By KEVIN WALKER

Michigan Correspondent

SASKATOON, Saskatchewan — Fertilizer producer and retailer Nutrien Ltd. reported earnings negatively affected by the late-arriving spring, but offered upbeat prospects and earnings guidance at its first earnings call last week.

The Saskatchewan-based firm is a combination of potash producer Potash Corp. and Agrium, Inc., a fertilizer producer and retailer that was based in Calgary, Alberta. In the earnings call and an accompanying press release, the Canadian firm said a delayed spring season skewed some of the numbers.

Nutrien’s full-year 2018 guidance was raised to $2.20-$2.60 diluted earnings per share from continuing operations, up from $2.10-$2.60 previously. Potash segment earnings in the first quarter increased due to higher prices, lower production costs, “merger synergies” and strong offshore sales volumes.

The company declared a quarterly dividend of 40 cents a share and repurchased 10.3 million shares, approximately 1.6 percent of shares outstanding.

“Nutrien’s first quarter was affected by a late start to the spring season across North America and West Coast rail performance issues,” said Nutrien President and CEO Chuck Magro. “However, we expect a strong second quarter, with improved grower margins and strong demand and firm prices for most crop inputs.”

The market outlook portion of the presentation said crop prices are supported by the degradation of Argentine corn and soybean crops, which are projected to decline by 20 percent and more than 30 percent, respectively. This reduces export supplies and supports export demand for U.S. and Brazilian corn and soybeans.

Also, “global grains and oilseeds” inventories are projected to decline by nearly 3 percent in 2017/18, the first decline in five years and largest year-over-year decline since 2010/11.

There is some risk to total crop nutrient demand in the first half of the year, in particular for ammonia, the presentation stated. Growers could potentially cover a higher proportion of nitrogen needs through top and sidedress applications after plantings are complete.

It added that North American growers are optimistic, despite the late spring season and concerns over trade issues. The USDA projects that U.S. combined corn, soybean and cotton area will decline by just over 1 percent year-over-year, which may lead to lower overall seed expenditures this year.

Regarding potash, the company’s premier product, strong customer engagement and positive potash sector fundamentals “continued to support potash deliveries during the first quarter of 2018, and we expect potash demand to remain robust as a result of high underlying consumption and relatively low inventory levels in most markets. We have increased our global potash shipment forecast to 64.5-66.5 million tonnes (metric tons) for 2018.”

The company said it also expects “normal” North American potash application rates, supported by affordable potash prices and the need to replace nutrients removed by last year’s harvest.

For the three months ended March 31, the company lost $1 million, down from the $97 million it earned in the first quarter of 2017. The main reason was the late planting season, which pushed retail crop input purchases to the second quarter, the company said.

Potash sales volumes were up 11 percent in the first quarter because of strong global demand. Offshore selling prices were up 15 percent and North American selling prices were up 8 percent in the first quarter compared to the same period in 2017. The weighted average realized potash selling price was up 12 percent from the first quarter of 2017.

Total nitrogen sales volumes for the first quarter were 3 percent lower due to a delayed North American spring season. Ammonia sales volumes in the current quarter decreased as a result of the unfavorable weather.

Realized selling price for nitrogen was up 1 percent from the first quarter of 2017. Higher realized prices for urea more than offset lower realized prices for ammonia and some other nitrogen products.

Total phosphate sales volumes for the quarter were 8 percent higher than the same period last year, supported by strong fertilizer demand and increased production levels at the company’s phosphate facilities. The average realized selling price for phosphate was up 3 percent due to firm global fertilizer prices, which were driven by improved market fundamentals and higher input costs, it said.