Agrium Achieves Record Results for the Quarter and the First Half.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. -- Agrium Agrium Inc. NYSE: AGU TSX: AGU engages in the production, marketing, and distribution of agricultural products and services, and nutrients for agricultural and industrial markets in the United States and Argentina. Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AGU AGU Aoyama Gakuin University, Tokyo, Japan AGU American Geophysical Union AGU Arabian Gulf University (Bahrain) AGU All Grown Up (TV show) AGU Aguascalientes, Aguascalientes, Mexico ) (NYSE NYSE See: New York Stock Exchange :AGU) ALL AMOUNTS ARE STATED IN U.S.$ Agrium Inc. announced today that net earnings for the second quarter of 2005 were a record $133-million ($0.99 diluted earnings per share diluted earnings per share An earnings measure calculated by dividing net income less preferred stock dividends for a period by the average number of shares of common stock that would be outstanding if all convertible securities were converted into shares of ), an increase of 80 percent over net earnings of $74-million ($0.52 diluted earnings per share) for the same period in 2004. Net earnings for the first six months of the year were a record $157-million ($1.18 diluted earnings per share), almost double 2004 net earnings of $85-million ($0.60 diluted earnings per share) for the same period. This quarter marks the sixth consecutive quarter of year-over-year earnings improvement. Our Wholesale per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. margins increased year-over-year for all three of our major product groups of potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. , nitrogen nitrogen (nī`trəjən), gaseous chemical element; symbol N; at. no. 7; at. wt. 14.0067; m.p. −209.86°C;; b.p. −195.8°C;; density 1.25 grams per liter at STP; valence principally −3, +3, or +5. and phosphate phosphate, salt or ester of phosphoric acid, H3PO4. Because phosphoric acid is tribasic (having three replaceable hydrogen atoms), it forms monophosphate, diphosphate, and triphosphate salts in which one, two, or three of the hydrogens of the . Higher selling prices due to tight supply/demand fundamentals and increased sales into higher margin regions more than offset increases in raw material costs. Total sales volumes in our Wholesale businesses for the first half of 2005 exceeded those of the first half of 2004. Sales volumes for the quarter were similar to the previous year as lower opening inventories constrained con·strain tr.v. con·strained, con·strain·ing, con·strains 1. To compel by physical, moral, or circumstantial force; oblige: felt constrained to object. See Synonyms at force. 2. sales. We ended the second quarter with very low inventories for most products. Results from our Retail business kept pace with last year's record performance with increases in seed, crop protection products and fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. sales. We benefited from our geographical diversification Diversification A risk management technique that mixes a wide variety of investments within a portfolio. It is designed to minimize the impact of any one security on overall portfolio performance. Notes: Diversification is possibly the greatest way to reduce the risk. as positive results from our U.S.-based retail operations offset lower South American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of retail margins. South American retail results are expected to improve in the second half as the region enters its spring season and we begin to realize the full benefit of the integration of the newly acquired South American retail assets. "Once again, we achieved strong results from all business segments, and expect our strong performance to continue," said Mike Wilson Mike Wilson could refer to the following people:
tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. two million common shares." Fundamentals for all three nutrients remain strong with limited new capacity coming on stream for the balance of the year. Crop prices have improved over the last few months, which should be positive for the upcoming fall season. We are issuing guidance for the year of $2.20 to $2.40 diluted earnings per share, or $1.02 to $1.22 for the second half of 2005. KEY DEVELOPMENTS - In the second quarter, we generated EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become of $262-million. Both nitrogen and potash margins averaged close to $100/tonne in the second quarter with phosphate margins improving to $61/tonne. In addition to prices being driven by tight supply/demand, this is also partly as a result of redirecting sales into higher margin regions. Retail, potash and phosphate contributed over $140-million of EBITDA in the first half of 2005. - Our overall natural gas cost for the second quarter was $4.38/MMBtu, a reflection of our lower cost gas in Alberta, Argentina Argentina (ärjəntē`nə, Span. ärhāntē`nä), officially Argentine Republic, republic (2005 est. pop. 39,538,000), 1,072,157 sq mi (2,776,889 sq km), S South America. and Alaska Alaska (əlă`skə), largest in area of the United States but third smallest (exceeding only Vermont and Wyoming) in population, occupying the northwest extremity of the North American continent, separated from the coterminous United States , as well as our successful hedging program. For the remainder of 2005, approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 60 percent of our gas is advantaged either through gas hedges or through low-cost international gas contracts. - On July July: see month. 14, 2005, we successfully concluded natural gas contract negotiations that will enable us to extend operations of our Kenai, Alaska This article is about a city in Alaska. For the character from Disney's Brother Bear, see Kenai (Brother Bear). Kenai is a city in Kenai Peninsula Borough in the U.S. state of Alaska. nitrogen facility for another year. As of November November: see month. 2005, Agrium will operate one ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. plant and one urea plant at this site. - In June June: see month. , we reached an agreement in principle with Imperial Oil to acquire its Western Canadian fertilizer distribution assets at over 190 sites for $22-million. This agreement includes exclusive fertilizer supply agreements with the independent operators of these locations. The transaction is expected to close in the third quarter of 2005, subject to a definitive purchase and sale agreement and due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. . We recently received regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. approval for this transaction. - We continue to be recognized for corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. and responsibility, and in June were named one of the Best 50 Corporate Citizens in Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of by Corporate Knights Corporate Knights Inc. was established in 2002, and is an independent Canadian-based media company in Toronto. They also have the world’s largest circulation corporate responsibility magazine. . Corporate Knights ranks companies in five categories: environment; international stakeholder stakeholder n. a person having in his/her possession (holding) money or property in which he/she has no interest, right or title, awaiting the outcome of a dispute between two or more claimants to the money or property. relations and human rights; product safety and business practices; community relations 1. The relationship between military and civilian communities. 2. Those public affairs programs that address issues of interest to the general public, business, academia, veterans, Service organizations, military-related associations, and other non-news media entities. ; and employee relations and diversity in the workplace. MANAGEMENT'S DISCUSSION AND ANALYSIS Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial July 27, 2005 The following interim Management's Discussion and Analysis (MD&A) updates the annual MD&A included in our 2004 Annual Report to Shareholders, to which readers are referred. No update is provided where an item is not material or where there has been no material change from the discussion in our annual MD&A. OVERVIEW OF CONSOLIDATED con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: FINANCIAL HIGHLIGHTS Net Earnings Agrium's second quarter consolidated net earnings were $133-million, an increase of 80 percent over net earnings of $74-million for the same quarter of 2004. Diluted earnings per share for the second quarter of 2005 were $0.99 compared to $0.52 for the second quarter of 2004. Consolidated net earnings for the six month period ended June 30, 2005 were $157-million, or $1.18 diluted earnings per share, an increase of $72-million and $0.58 over net earnings of $85-million and $0.60 diluted earnings per share reported for the same period in 2004. Comparative information has been restated for a change in accounting policy to reclassify Verb 1. reclassify - classify anew, change the previous classification; "The zoologists had to reclassify the mollusks after they found new species" class, classify, sort out, assort, sort, separate - arrange or order by classes or categories; "How would you preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. as debt (refer to note two of the financial statements). Earnings before interest and taxes In financial and business accounting, earnings before interest and taxes (EBIT) is a measure of a firm's profitability that excludes interest and income tax expenses.[1] EBIT = Operating Revenue – Operating Expenses + Non-operating Income (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) increased by $97-million to $224-million for the second quarter of 2005 compared to EBIT of $127-million for the same period in 2004. EBIT for the six month period ended June 30, 2005 were $276-million, an increase of $118-million over EBIT of $158-million reported in the first six months of 2004. The increase in 2005 second quarter and year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. earnings compared to last year is largely attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to higher per tonne margins for all Wholesale product lines reflecting increasing prices in continuing tight supply/demand environments in both our domestic and international markets. Gas hedging gains contributed $7-million to gross margins for the first six months of 2005. Higher prices more than offset increased cost of product from higher gas costs. Sales volumes were constant for the second quarter but up four percent for the year-to-date compared to the same periods in 2004. Cash Provided by Operating Activities Operating activities during the second quarter of 2005 generated $160-million of cash compared to $25-million for the same quarter of 2004. Operating activities for the six months ended June 30, 2005 provided cash of $285-million compared to $126-million for the same period of 2004. The majority of increased cash from operations for both the second quarter and year-to-date is due to the increase in net earnings. Improved collection rates of receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed combined with a larger reduction of inventory also contributed to the increased cash from operations for both the quarter and the six months ended June 30, 2005. Financial Position Our strong opening cash position at the beginning of the year has been maintained at $427-million. Cash provided by operating activities continued to increase, and has been used to repurchase shares at a cash cost of $40-million during the second quarter of 2005 and to redeem redeem v. to buy back, as when an owner who had mortgaged his/her real property pays off the debt. The term also refers to paying the amount due and all charges after a foreclosure (due to failure to make payments when due) has begun. $175-million eight percent preferred securities on February February: see month. 14, 2005, which together reduced dilution Dilution A reduction in earnings per share of common stock that occurs through the issuance of additional shares or the conversion of convertible securities. Notes: Adding to the number of shares outstanding reduces the value of holdings of existing shareholders. in our earnings per share for the six month period by $0.09 per share. We also increased capital expenditures and acquired retail outlets retail outlet n → punto de venta retail outlet n → point m de vente retail outlet retail n → in South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. . Consolidated accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying have increased by $53-million largely due to higher sales prices for all products. Accounts receivable as a percentage of sales have declined from 41 percent at June 30, 2004 to 39 percent at June 30, 2005. Consolidated inventory has increased by $25-million. North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. Wholesale inventory has declined by $24-million, while South America Wholesale inventory has increased $5-million due to differences in demand. Retail inventory quantities have increased by $44-million primarily due to accelerated purchasing of product for resale resale n. selling again, particularly at retail. In many states a "resale license" or "resale number" is required so that the state can monitor the collection of sales tax on retail sales. RESALE. . Current liabilities Current Liabilities Usually appearing on a company's balance sheet, it represents the amount owed for interest, accounts payable, short-term loans, expenses incurred but unpaid, and other debts due within one year. are up $77-million compared to prior year, largely due to an increase in accruals Accruals Accounts on a balance sheet that represent liabilities and non-cash-based assets used in accrual-based accounting. These accounts include, among many others, accounts payable, accounts receivable, goodwill, future tax liability and future interest expense. for income tax payables Payables Related: Accounts payable of $49-million, consistent with the increase in EBIT over the same period. Other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. increased $61-million compared to June 30, 2004 largely due to accruals in 2004 related to the future closure of our Kenai, Alaska nitrogen facility. Business Segment Performance Retail - Second quarter 2005 EBIT for Retail of $51-million was relatively constant compared to the same period last year. Higher fertilizer and seed prices and increased seed volumes were the primary contributors to an overall five percent increase in net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight . Disease pressure in the Western U.S. and increased insect activity throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. more than offset lower herbicide herbicide (hr`bəsīd'), chemical compound that kills plants or inhibits their normal growth. A herbicide in a particular formulation and application can be described as selective or nonselective. prices resulting in a two percent increase in chemical revenues over the same period last year. North America Wholesale - EBIT for the second quarter grew to $175-million, an increase of $101-million over 2004 second quarter EBIT of $74-million. - Gross profit for this same time period was $224-million, an increase of $87-million over the $137-million gross profit reported for the second quarter of 2004. Nitrogen contributed $67-million toward North America Wholesale's overall increase, which primarily came from $28-million growth in ammonia gross profit and $33-million growth in urea gross profit. Ammonia sales prices and volumes were substantially increased in both our international and domestic markets. Similarly urea prices were up but sales volumes were down primarily due to reduced urea production at our Kenai, Alaska facility. Increased sales prices and volumes over the comparative period are a reflection of a tight supply/demand balance world-wide. Potash gross profit increase of $18-million for the second quarter of 2005 over the same quarter last year was due to higher prices. Strong international demand over the past year has resulted in lower inventory volumes available for domestic sales. - Operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. were down by $14-million in the second quarter of 2005 compared to the same period of 2004 primarily due to the elimination of legal expenses and earn-out Earn-out Refers to an additional payment in a merger or acquisition that is not part of the original acquisition cost, which is based on the acquired company's future earnings relative to a level determined by the merger agreement. obligations following the settlement of litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. related to our Kenai facility at the end of 2004 and improved returns on our non-qualifying gas hedges. - As a result of the successful negotiation of gas supply contracts with Cook Inlet Cook Inlet Inlet, Gulf of Alaska in the northern Pacific Ocean. Bounded by the Kenai Peninsula on the east, it extends northeast for 220 mi (350 km), narrowing from 80 to 9 mi (129 to 14 km). Anchorage is situated near its head. producers, the planned closure of our Kenai, Alaska nitrogen facility has been deferred from November 2005 to November 2006. As of November 2005, we will operate one ammonia plant and one urea plant, with annual net nitrogen sales capacity of approximately 910,000 tonnes. South America Wholesale - South America Wholesale second quarter EBIT and gross profit were $25-million and $30-million respectively, both up $4-million from 2004. This growth is primarily related to increased urea prices, which trend with the Black Sea urea price that has been driven up due to high international demand. The effect of higher pricing was partially offset by decreases in volumes due to a combination of delayed purchasing by local customers and lower demand in Brazil Brazil (brəzĭl`), Port. Brasil, officially Federative Republic of Brazil, republic (2005 est. pop. 186,113,000), 3,286,470 sq mi (8,511,965 sq km), E South America. , our main export market. Other - EBIT for our Other non-operating business segment for the second quarter of 2005 was down $7-million from the same period last year. The reduction was primarily due to increased long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. incentive plan expenses and higher expenses related to the business development opportunities.
SELECTED QUARTERLY INFORMATION
(Unaudited, in millions of U.S. dollars, except per share
information)
2005 2004 (a) 2003 (a)
--------------------------------------------------
Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3
--------------------------------------------------
Net sales 1,180 537 720 672 1,011 435 637 561
Gross Profit 375 171 254 231 283 142 204 172
Net earnings (loss) 133 24 98 83 74 11 (113) 22
Earnings (loss)
per share
-basic 1.01 0.18 0.75 0.63 0.56 0.08 (0.90) 0.17
-diluted 0.99 0.18 0.71 0.60 0.52 0.08 (0.90) 0.17
(a) Amounts have been restated to reflect the January 1, 2005
adoption of the revised Canadian accounting standards
reclassifying preferred shares to debt (see note two to the
financial statements).
The fertilizer and agricultural retail businesses are seasonal in nature. Consequently, quarter-to-quarter results are not directly comparable. For purposes of comparison, fertilizer sales volumes are best measured on a fertilizer year basis, corresponding to the period from post-harvest application through to spring planting application. Fertilizer year sales are measured from July 1st to June 30th. NON-GAAP MEASURES In the discussion of our performance for the quarter, in addition to the primary measures of earnings and earnings per share, we make reference to EBIT (earnings before interest expense and income taxes) and EBITDA (earnings before interest expense, income taxes, depreciation, amortization and asset impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. ). We consider EBIT and EBITDA to be useful measures of performance because income tax jurisdictions and business segments are not synonymous, and we believe that allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of income tax charges distorts the comparability of historical performance for the different business segments. Similarly, financing and related interest charges cannot be allocated to all business segments on a basis that is meaningful for comparison with other companies. EBIT and EBITDA measures are also used extensively in the covenants relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc our financing arrangements. EBIT and EBITDA are not recognized measures under GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). , and our method of calculation may not be comparable to other companies. EBIT should therefore not be used as an alternative to net earnings (loss) determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP as an indicator of our performance. Similarly, EBITDA should not be used as an alternative to cash provided by (used in) operating activities as determined in accordance with GAAP. KEY RISKS AND UNCERTAINTIES We anticipate strong demand for our North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. retail and wholesale products as record rainfall in Western Canada
Western Canada, commonly referred to as the West and an increase in U.S. corn acreage should contribute to increased nutrient nutrient /nu·tri·ent/ (noo´tre-int) 1. nourishing; providing nutrition. 2. a food or other substance that provides energy or building material for the survival and growth of a living organism. removal in 2005. Crop prices have also increased over the past two months improving the outlook for farm incomes. North American producer supplies are tight entering the second half of 2005 with inventories for the three main crop nutrients well below the five-year average. In South America, the nutrient demand outlook remains uncertain following a decline in demand through the first half of 2005. The nitrogen market outlook remains positive as there is limited new global capacity expected in the second half of 2005. The combination of strong Chinese Chinese, subfamily of the Sino-Tibetan family of languages (see Sino-Tibetan languages), which is also sometimes grouped with the Tai, or Thai, languages in a Sinitic subfamily of the Sino-Tibetan language stock. domestic demand and the implementation of a 30 percent tax on urea exports should continue to restrict In the C programming language, the data pointed to by a pointer declared with the restrict qualifier may not be pointed to by any other pointer. This allows for more effective optimization. the amount of Chinese product on the market. However, further changes in China's export policy could impact the global trade balance. The rise in global energy prices should continue to impact producer costs in regions such as Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). , North America, Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. , India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. , and China,
which may impact global operating rates Operating rateThe percentage of total production capacity of a company, industry, or country that is being used. operating rate The portion of capacity at which a business operates. . Global potash fundamentals are expected to remain strong in the second half of 2005 supported by continued demand growth and limited new supply additions. Offshore demand for potash continues to increase in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite an anticipated reduction in Brazilian imports in 2005. Phosphate market fundaments have improved in the past three months due to strong offshore demand and a subsequent reduction in U.S. producer inventories. Phosphate import demand growth outside of Brazil and China is expected to support phosphate markets in the second half of 2005. The expansion of China's domestic phosphate industry is potentially the largest source of short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. uncertainty. OTHER Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North and South America. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled release fertilizers and micronutrients This is a list of micronutrients. Vitamins
Incremental cost is additional or increased cost of an item or service apart from its actual cost. expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities. Certain statements in this press release constitute forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the management discussion and analysis section of the Corporation's most recent annual report to shareholders, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, weather conditions, the future supply, demand, price level and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of natural gas, future prices of nitrogen, phosphate and potash, the differential pricing of natural gas in various markets, the future gas prices and gas availability at Kenai, the exchange rates for U.S., Canadian, Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. , and Chilean currencies, South American government policy, South American domestic fertilizer consumption, China's urea trade policies and volumes, future fertilizer inventory levels, future nitrogen, potassium potassium (pətăs`ēəm), a metallic chemical element; symbol K [Lat. kalium=alkali]; at. no. 19; at. wt. 39.0983; m.p. 63.25°C;; b.p. 760°C;; sp. gr. .862 at 20°C;; valence +1. and phosphate consumption in North America, future crop prices, future levels of nitrogen imports into North America and future additional fertilizer capacity and operating rates. Agrium disclaims any intention or obligation to update or revise any forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. information as a result of new information or future events. A WEBSITE SIMULCAST Simulcast is a portmanteau of "simultaneous broadcast", and refers to programs or events broadcast across more than one medium, or more than one service on the same medium, at the same time. of the 2005 2nd Quarter Conference Call will be available in a listen-only mode beginning Wednesday Wednesday: see week. , July 27th at 1:30 p.m. MT (3:30 p.m. ET). Please visit the following website: www.agrium.com
SECOND QUARTER 2005
INTERIM FINANCIAL STATEMENTS
FOR THE SIX MONTHS ENDED JUNE 30, 2005
AGRIUM INC.
Consolidated Statements of Operations and Retained Earnings
(Millions of U.S. dollars, except per share information)
(Unaudited)
Three months Six months
ended ended
June 30, June 30,
--------------- ---------------
2005 2004 2005 2004
--------------- ---------------
Restated Restated
(note 2) (note 2)
Sales $ 1,239 $ 1,055 $ 1,815 $ 1,519
Direct freight 59 44 98 73
--------------- ---------------
Net sales 1,180 1,011 1,717 1,446
Cost of product 805 728 1,171 1,021
--------------- ---------------
Gross profit 375 283 546 425
--------------- ---------------
Expenses
Selling, general and administrative 94 77 165 143
Depreciation and amortization 38 39 76 77
Royalties and other taxes 12 8 22 14
Other expenses (income) 7 32 7 33
--------------- ---------------
151 156 270 267
--------------- ---------------
Earnings before interest expense and
income taxes 224 127 276 158
Interest on long-term debt 11 16 25 33
Other interest 1 2 1 2
--------------- ---------------
Earnings before income taxes 212 109 250 123
--------------- ---------------
Current income taxes 64 32 75 37
Future income taxes 15 3 18 1
--------------- ---------------
Income taxes 79 35 93 38
--------------- ---------------
Net earnings 133 74 157 85
--------------- ---------------
Retained earnings - beginning of
period (as reported) 416 155 398 145
Cumulative change in accounting
policy (note 2) - (3) (6) (4)
--------------- ---------------
Retained earnings - beginning of
period (as restated) 416 152 392 141
Common share dividends declared (7) (7) (7) (7)
Common share repurchase (note 4) (30) - (30) -
--------------- ---------------
Retained earnings - end of period $ 512 $ 219 $ 512 $ 219
--------------- ---------------
--------------- ---------------
Earnings per share (note 7)
Basic $ 1.01 $ 0.56 $ 1.19 $ 0.65
Diluted $ 0.99 $ 0.52 $ 1.18 $ 0.60
AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
Three months Six months
ended ended
June 30, June 30,
--------------- ---------------
2005 2004 2005 2004
--------------- ---------------
Restated Restated
Operating (note 2) (note 2)
Net earnings $ 133 $ 74 $ 157 $ 85
Items not affecting cash
Depreciation and amortization 38 39 76 77
Gain on disposal of assets and
investments 2 - 2 (1)
Future income taxes 15 3 18 1
Foreign exchange 1 5 (2) (2)
Other 2 3 11 6
Net change in non-cash working capital (31) (99) 23 (40)
--------------- ---------------
Cash provided by operating activities 160 25 285 126
--------------- ---------------
Investing
Capital expenditures (32) (22) (53) (35)
Increase in other assets (1) (3) (9) (5)
Proceeds from disposal of assets and
investments 1 1 2 2
Net change in non-cash working
capital - - (11) -
Other - - - 2
--------------- ---------------
Cash used in investing activities (32) (24) (71) (36)
--------------- ---------------
Financing
Common shares 17 2 26 3
Common share repurchase (40) - (40) -
Long-term debt (9) (9) (21) (91)
Bank indebtedness 5 - 5 1
Common share dividends paid - - (7) (7)
Preferred securities repayment - - (175) -
--------------- ---------------
Cash used in financing activities (27) (7) (212) (94)
--------------- ---------------
Increase (decrease) in cash and cash
equivalents 101 (6) 2 (4)
Cash and cash equivalents -
beginning of period 326 202 425 200
--------------- ---------------
Cash and cash equivalents - end of
period $ 427 $ 196 $ 427 $ 196
--------------- ---------------
--------------- ---------------
AGRIUM INC.
Consolidated Balance Sheet
(Millions of U.S. dollars)
(Unaudited)
As at As at
June 30, December 31,
--------------- ---------------
2005 2004 2004
------- ------- --------
Restated Restated
ASSETS (note 2) (note 2)
Current assets
Cash and cash equivalents $ 427 $ 196 $ 425
Accounts receivable 489 436 388
Inventories 419 394 447
Prepaid expenses 47 48 56
------- ------- --------
1,382 1,074 1,316
Property, plant and equipment 1,204 1,197 1,239
Other assets 83 74 82
Future income tax assets 25 - 24
------- ------- --------
$ 2,694 $ 2,345 $ 2,661
------- ------- --------
------- ------- --------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 10 $ - $ -
Accounts payable and accrued
liabilities 541 483 472
Current portion of long-term debt 55 46 60
------- ------- --------
606 529 532
Long-term debt
Recourse debt 470 498 471
Non-recourse debt 55 99 69
Preferred securities (note 2, 3) - 175 175
------- ------- --------
525 772 715
Other liabilities 259 198 257
Future income tax liabilities 225 134 209
------- ------- --------
1,615 1,633 1,713
------- ------- --------
Shareholders' equity
Share capital
Authorized: unlimited common shares
Issued: common shares:
2005 - 132 million
(June 2004 - 131 million,
December 2004 - 132 million) (note 4) 571 544 553
Contributed surplus 3 1 2
Retained earnings 512 219 392
Cumulative translation adjustment (7) (52) 1
------- ------- --------
1,079 712 948
------- ------- --------
$ 2,694 $ 2,345 $ 2,661
------- ------- --------
------- ------- --------
AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
For the six months ended June 30, 2005
(Millions of U.S. dollars, except per share amounts)
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES The Corporation's accounting policies are in accordance with accounting principles generally accepted in Canada and are consistent with those outlined in the annual audited financial statements except where stated below. These interim consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge do not include all disclosures normally provided in annual financial statements and should be read in conjunction with the Corporation's audited consolidated financial statements for the year ended December December: see month. 31, 2004. In management's opinion, the interim consolidated financial statements include all adjustments necessary to present fairly such information. Certain comparative figures have been reclassified to conform to Verb 1. conform to - satisfy a condition or restriction; "Does this paper meet the requirements for the degree?" fit, meet coordinate - be co-ordinated; "These activities coordinate well" the current year's presentation. 2. CHANGE IN ACCOUNTING POLICY Effective January January: see month. 1, 2005, the Corporation adopted the revised Canadian accounting standards for disclosure and presentation of financial instruments. The amendment requires obligations that must or could be settled with a variable number of the entity's own equity instruments to be classified as liabilities. Consequently, the Corporation reclassified from equity to liabilities its eight percent preferred securities, redeemed re·deem tr.v. re·deemed, re·deem·ing, re·deems 1. To recover ownership of by paying a specified sum. 2. To pay off (a promissory note, for example). 3. February 14, 2005 and its six percent preferred securities, converted to common shares in January 2004. This change was applied retroactively ret·ro·ac·tive adj. Influencing or applying to a period prior to enactment: a retroactive pay increase. [French rétroactif, from Latin with restatement Restatement A revision in a company's earlier financial statements. Notes: The need for restating financial figures can result from fraud, misrepresentation, or a simple clerical error. of prior periods. The effect of the adoption on prior periods and the cumulative impact of retroactive Having reference to things that happened in the past, prior to the occurrence of the act in question. A retroactive or retrospective law is one that takes away or impairs vested rights acquired under existing laws, creates new obligations, imposes new duties, or attaches a restatement as at the date of adoption are presented below as increases (decreases):
As at As at
June 30, December 31,
--------------- ---------------
2004 2004
--------------- ---------------
Balance Sheet
Other assets $ 5 $ 5
Long-term debt 175 175
Future income tax liabilities 4 8
Preferred securities (172) (172)
Retained earnings (2) (6)
Three months Six months
ended June 30, ended June 30,
--------------- ---------------
2004 2004
--------------- ---------------
Income Statement
Interest on long-term debt $ 3 $ 7
Future income tax expense (2) (5)
Earnings per share
Net earnings available for basic
earnings per share 1 2
Basic earnings per share - 0.02
Diluted earnings per share - -
3. PREFERRED SECURITIES On February 14, 2005, the Corporation redeemed the $175-million, eight percent redeemable Redeemable Eligible for redemption under the terms of an indenture. preferred securities for cash. The redemption price Redemption price See: Call price redemption price 1. The price at which an open-end investment company will buy back its shares from the owners. In most cases, the redemption price is the net asset value per share. 2. was equal to the principal amount of the securities plus accrued ac·crue v. ac·crued, ac·cru·ing, ac·crues v.intr. 1. To come to one as a gain, addition, or increment: interest accruing in my savings account. 2. and unpaid interest to the date of redemption. In January 2004, pursuant to the Corporation's plan to redeem the six percent preferred securities, all holders of the convertible, redeemable preferred securities elected e·lect v. e·lect·ed, e·lect·ing, e·lects v.tr. 1. To select by vote for an office or for membership. 2. To pick out; select: elect an art course. to convert the securities into common shares at the stated conversion price Stated conversion price At the time of issuance of a convertible security, the price the issuer effectively grants the securityholder to purchase the common stock, equal to the par value of the convertible security divided by the conversion ratio. of $11.9677 per share, resulting in the issuance of an additional 4.18 million common shares. 4. SHARE CAPITAL On April 28, 2005, the Corporation announced approval of a normal course issuer bid to repurchase up to 13 million of its common shares (approximately 10 percent of the Corporation's issued and outstanding common shares). Shares will be repurchased for cancellation cancellation (See: cancel) CANCELLATION. Its general acceptation, is the act of crossing a writing; it is used sometimes to signify the manual operation of tearing or destroying the instrument itself. Hyde v. Hyde, 1 Eq. Cas. Abr. 409; Rob. on the open market between May 3, 2005 and May 2, 2006 at the Corporation's discretion and funded from existing cash. During the quarter, the Corporation repurchased for cancellation 2,046,400 of its common shares at an average price per share of $19.34, resulting in a net cost of $40-million. The repurchases resulted in a reduction of share capital of $10-million. The excess net cost over the average book value of the shares of $30-million has been recorded as a reduction of retained earnings Retained Earnings The percentage of net earnings not paid out in dividends, but retained by the company to be reinvested in its core business or to pay debt. It is recorded under shareholders equity on the balance sheet. . 5. EMPLOYEE FUTURE BENEFITS The total net employee future benefits expense for the Corporation's pension and post-retirement benefit plans are computed as follows:
Three months ended Six months ended
June 30, June 30,
------------------- -----------------
2005 2004 2005 2004
------------------- -----------------
Defined benefit pension plans $ 2 $ 2 $ 4 $ 4
Post-retirement benefit plans 1 1 3 3
Defined contribution pension plans 2 2 7 7
---------- -------- ------- --------
Total expense $ 5 $ 5 $ 14 $ 14
---------- -------- ------- --------
---------- -------- ------- --------
6. STOCK-BASED COMPENSATION The Corporation began prospectively expensing the fair value of stock options granted in 2003 over their vesting Vesting The process by which employees accrue non-forfeitable rights over employer contributions that are made to the employee's qualified retirement plan account. Notes: period. In accordance with the prospective method of adoption, the Corporation has recorded no compensation expense for stock options granted prior to January 1, 2003 and will continue to provide pro forma As a matter of form or for the sake of form. Used to describe accounting, financial, and other statements or conclusions based upon assumed or anticipated facts. The phrase pro forma disclosure of the effect on net earnings and earnings per share had the fair value been expensed. The following table summarizes the pro forma disclosure for stock options granted prior to 2003 that have not been expensed.
Three months ended June 30,
--------------------------------------------------
2005 2004
------------------------ ------------------------
As Reported Pro forma As Reported Pro forma
------------------------ ------------------------
Restated Restated
(note 2) (note 2)
Net earnings $ 133 $ 133 $ 74 $ 73
Earnings per share
Basic $ 1.01 $ 1.00 $ 0.56 $ 0.56
Diluted $ 0.99 $ 0.99 $ 0.52 $ 0.51
Six months ended June 30,
--------------------------------------------------
2005 2004
------------------------ ------------------------
As Reported Pro forma As Reported Pro forma
------------------------ ------------------------
Restated Restated
(note 2) (note 2)
Net earnings $ 157 $ 156 $ 85 $ 83
Earnings per share
Basic $ 1.19 $ 1.18 $ 0.65 $ 0.64
Diluted $ 1.18 $ 1.17 $ 0.60 $ 0.59
7. EARNINGS PER SHARE
The following table summarizes the computation of net earnings per
share:
Three months ended Six months ended
June 30, June 30,
------------------- -----------------
2005 2004 2005 2004
------------------- -----------------
Restated Restated
Numerator: (note 2) (note 2)
Net earnings and numerator
for basic earnings per share $ 133 $ 74 $ 157 $ 85
------------------- -----------------
Preferred securities charges
(net of tax) - 1 - 2
------------------- -----------------
Numerator for diluted earnings
per share 133 75 157 87
------------------- -----------------
Denominator - weighted average
common shares outstanding:
For basic earnings per share 132 131 132 130
------------------- -----------------
Dilutive instruments:
Stock options (a) 2 1 2 1
Preferred securities
converted to common shares:
$175-million, eight percent
(note 3)(a) - 13 - 13
------------------- -----------------
For diluted earnings per share 134 145 134 144
------------------- -----------------
------------------- -----------------
Basic earnings per share $1.01 $0.56 $1.19 $0.65
Diluted earnings per share $0.99 $0.52 $1.18 $0.60
(a) For diluted earnings per share, these dilutive instruments are
added back only when the impact of the instrument is dilutive to
basic earnings per share.
There were 132 million common shares outstanding at June 30, 2005 (2004 - 131 million). As at June 30, 2005, the Corporation has outstanding approximately seven million (2004 - nine million) options and options with tandem (Tandem Computers Inc., Cupertino, CA) A former major manufacturer of fault-tolerant computers founded in 1974 by James Treybig and provider of the early 21st century technology for HP's enterprise computing strategy. stock appreciation rights to acquire common shares. 8. SEASONALITY The fertilizer and agricultural retail businesses are seasonal in nature. Sales are concentrated in the spring and fall planting seasons while produced inventories are accumulated ac·cu·mu·late v. ac·cu·mu·lat·ed, ac·cu·mu·lat·ing, ac·cu·mu·lates v.tr. To gather or pile up; amass. See Synonyms at gather. v.intr. To mount up; increase. throughout the year. Cash collections generally occur after the planting seasons in North and South America. 9. SEGMENTED INFORMATION The Corporation's primary activity is the production and wholesale marketing of nitrogen, potash and phosphate and the retail sales of fertilizers, chemicals and other agricultural inputs and services. The Corporation operates principally in Canada, the United States and South America. Net sales between segments are accounted for at prices, which approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. fair market value and are eliminated on consolidation. The reportable segment entitled en·ti·tle tr.v. en·ti·tled, en·ti·tling, en·ti·tles 1. To give a name or title to. 2. To furnish with a right or claim to something: "Other" includes Corporate functions and inter-segment eliminations.
Schedule 1
AGRIUM INC.
Segmentation
(Unaudited - millions of U.S. dollars)
Three Months Ended June 30
-----------------------------------------------------
Wholesale
---------------------------------
Retail North America South America
-----------------------------------------------------
2005 2004 2005 2004 2005 2004
-----------------------------------------------------
Net sales
- external $ 513 $ 490 $ 626 $ 488 $ 41 $ 33
- inter-segment - - 34 27 4 3
-----------------------------------------------------
Total net sales 513 490 660 515 45 36
Cost of product 394 372 436 378 15 10
-----------------------------------------------------
Gross profit 119 118 224 137 30 26
Gross profit % 23% 24% 34% 27% 67% 72%
-----------------------------------------------------
-----------------------------------------------------
Selling Expenses $ 63 $ 61 $ 5 $ 4 $ - $ -
EBITDA (1) $ 55 $ 57 $ 203 $ 102 $ 29 $ 25
EBIT (2) $ 51 $ 52 $ 175 $ 74 $ 25 $ 21
Three Months Ended June 30
-----------------------------------------------------
Other Total
-----------------------------------------------------
2005 2004 2005 2004
-----------------------------------------------------
Net sales
- external $ - $ - $ 1,180 $ 1,011
- inter-segment (38) (30) - -
-----------------------------------------------------
Total net sales (38) (30) 1,180 1,011
Cost of product (40) (32) 805 728
-----------------------------------------------------
Gross profit 2 2 375 283
Gross profit % (5%) (7%) 32% 28%
-----------------------------------------------------
-----------------------------------------------------
Selling Expenses $ - $ (1) $ 68 $ 64
EBITDA (1) $ (25) $ (18) $ 262 $ 166
EBIT (2) $ (27) $ (20) $ 224 $ 127
Six Months Ended June 30
-----------------------------------------------------
Wholesale
---------------------------------
Retail North America South America
-----------------------------------------------------
2005 2004 2005 2004 2005 2004
-----------------------------------------------------
Net sales
- external $ 692 $ 645 $ 966 $ 748 $ 59 $ 53
- inter-segment - - 62 43 5 4
-----------------------------------------------------
Total net sales 692 645 1,028 791 64 57
Cost of product 522 480 695 572 20 17
-----------------------------------------------------
Gross profit 170 165 333 219 44 40
Gross profit % 25% 26% 32% 28% 69% 70%
-----------------------------------------------------
-----------------------------------------------------
Selling Expenses $ 114 $ 109 $ 9 $ 8 $ - $ -
EBITDA (1) $ 56 $ 56 $ 300 $ 167 $ 42 $ 38
EBIT (2) $ 48 $ 47 $ 243 $ 110 $ 34 $ 31
Six Months Ended June 30
-----------------------------------------------------
Other Total
-----------------------------------------------------
2005 2004 2005 2004
-----------------------------------------------------
Net sales
- external $ - $ - $ 1,717 $ 1,446
- inter-segment (67) (47) - -
-----------------------------------------------------
Total net sales (67) (47) 1,717 1,446
Cost of product (66) (48) 1,171 1,021
-----------------------------------------------------
Gross profit (1) 1 546 425
Gross profit % 1% (2%) 32% 29%
-----------------------------------------------------
-----------------------------------------------------
Selling Expenses $ (1) $ (1) $ 122 $ 116
EBITDA (1) $ (46) $ (26) $ 352 $ 235
EBIT (2) $ (49) $ (30) $ 276 $ 158
(1) Earnings (loss) before interest expense, income taxes,
depreciation, amortization and asset impairment.
(2) Earnings (loss) before interest expense and income taxes.
Schedule 2a
AGRIUM INC.
Product Lines
Three Months Ended June 30, 2005
(Unaudited - millions of U.S. dollars)
2005
---------------------------------------------------
Sales Selling
Net Gross Tonnes Price Margin
Sales Profit (000's) ($/Tonne) ($/Tonne)
---------------------------------------------------
North America
Wholesale
Nitrogen (1)
Ammonia $ 213 $ 65 681 $ 313 $ 95
Urea 171 62 604 283 103
Nitrate, Sulphate
and Other 105 31 490 214 63
---------------------------------------------------
Total Nitrogen 489 158 1,775 275 89
Phosphate 96 21 342 280 61
Potash (2) 75 45 468 160 96
---------------------------------------------------
660 224 2,585 255 87
South America
Wholesale (1) 45 30 154 292 195
Retail (3)
Fertilizers 246 55
Chemicals 189 33
Other 78 31
------------------
513 119
Other inter-segment
eliminations (38) 2
------------------
Total $ 1,180 $ 375
------------------
2004
---------------------------------------------------
Sales Selling
Net Gross Tonnes Price Margin
Sales Profit (000's) ($/Tonne) ($/Tonne)
---------------------------------------------------
North America
Wholesale
Nitrogen (1)
Ammonia $ 136 $ 37 506 $ 269 $ 73
Urea 140 29 683 205 42
Nitrate, Sulphate
and Other 97 25 521 186 48
---------------------------------------------------
Total Nitrogen 373 91 1,710 218 53
Phosphate 85 19 336 253 57
Potash (2) 57 27 510 112 53
---------------------------------------------------
515 137 2,556 201 54
South America
Wholesale (1) 36 26 190 189 137
Retail (3)
Fertilizers 236 57
Chemicals 185 32
Other 69 29
------------------
490 118
Other inter-segment
eliminations (30) 2
Total $ 1,011 $ 283
------------------
(1) International nitrogen sales were 523,000 tonnes (2004 -
533,000); net sales were $136-million (2004 - $87-million) and
gross profit was $80-million (2004 - $40-million).
(2) International potash sales were 198,000 tonnes (2004 - 199,000);
net sales were $27-million (2004 - $18-million) and gross profit
was $18-million (2004 - $10-million).
(3) International Retail net sales were $28-million (2004 -
$29-million) and gross profit was $6-million (2004 - $7-million).
Schedule 2b
AGRIUM INC.
Product Lines
Six Months Ended June 30, 2005
(Unaudited - millions of U.S. dollars)
2005
---------------------------------------------------
Sales Selling
Net Gross Tonnes Price Margin
Sales Profit (000's) ($/Tonne) ($/Tonne)
---------------------------------------------------
North America
Wholesale
Nitrogen (1)
Ammonia $ 288 $ 76 954 $ 302 $ 80
Urea 297 98 1,106 269 89
Nitrate, Sulphate
and Other 169 46 787 215 58
---------------------------------------------------
Total Nitrogen 754 220 2,847 265 77
Phosphate 141 31 500 282 62
Potash (2) 133 82 869 153 94
---------------------------------------------------
1,028 333 4,216 244 79
South America
Wholesale (1) 64 44 238 269 185
Retail (3)
Fertilizers 340 78
Chemicals 257 55
Other 95 37
------------------
692 170
Other inter-segment
eliminations (67) (1)
------------------
Total $ 1,717 $ 546
------------------
2004
---------------------------------------------------
Sales Selling
Net Gross Tonnes Price Margin
Sales Profit (000's) ($/Tonne) ($/Tonne)
---------------------------------------------------
North America
Wholesale
Nitrogen (1)
Ammonia $ 210 $ 60 788 $ 266 $ 76
Urea 206 45 983 210 46
Nitrate, Sulphate
and Other 143 37 762 188 49
---------------------------------------------------
Total Nitrogen 559 142 2,533 221 56
Phosphate 128 30 499 257 60
Potash (2) 104 47 949 110 50
---------------------------------------------------
791 219 3,981 199 55
South America
Wholesale (1) 57 40 294 194 136
Retail (3)
Fertilizers 315 77
Chemicals 245 53
Other 85 35
------------------
645 165
Other inter-segment
eliminations (47) 1
------------------
Total $ 1,446 $ 425
------------------
(1) International nitrogen sales were 801,000 tonnes (2004 -
852,000); net sales were $191-million (2004 - $154-million) and
gross profit was $107-million (2004 - $71-million).
(2) International potash sales were 428,000 tonnes (2004 - 357,000);
net sales were $54-million (2004 - $30-million) and gross profit
was $36-million (2004 - $16-million).
(3) International Retail net sales were $41-million (2004 -
$39-million) and gross profit was $7-million (2004 - $9-million).
AGRIUM INC. (TSX:AGU) (NYSE:AGU) |
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