Agrium Posts Lower Profit, Sees Rebound (AGU, MON, MOS, DD)

Agrium Inc. (NYSE: AGU) reported a weak fourth quarter profit on Tuesday, primarily due to lower fertilizer prices, but the company said it expects increasing sales volumes to help 2010 financial results.

The Canadian agricultural chemical company reported fourth quarter earnings of $0.19 per share, less than the consensus estimate of $0.24 per share. Revenues fell 25.7% year-over-year to $1.44 billion versus the $1.55 billion consensus estimate.

Management said, "The fourth quarter of 2009 saw the initial stages of recovery in the crop input sector. We have seen increasing demand for domestic potash and a tight supply situation for nitrogen and phosphate products." Grain and fertilizer prices peaked in mid-2008 before collapsing during the credit crisis. Analysts are looking for a major rebound in 2010 as farmers increase spending on chemicals and fertilizers.

Shares of Agrium rose 2.20% to $59.05 in pre-market activity after closing Monday's session at $57.77. Other companies in the sector that may see heavy trading volume Agrium's news are Monsanto (NYSE: MON), Mosaic Co. (NYSE: MOS) and DuPont (NYSE: DD).