Agrium reports sharp drop in profits

Calgary-based Agrium Inc. reported a substantial drop in fourth-quarter profit and revenue Tuesday.

But the fertilizer producer also said it sees signs of improved market conditions.

"The fourth quarter of 2009 saw the initial stages of recovery in the crop input sector," CEO Mike Wilson said.

"We have seen increasing demand for domestic potash and a tight supply situation for nitrogen and phosphate products."

The company,which reports profits in U.S. dollars, had net earnings for the three months of $30 million, or 19 cents per share. That was down from $124 million or 79 cents per share in the same period a year earlier, when demand for fertilizer producers was still high.

Agrium produces fertilizer ingredients for sale around the world. It also sells agricultural products through retail locations in Canada and the United States.

The company's net sales fell to $1.44 billion USin the fourth quarter of 2009, down from $1.94 billion in the comparable period of 2008.

Agrium was one of three major Canadian potash producers to announce a deal Monday to sell 350,000 tonnes of the fertilizer ingredient to a Chinese buyer. They did not disclose a price, but Wilson said Monday it was "a good deal for us."

The fertilizer giant also repeated Tuesday that it's still interested in acquiring CF Industries Holdings Inc. in a $5.2 billion USbid hostile bid. The offer stands until Feb. 22.