Earnings - 10th June 2008

7:31AM Agrium raises guidance for Q2 to $2.80-3.00 from $1.92-2.22, consensus $2.50 (AGU) 92.16 : Co said, "Our excellent results are due to strong performance from both our Retail and Wholesale operations, which is particularly impressive given that the North American spring application season has been hampered by excessively cold and wet weather this year. Continued strong global crop prices have created unprecedented demand for crop inputs and we foresee an extended demand-driven cycle"... Co also announced construction at the EAgrium site has not yet resumed. Work was stopped at the site on April 21, 2008 due to permitting and other delays created by the Egyptian Government. As a result, the syndicate of international and local banks providing the project financing has requested we suspend future draws under the credit facility for construction costs and equipment purchases, and has alleged a condition of default. A Committee of the Egyptian Peoples' Assembly is finalizing a comprehensive review of the project, including land use issues and environmental, health and safety compliance. We expect that the review will be favourable to the project given that EAgrium is constructing the project to the highest health, safety and environmental standards consistent with its other operations... We have concerns these issues may not be resolved in the near term, in which event EAgrium's shareholders would be exposed to the loss of their total equity commitment.