(Adds context on rail capacity, previous results)
April 2 Fertilizer company Agrium Inc
warned on Wednesday that a big backlog of grain
shipments on Canada's railways and a late start to spring
planting will hit its first-quarter earnings hard.
Calgary, Alberta-based Agrium estimated per-share earnings
for the quarter ended March 31 at just above break even, well
below the average analyst estimate of 53 cents a share,
according to Thomson Reuters I/B/E/S.
In the year-before quarter, Agrium earned $141 million, or
94 cents a share.
The company's shares fell 2.9 percent to C$104.44 in early
trading on the Toronto Stock Exchange.
Agrium had said in January that rail shipment "challenges"
were weighing on potash sales volumes.
A tough winter and a record-breaking Canadian harvest have
overwhelmed the country's two dominant railroads, Canadian
National Railway Co and Canadian Pacific Ltd,
creating a backlog of grain shipments that may not clear until
Agrium also said its Carseland, Alberta, nitrogen facility
experienced a failure in its auxiliary boiler on March 22,
resulting in an unplanned shutdown. The boiler is expected to be
fixed by the second half of May.
The shutdown is likely to cut the availability of urea by
about 100,000 tonnes and that of ammonia by about 20,000 tonnes
in the second quarter.
In February Agrium reported a 72 percent decline in
fourth-quarter profit as grain prices dropped from a year
earlier, taking fertilizer prices down with them.
Agrium is scheduled to announce its first-quarter results on
(Reporting by Ashutosh Pandey in Bangalore and Allison Martell
in Toronto; Editing by Maju Samuel; and Peter Galloway)