Potash misses by $0.02, beats on revs; guides Q1 EPS below consensus; guides FY14 EPS below
Reports Q4 (Dec) earnings of $0.31 per share, excluding non-recurring items, $0.02 worse than the Capital IQ Consensus Estimate of $0.33; revenues fell 6.2% year/year to $1.54 bln vs the $1.34 bln consensus. Challenging fertilizer market conditions impacted our performance. Gross margins fell as lower prices in all three nutrients more than offset improved costs and higher sales volumes. Total gross margin for both the quarter ($460 million) and the year ($2.8 billion) fell below 2012 same-period results of $586 million and $3.4 billion, respectively.
Co issues downside guidance for Q1, sees EPS of $0.30-0.35 vs. $0.46 Capital IQ Consensus Estimate.
Co issues downside guidance for FY14, sees EPS of $1.40-1.80 vs. $2.01 Capital IQ Consensus Estimate.
"Pricing headwinds - most notably in potash - weighed on our performance, although there were signs as the quarter came to a close that the uncertainty in global markets was beginning to abate. Our focus remained on those things we can influence and we took important steps to enhance our competitive position across all three nutrients and prepare the company to deliver better performance."
"We expect our 2014 potash sales volumes to approximate 8.2-8.6 million tonnes. While this estimate assumes a benefit from higher anticipated global shipments, it will be partially offset by reduced sales from our New Brunswick facility (the result of a temporary reduction in operational capability) and a slightly lower Canpotex allocation for the first half of 2014 compared to the close of 2013 (due to a competitor's recent expansion run)."
Co issues downside guidance for Q1, sees EPS of $0.30-0.35 vs. $0.46 Capital IQ Consensus Estimate.
Co issues downside guidance for FY14, sees EPS of $1.40-1.80 vs. $2.01 Capital IQ Consensus Estimate.
"Pricing headwinds - most notably in potash - weighed on our performance, although there were signs as the quarter came to a close that the uncertainty in global markets was beginning to abate. Our focus remained on those things we can influence and we took important steps to enhance our competitive position across all three nutrients and prepare the company to deliver better performance."
"We expect our 2014 potash sales volumes to approximate 8.2-8.6 million tonnes. While this estimate assumes a benefit from higher anticipated global shipments, it will be partially offset by reduced sales from our New Brunswick facility (the result of a temporary reduction in operational capability) and a slightly lower Canpotex allocation for the first half of 2014 compared to the close of 2013 (due to a competitor's recent expansion run)."