Highlights from the results include the following:
- The company’s 1Q18 earnings from continuing operations, adjusted for purchase price allocation ($74 million or $0.08 per share) and merger related costs ($66 million or $0.08 per share) not included in guidance, were $0.16 per share. First quarter EBITDA adjusted for merger related costs were $553 million.
- Retail earnings in the first quarter were affected by a late spring season in North America, with sales and earnings shifted to the second quarter.
- The company acquired 29 retail locations with estimated annual revenues of approximately $280 million through April 2018. In addition to this, the company announced the newly branded retail business – Nutrien Ag SolutionsTM – and launched an integrated digital platform enabling year-round commercial and agronomic digital management for growers.
- Potash segment earnings in 1Q18 increased because of higher prices, lower production costs, merger synergies and strong offshore sales volumes, despite experiencing significant rail issues during the quarter.
- Nutrien full-year 2018 guidance was raised to $2.20 to $2.60 diluted earnings per share from continuing operations, up from $2.10 to $2.60 previously, and first half 2018 guidance is provided at $1.50 to $1.65 earnings per share.
- Nutrien executed on its capital priorities by declaring a quarterly dividend of $0.40 per share and repurchasing 10.3 million shares under its normal course issuer bid program year-to-date (approximately 1.6% of shares outstanding).
- The company has achieved $150 million in run-rate synergies as at 31 March this year.
- The company completed its obligor exchange and successfully converted legacy company bonds to a simplified Nutrien indenture platform that aligns covenants and reduces administrative costs.
The President and CEO of Nutrien, Chuck Magro, said: “Nutrien's first quarter was affected by a late start to the spring season across North America and west coast rail performance issues. However, we expect a strong second quarter with improved grower margins and strong demand and firm prices for most crop inputs.
“We executed on our strategic and capital priorities with a meaningful return of capital to shareholders, including an increase in our dividend and half a billion dollars in shares repurchased. We made significant progress towards achieving our annual synergy target of $500 million. We also continued to grow our leading global retail network, through numerous accretive acquisitions and the launch of our digital platform. The divestiture of equity investments remains on track and the expected funds will provide further opportunity to accelerate growth and enhance shareholder returns.”
Read the article online at: https://www.worldfertilizer.com/nitrogen/09052018/nutrien-releases-1q18-results/