Top Fertilizer Maker Nutrien Asks Canada to Halt Rail Strike
Jen Skerritt
Thu, March 3, 2022,
(Bloomberg) -- Nutrien Ltd., the world’s biggest crop-nutrient producer, wants the Canadian government to stop a strike at one of the nation’s largest railways because the disruption could potentially lead to smaller harvests.
About 3,000 workers at Canadian Pacific Railway Ltd. voted in favor of going on strike March 16 if a collective bargaining agreement isn’t reached, according to their union. That would impact Nutrien’s ability to move potash, nitrogen and other crop chemicals to retail locations across Canada just ahead of spring planting, the company said in an email.
Without such products, harvests could be reduced when food prices are soaring. The fertilizer supply chain is still “reeling” from impacts of everything from Covid-19 to sanctions on Belarus and Russia’s invasion of Ukraine, Nutrien said. Crop nutrient prices are at all-time highs amid concerns about shortfalls.
“The global food supply is already stretched and cannot afford further negative impacts at this time,” the company said Wednesday in a statement. “We would be very disappointed to see a labor dispute have such a significant impact on global agricultural supply chains, and consequently, we would hope that the Canadian government will consider intervening to avert another transportation crisis.”
A disruption in rail service will have “serious implications” as global food security concerns are heightened and there is strong demand for Canadian potash, said Natashia Stinka, spokeswoman for Canpotex, a joint venture that markets sales outside North America for Nutrien and Mosaic Co.
“Our overseas partners are counting on Canpotex to deliver the potash they need to sustain global food production,” Stinka said Thursday. “We are doing what we can, but reliable rail service is vital.”
LATEST QUARTERLY RESULTS
Q4
2021
Latest Quarterly Results (CAD $)Q4 2021
Latest Quarterly Results (CAD $)Q4 2021
% Change
Total Revenues ($M) $2,040 1%
Operating Ratio (%) 59.2% +530 bps
Adjusted Operating Ratio (%)(1) 57.5% +360 bps
Operating Income ($M) $832 -10%
Adjusted Operating Income ($M)(1) $868 -6%
Diluted EPS(2) $0.74 -38%
Adjusted Diluted EPS(1)(2) $0.95 -6%
(1) For a full description and reconciliation of Non-GAAP Measures see CP’s Q4 2021 Earnings Release
(2) As a result of the five-for-one share split of the Company's issued and outstanding Common Shares, which began trading on a post-split basis on May 14, 2021, per share amounts and all outstanding Common Shares for comparative periods of 2020 have been retrospectively adjusted.
Operating Ratio (%) 59.2% +530 bps
Adjusted Operating Ratio (%)(1) 57.5% +360 bps
Operating Income ($M) $832 -10%
Adjusted Operating Income ($M)(1) $868 -6%
Diluted EPS(2) $0.74 -38%
Adjusted Diluted EPS(1)(2) $0.95 -6%
(1) For a full description and reconciliation of Non-GAAP Measures see CP’s Q4 2021 Earnings Release
(2) As a result of the five-for-one share split of the Company's issued and outstanding Common Shares, which began trading on a post-split basis on May 14, 2021, per share amounts and all outstanding Common Shares for comparative periods of 2020 have been retrospectively adjusted.
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