Fertilizer-maker Agrium Inc. (AGU) has raised its takeover bid for smaller rival CF Industries Holding Inc. (CF). The company has increased its exchange offer for acquiring all of the outstanding shares of CF Industries to $92.99 per CF share based on Agrium’s closing stock price on Nov 4, 2009. Under the terms of the offer, stockholders would receive $45.00 in cash − an increase of $5.00 or 12.5% in the cash consideration − and one common share of Agrium for each CF share.  According to Agrium, this offer provides a premium of over 67% to CF’s closing price as on Feb 24, 2009, the day before Agrium made its first bid, and about 84% to CF’s 30-day volume weighted average price. Agrium has extended the expiration date of the exchange offer to Nov 18, 2009.  However, CF rebuffed Agrium’s offer, alleging substantial undervaluation of the ...

Agrium Inc. (AGU) reported adjusted net earnings of 29 cents per share in the third quarter of 2009, missing the Zacks Consensus Estimate of 32 cents. Year over year, earnings declined a significant 87% on lower volumes and prices. Revenues were down 41% year over year to $1.9 billion on weak corn prices and lower consumption of crop protection products at retail level.  Retail segment: Retail segment revenues plunged 25% to $1.2 billion in the quarter on a 41% decline in crop nutrient sales to $345 million due to a significant decline in crop nutrient prices. Crop nutrient volumes in the quarter remained flat. Gross profit from the crop nutrients business almost halved to $31 million. Crop protection sales were $768 million in the quarter, down 12% from the same period last year. The decline was driven by lower volumes for fungicides and lower pricing for glyphosate products. ...

For Immediate Release

Chicago, IL – September 30, 2009 – Zacks.com releases the latest Zacks Industry Rank. Stocks featured in this week’s analysis include Agrium (AGU), CF Industries (CF), Intrepid Potash (IPI), Mosaic (MOS), Potash of Saskatchewan (POT) and Market Vectors Agribusiness (MOO).

Zacks Industry Rank Analysis is written by Charles Rotblut, CFA, Senior Market Analyst for Zacks.com.

This week: Fertilizer's Farming Problem

Hostile takeover attempts have kept fertilizer companies in the news. The acquisition talk has helped to overshadow a negative trend that should have investors concerned - ongoing cuts to full-year profit forecasts.

During the past 90 days, the Zacks Consensus Estimates have been revised downwards on several fertilizer companies, including Agrium (AGU), Intrepid Potash (IPI), Mosaic (MOS) and Potash of Saskatchewan (POT).

The most recent cuts were related to a warning from POT. The company predicted

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Hostile takeover attempts have kept fertilizer companies in the news. The acquisition talk has helped to overshadow a negative trend that should have investors concerned - ongoing cuts to full-year profit forecasts.

During the past 90 days, the Zacks Consensus Estimates have been revised downwards on several fertilizer companies, including Agrium (AGU), Intrepid Potash (IPI), Mosaic (MOS) and Potash of Saskatchewan (POT).

The most recent cuts were related to a warning from POT. The company predicted that its full-year profits would be in the range of $3.25 to $3.75 per share, instead of the prior guidance of $4 to $5 per share. The company blamed "continued slow demand and limited restocking by fertilizer distributors" as the reasons for the revised forecast.

All Is Not Well on the Farm

The big reason why profit projections for fertilizer companies have been falling is not weaker demand for fertilizer,

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CF Industries Holdings (CF) announced today that it has extended the expiration date of its exchange offer for all of the outstanding shares of Terra Industries (TRA) common stock until Aug. 31. The offer was scheduled to expire at 5:00 p.m. Eastern time on Aug. 21.

Since January this year, the Illinois-based fertilizer company has been wooing its Iowa-based rival Terra in an all-stock deal for a total of $2.1 billion. Under the original proposal, each common share of Terra would have been entitled to receive 0.4235 shares of CF. However, Terra rejected the offer for the second consecutive time on Mar. 5, saying it undervalued the company.

In response, CF increased its offer price on March 9, to $2.77 billion based on $27.50 for each Terra share and again on March 23, to $3.07 billion based on $30.50 each by agreeing both times to an exchange

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Illinois-based fertilizer company CF Industries (CF) posted a 26% drop in profit for the second quarter of 2009 driven by reduced volumes in the Nitrogen segment and significantly lower price realizations in Phosphate. Net earnings in the quarter were $213 million or $4.33 per diluted share, versus $288.6 million or $5.01 per diluted share in the prior year quarter. Net sales slashed 15% to $991 million due to a 10% reduction in Nitrogen volumes and lower selling prices in the Phosphate segment. Nitrogen Segment Sales in the Nitrogen segment went down 11% to $755 million. Sales volume dipped to 1.9 million tons from 2.1 million tons in the year-ago quarter. This included about 145,000 tons of granular urea and urea ammonium nitrate (UAN) solution exports. However, the segment benefited from significantly lower natural gas prices in North America. Average nitrogen selling prices were encouraging ...

Calgary-based Fertilizer Company Agrium Inc. (AGU) has again extended its deadline for its hostile offer of $3.9 billion to buy out rival CF Industries Holdings Inc. (CF). Agrium has stretched the deadline to August 19 from the previous deadline of July 22, stating that only about 21% or 10.4 million shares of CF Industries have been tendered and not withdrawn from the exchange offer as of July 17, 2009.

On June 23, CF’s shareholders had tendered about 62% of their total outstanding shares in support of Agrium's current offer of $40 plus one Agrium share per CF share. This was at 59% premium to CF's closing price on February 24, 2009, when the offer was made. Soon after the tender results, Agrium had extended the deadline to acquire CF Industries to July 22, 2009.

CF had repeatedly rejected Agrium’s takeover offer. Despite two upward revisions in the offer price, CF

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Potash Producers Hopeful About Rising DemandA recent study conducted by the International Fertilizer Industry Association (IFA) has suggested a possible pick-up in fertilizer demand by the second half of this year. This led most of the fertilizer giants such as Potash Corp of Saskatchewan (POT), Intrepid Potash (IPI), Terra Industries (TRA), Agrium (AGU) and CF Industries (CF) to witness a surge in their stock prices.Since late 2008, the fertilizer industry has been adversely affected by slackening demand. Lack of confidence, limited access to credit, and lower grain prices led farmers to either defer fertilizer purchases or reduce application rates. Consequently, as the study showed, fertilizer consumption fell 14% in the first half of this year.Notwithstanding, the potash cartel (accounting for ...

The takeover battle between CF Industries Holdings Inc. (CF) and Agrium Inc. (AGU) took another turn when the former announced that it will consider a merger deal with Agrium, the hostile bidder on June 26, 2009. Stephen R. Wilson, Chief Executive, President and Chairman of CF Industries stated that Agrium should however make an attractive offer, which must interest the company's board.

Based in Deerfield, Illinois, CF had earlier repeatedly rejected Agrium's takeover offer. Despite two upward revisions in the offer price, CF had turned down Agrium's proposal on grounds of substantial undervaluation and associated regulatory issues. CF has stated that Agrium's final offer of about $4.4 billion continues to undervalue the company.

On June 23, CF's shareholders tendered 62% of their total outstanding shares in support of Agrium's current offer of $40.00 plus one Agrium share per CF share. Based on

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Monday May 11, 2009 Navivest Canadian fertilizer producer Agrium (AGU) today announced that it is increasing its current outstanding offer to acquire CF Industries (CF) to $85.20 per CF Industries... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]