Could 10 (Reuters) – Nutrien Ltd (NTR.TO) on Wednesday reduce its forecast for 2023 earnings as elevated fertilizer costs owed to Western sanctions on Russia and Belarus weigh on demand.
U.S.-listed shares of the corporate fell 3.9% in prolonged buying and selling because it additionally reported a lower-than-expected quarterly revenue.
Although fertilizer costs have dipped from report highs scaled final 12 months, farmers are holding again on purchases on expectations of an additional decline.
The Canadian agency’s North America potash gross sales quantity dropped 30%, with costs averaging $401 per tonne in the course of the reported quarter, 41% decrease in contrast with final 12 months.
The corporate reduce its full-year adjusted earnings outlook to between $5.50 per share and $7.50 per share, from $8.45 per share to $10.65 per share forecast earlier.
Analysts on common count on a revenue of $8.56 per share.
Nutrien, nonetheless, stated it anticipates an increase in world potash demand within the second half of 2023 as inventories deplete and affordability for farmers improves.
It additionally expects potash shipments from Belarus to be larger than its earlier estimates.
Nutrien, which competes with CF Industries holding Inc (CF.N) and Mosaic Co (MOS.N), stated its complete quarterly gross sales fell 20% to $6.1 billion.
On an adjusted foundation, the potash producer earned $1.11 per share for the quarter ended March 31, in contrast with estimates of $1.50, in response to Refinitiv knowledge.
Earlier this month, peer Mosaic additionally missed revenue estimates.
Reporting by Sourasis Bose in Bengaluru; Enhancing by Shinjini Ganguli and Shounak Dasgupta
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