Nutrien misses third-quarter profit estimates as lower crop prices weigh
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Nov 6 (Reuters) -Nutrien NTR.TO NTR.Nfell short of Wall Street expectations for third-quarter profit on Wednesday, as the fertilizer producerstruggled with lower crop prices, sending U.S.-listed shares of the company down 2.3% after the bell.
Tight global supply, low channel inventories and seasonal demand in several key markets have kept prices for nutrients such as potash and phosphate high at a time when crop prices have declined, forcing farmer to curb spending on fertilizers.
"Global phosphate markets remain tight supported by Chinese export restrictions and production outages in the U.S. We anticipate some impact on global demand due to tight supply and weaker affordability," the company said.
Nutrien lowered its outlook for annual phosphate sales volumes to be in the range of 2.4-2.5 million tonnes from 2.5-2.6 million tonnes previously.
However, Nutrien raised its annual forecast for potash sales volumes, owing to expectations of stronger demand in key markets. Other producers are also hopeful about a rebound in demand and prices during the second half of 2024.
The company's net profit fell nearly 70% to $25 million in the third quarter, while net sales declined 5% to $5.35 billion.
Lower sales volumes and a decline in seed margins in key markets led to a 23% fall in adjusted core profit at Nutrien's retail segment - its largest by revenue.
Nutrien's results are in contrast to peers including CF Industries CF.N, and Norwegian firmYara International YAR.OL, both of which posted higher quarterly profits.
The Saskatoon, Canada-basedfirm posted an adjusted profit of 39 cents per sharefor the three months ended Sept. 30, compared with analyst's estimates of 46 cents per share, according to data compiled by LSEG.
Reporting by Vallari Srivastava in Bengaluru; Editing by Maju Samuel
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