Agrium Announces First Quarter Results-Revenues up 17%; Gross Margin up 56%.Business Editors 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--(BUSINESS WIRE)--April 30, 2003 ALL AMOUNTS ARE STATED IN U.S.$ 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. (NYSE NYSE See: New York Stock Exchange :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 ) (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension :AGU) announced today that its net loss for the first quarter ended March 31, 2003, was $6-million ($0.07 per common share), a significant improvement over the loss of $36-million ($0.33 per common share) for the first quarter of 2002. "We were able to achieve better than expected results due to very strong global 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. prices," said John Van Brunt brunt n. 1. The main impact or force, as of an attack. 2. The main burden: bore the brunt of the household chores. , Agrium's Vice Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The first quarter is typically a slow quarter as we build inventory for the 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. spring season. However current prices, particularly for nitrogen, suggest we will have our strongest second quarter in a number of years." HIGHLIGHTS -- Due primarily to improving nitrogen fundamentals, Agrium is forecasting second quarter earnings of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.50 per common share, consistent with First Call consensus. This would result in first half earnings of $0.43 per common share, a substantial improvement over 2002 first half loss of $0.16 per share. -- Despite mechanical problems, the Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. nitrogen ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. plant was operated at 98 percent capacity and the urea plant at 80 percent of capacity in the first quarter. A backup urea heat exchange unit was installed ahead of schedule and is currently being tested to improve operating reliability going forward.
KEY INDICATORS
The following Table summarizes certain key commodity prices affecting
the Company's profitability:
---------------------------------------------------------------------
Q1 2003 Q1 2002 2002 Year
---------------------------------------------------------------------
Grain prices (U.S.$/bushel)
Wheat (#2 Soft Red St. L
- weekly averages) $3.38 $2.94 $3.22
Corn (#2 Yellow
- weekly averages) $2.32 $1.93 $2.17
---------------------------------------------------------------------
Natural Gas (U.S.$/MMBtu)
NYMEX (last three day
average price) $6.60 $2.38 $3.25
Agrium (average cost) $3.57 $2.39 $2.47
---------------------------------------------------------------------
Nitrogen Prices (U.S.$/metric tonne)
Black sea urea (prilled) $ 127 $ 97 $ 94
NOLA urea (granular) $ 181 $ 110 $ 127
Agrium urea (average realized price) $ 169 $ 118 $ 131
---------------------------------------------------------------------
A significant year-over-year increase in grain prices is contributing to improved fundamentals for the agricultural Industry. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. natural gas prices are also up significantly, although Agrium's gas cost has not increased as much. The result is that Agrium is better positioned to benefit from increased nitrogen prices, in the above Table shown as urea. 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 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: RESULTS Agrium's consolidated earnings before interest expense and income taxes (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) was $6-million for the first quarter, up $42-million from the loss of $36-million in 2002. This increase in earnings is attributed to improved nitrogen profitability in both the North and 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. Wholesale operations and the negative impact of the Argentine peso The peso (originally established as the nuevo peso argentino or peso convertible) is the currency of Argentina. Its ISO 4217 code is ARS, and the symbol used locally for it is $ (to avoid confusion, Argentines frequently use US$, devaluation devaluation, decreasing the value of one nation's currency relative to gold or the currencies of other nations. It is usually undertaken as a means of correcting a deficit in the balance of payments. on the 2002 results. Business Unit Discussion North America Wholesale -- EBIT rose $18-million due to: -- Higher selling prices for nitrogen as a result of tightening global supply / demand balance, 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. global supply disruptions in Venezuela Venezuela (vĕnəzwā`lə, Span. vānāswā`lä), officially the Bolivarian Republic of Venezuela, republic (2005 est. pop. 25,375,000), 352,143 sq mi (912,050 sq km), N South America. and 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. and significant 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 in North American natural gas prices which resulted in a number of temporary shutdowns throughout the industry during the first quarter. -- Agrium's cost of product sold was only slightly impacted by the volatility in North American natural gas prices in the first quarter as the majority of the product sold was produced prior to the increase in natural gas prices. -- The Alaskan nitrogen facility produced 141,000 tonnes of net ammonia and 177,000 tonnes of urea during the first quarter, somewhat better than anticipated due to spot gas purchases. -- 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 margins improved during the first quarter of 2003 due to higher selling prices, primarily driven by higher sulphur Sulphur, city, United States Sulphur, city (1990 pop. 20,125), Calcasieu parish, SW La.; inc. 1914. It is a trade center for an area producing natural gas, oil, and timber as well as sorghum, soybeans, cattle, and crawfish. and ammonia input costs facing the major Southern U.S. producers. North America Retail -- EBIT expanded $2-million due to: -- Improved 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. prices and higher chemical sales and rebates. South America Wholesale -- EBIT jumped $28-million due to: -- South America Wholesale benefited from higher global nitrogen pricing relative to its fixed base-price natural gas costs. In addition, the agricultural market in 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. has recovered significantly since the economic uncertainty which followed the unpegging of the Argentine peso from the U.S. dollar in early 2002. -- 2003 results reflect a strengthening Argentine peso, resulting in a translation gain of $3-million. 2002 results reflected $12-million in translation losses. Financial Cash flow from operating activities for the first quarter was $34-million compared to $2-million in 2002. This improvement reflects the improved operating results in the quarter. OUTLOOK As Agrium moves into the busy spring season and looks toward the second quarter and second half of 2003, there are a number of factors that may have a positive impact on results: -- The fundamentals of improved crop prices, a 20-year low global grain stocks-to-use ratio, improved 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. demand in South America America [for Amerigo Vespucci], the lands of the Western Hemisphere—North America, Central (or Middle) America, and South America. The world map published in 1507 by Martin Waldseemüller is the first known cartographic use of the name. and Asia and limited new global nitrogen production coming on-stream on-stream adv. & adj. In or into operation or production. over the next few years remain positive factors for the Industry. -- Early in 2003, moisture moisture wetness due to any liquid; usually refers to water as a component, e.g. in feed. moisture free a substance heated at 220°F (105°C) to constant weight. Called also oven-dry or 100% dry matter. conditions improved significantly over previous years for Agrium's key markets, especially Western 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 . -- Statistics Canada recently issued their planting intentions report indicating a small increase in total seeded acreage this spring and a 14 percent increase in canola canola see brassicanapus. acreage, which tends to use more inputs than other crops. -- North America nitrogen inventories remain low due to reduced North America production. Imports into North America also remain below levels experienced in 2001 when natural gas prices spiked spike 1 n. 1. a. A long, thick, sharp-pointed piece of wood or metal. b. A heavy nail. 2. A spikelike part or projection, as: a. causing production shutdowns. At the end of March, North American producer inventories were over 25 percent below the previous five-year average. Inventories were significantly reduced due to a number of temporary industry shutdowns when natural gas prices peaked in late February February: see month. and early March 2003. Offsetting these positive indicators are some negative factors that may adversely impact second quarter and second half results: -- Second quarter cost of product sold is expected to reflect higher gas costs experienced in the first quarter. However, Agrium's North American gas cost was 20 percent lower than NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). average for first quarter 2003. In addition, Agrium continues to benefit from low-cost gas at its Alaskan and Argentine nitrogen facilities. -- The U.S. Department of Agriculture (USDA USDA, n.pr See United States Department of Agriculture. ) has released the prospective plantings intentions and is now forecasting corn acres to be flat year-over-year as compared to an earlier forecasted increase of 1.4 million acres for 2003. The reasons for this revision (programming) revision - A release of a piece of software which is not a major release or a bugfix, but only introduces small changes or new features. included dry conditions in the western Corn Belt at the time of the planting survey and higher input costs facing farmers. Since that time moisture conditions have improved. Corn is the highest user of nutrients among the major row crops. -- To increase the global competitiveness particularly in light of natural gas supply issues with Union Oil Company of California California (kăl'ĭfôr`nyə), most populous state in the United States, located in the Far West; bordered by Oregon (N), Nevada and, across the Colorado River, Arizona (E), Mexico (S), and the Pacific Ocean (W). (Unocal), Agrium will be reducing staff levels at its Alaskan nitrogen facility. This will improve the facility's efficiency and operating costs operating costs npl → gastos mpl operacionales and continue to allow the facility to operate at capacity given adequate gas supplies. While this will result in severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when costs in the second quarter, fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). will be lower going forward. -- Argentine Presidential elections on April 27, 2003 were inconclusive INCONCLUSIVE. What does not put an end to a thing. Inconclusive presumptions are those which may be overcome by opposing proof; for example, the law presumes that he who possesses personal property is the owner of it, but evidence is allowed to contradict this presumption, and show who is and until election run-offs are completed, the uncertain political environment could result in economic volatility, especially regarding exchange rates. 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 America and Argentina. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and 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. . Agrium's strategy is to grow through incremental Additional or increased growth, bulk, quantity, number, or value; enlarged. 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 Corporation's annual report to shareholders for 2002, 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 Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. 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, the future supply and demand for fertilizers, the future prices of nitrogen, phosphate and potash, the level and volatility of natural gas prices, the differential pricing of natural gas in various markets, the outcome of the dispute between the Corporation and Unocal, the future gas prices and availability at Kenai Kenai may refer to:
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 2003 1st Quarter Conference Call will be available in a listen-only mode beginning Thursday Thursday: see week. , May 1 at 8:30 a.m. MDT MDT abbr. Mountain Daylight Time MDT (in the US and Canada) Mountain Daylight Time MDT n abbr (US) (= mountain daylight time) → (10:30 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT ). Please visit the following website: www.agrium.com
AGRIUM INC.
Consolidated Statements of Operations and Retained Earnings
(Millions of U.S. dollars except per share information)
(Unaudited)
Three months ended
March 31,
---------------------
2003 2002
---------------------
Sales $ 395 $ 338
Direct freight 23 20
---------------------
Net sales 372 318
Cost of product 261 247
---------------------
Gross profit 111 71
---------------------
Expenses
Selling, general and
administrative 60 52
Depreciation, depletion and
amortization 31 34
Royalties and other taxes 5 6
Other expenses and Argentine charges 9 15
---------------------
105 107
---------------------
Earnings (loss) before interest
expense and income taxes 6 (36)
Interest on long-term debt 15 15
Other interest 1 4
---------------------
Loss before income taxes (10) (55)
Current income tax recovery - 8
Future income tax recovery 4 11
---------------------
Income taxes 4 19
---------------------
Net loss (6) (36)
Retained earnings - beginning of
period 191 245
Preferred securities charges (3) (3)
---------------------
Retained earnings - end of period $ 182 $ 206
---------------------
---------------------
Basic loss per common share ($0.07) ($0.33)
Average outstanding shares (in millions) 126 117
Diluted loss per common share ($0.07) ($0.33)
Average outstanding shares (in millions) 126 117
Shares outstanding at end of
period (in millions) 126 126
AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
Three months ended
March 31,
----------------------
2003 2002
----------------------
Operating:
Net loss $ (6) $ (36)
Depreciation, depletion and
amortization 31 34
Future income tax recovery (4) (11)
Argentine charges (3) 11
Net changes in non-cash working capital 16 4
----------------------
Cash provided by operating activities 34 2
----------------------
Investing:
Capital assets (8) (5)
Other assets 3 -
Proceeds from disposal of assets
and investments 4 -
Other 3 1
----------------------
Cash provided by (used in)
investing activities 2 (4)
----------------------
Financing:
Common shares - 106
Bank indebtedness issue (repayment) 1 (137)
Repayment of long-term debt - (1)
Common share dividends paid (7) (6)
Preferred securities charges paid (3) (3)
----------------------
Cash used in financing activities (9) (41)
----------------------
Increase (decrease) in cash and
cash-equivalents 27 (43)
Cash and cash-equivalents - beginning
of period 109 51
----------------------
Cash and cash-equivalents - end of period $ 136 $ 8
----------------------
----------------------
AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
As at As at
March 31, December 31,
---------------- ------------
2003 2002 2002
---------------- ------------
(Unaudited)
ASSETS
Current assets
Cash and cash-equivalents $ 136 $ 8 $ 109
Accounts receivable 198 184 187
Inventories 545 507 353
Prepaid expenses 29 46 35
------- ------- ------------
908 745 684
Capital assets 1,414 1,462 1,400
Other assets 87 111 85
Goodwill - 45 -
------- ------- ------------
$ 2,409 $ 2,363 $ 2,169
------- ------- ------------
------- ------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 2 $ 74 $ 1
Accounts payable and accrued
liabilities 536 448 340
Income and other taxes payable 1 5 -
Current portion of long-term debt 101 6 25
------- ------- ------------
640 533 366
Long-term debt
Recourse debt 530 619 604
Non-recourse debt - Profertil 132 141 132
------- ------- ------------
662 760 736
Other liabilities 149 139 140
Future income taxes 164 150 163
------- ------- ------------
1,615 1,582 1,405
------- ------- ------------
Shareholders' equity
Share capital
Authorized: unlimited common shares and preferred securities
Issued:
Common shares:
2003 - 126 million (2002 - 126
million) 485 482 484
Preferred securities:
8% Non-convertible: 2003 - 7 million
(2002 - 7 million) 171 171 171
6% Convertible: 2003 - 2 million
(2002 - 2 million) 50 50 50
Retained earnings 182 206 191
Cumulative translation adjustment (94) (128) (132)
------- ------- ------------
794 781 764
------- ------- ------------
$ 2,409 $ 2,363 $ 2,169
------- ------- ------------
------- ------- ------------
AGRIUM INC. Summarized Notes to the 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 For the three months ended March 31, 2003 (Millions of U.S. dollars, except per share amounts) (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES The Corporation's accounting policies are 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 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 do not include all disclosures normally provided in annual financial statements and should be read in conjunction conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. with the Corporation's audited consolidated financial statements for the year ended December December: see month. 31, 2002. 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. The interim consolidated financial statements include the accounts of Agrium Inc. and its subsidiaries. 2. STOCK BASED COMPENSATION Following is the 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 net loss and basic loss per share had the Corporation expensed the fair value of stock based compensation in each period:
Three months ended
March 31,
---------------------------------------------
2003 2002
---------------------- ----------------------
As Reported Pro forma As Reported Pro forma
---------------------- ----------------------
Net loss $ (6) $ (8) $ (36) $ (37)
Loss per common share
Basic $ (0.07) $ (0.08) $ (0.33) $(0.34)
3. LOSS PER COMMON SHARE The following table summarizes the computation Computation is a general term for any type of information processing that can be represented mathematically. This includes phenomena ranging from simple calculations to human thinking. of net loss per common share:
Three months ended
March 31,
------------------
2003 2002
------------------
Numerator:
Net loss $ (6) $ (36)
Preferred securities charges net of tax (3) (3)
-----------------
Numerator for basic and diluted loss per share $ (9) $ (39)
-----------------
-----------------
Denominator:
Weighted average denominator for basic and diluted
common shares (in millions) 126 117
-----------------
-----------------
Basic loss per share $(0.07) $(0.33)
Diluted loss per share $(0.07) $(0.33)
As at March 31, 2003, the Corporation has outstanding approximately ten million options to acquire common shares. 4. SEASONALITY The fertilizer business is 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 America and after harvest (tool, networking) Harvest - A highly scalable, customisable system for discovering resources on the Internet. Version: 1.3. http://tardis.ed.ac.uk/harvest/. in South America. 5. 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 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. and Argentina. 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 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.
AGRIUM INC.
Segmented Earnings (Loss) Before Interest Expense and Income Tax
(Millions of U.S. dollars)
(Unaudited)
Three months ended March 31,
------------------------------------------------------
2003
------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external
customers $ 219 $ 126 $ 20 $ 7 $ - $ 372
- internal
customers 16 - 1 - (17) -
------------------------------------------------------
Total net sales 235 126 21 7 (17) 372
Cost of product 180 84 6 6 (15) 261
------------------------------------------------------
Gross profit 55 42 15 1 (2) 111
Gross profit % 23% 33% 71% 14% 12% 30%
Expenses:
Selling, general
and administrative 7 45 1 2 5 60
Depreciation,
depletion and
amortization 21 5 3 - 2 31
Royalties and other
taxes 4 1 - - - 5
Other (income)
expenses and
Argentine
charges 9 (3) (3) - 6 9
------------------------------------------------------
41 48 1 2 13 105
------------------------------------------------------
Earnings (loss)
before interest
expense and
income taxes $ 14 $ (6) $ 14 $(1) $(15) $ 6
------------------------------------------------------
------------------------------------------------------
AGRIUM INC.
Segmented Earnings (Loss) Before Interest Expense and Income Tax
(Millions of U.S. dollars)
(Unaudited)
Three months ended March 31,
--------------------------------------------------------------------
2002
--------------------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external
customers $ 192 $ 114 $ 9 $ 3 $ - $ 318
- internal
customers 13 - - - (13) -
------------------------------------------------------
Total net sales 205 114 9 3 (13) 318
Cost of product 175 78 6 1 (13) 247
------------------------------------------------------
Gross profit 30 36 3 2 - 71
Gross profit % 15% 32% 33% 67% 0% 22%
Expenses:
Selling, general
and
administrative 7 41 1 2 1 52
Depreciation,
depletion and
amortization 21 5 4 1 3 34
Royalties and
other taxes 4 1 - - 1 6
Other (income)
expenses and
Argentine
charges 2 (3) 12 (3) 7 15
------------------------------------------------------
34 44 17 - 12 107
------------------------------------------------------
Earnings (loss)
before interest
expense and
income taxes $ (4) $ (8) $ (14) $ 2 $ (12)$ (36)
------------------------------------------------------
------------------------------------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars, except margin per tonne amounts)
(Unaudited)
Three months ended March 31,
-----------------------------------------------
2003
-----------------------------------------------
Tonnes (000's)
-------------
Net Cost of Gross Margin
Sales Product Profit Sales Inventory ($/Tonne)
-----------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 49 $ 39 $ 10 246 329 $ 41
Urea 70 55 15 409 324 37
Nitrate and other 26 22 4 154 274 26
-----------------------------------------------
Total Nitrogen 145 116 29 809 927 36
Phosphate - Dry 32 26 6 151 138 40
Phosphate - Liquid 15 12 3 46 25 65
Potash 32 20 12 340 267 35
Sulphate and other
products 11 6 5 58 184 86
-----------------------------------------------
235 180 55 1,404 1,541 39
-------------------------
North America
Retail
Fertilizers 59 43 16
Chemicals 55 34 21
Other products and
services 12 7 5
---------------------
126 84 42
South America
Wholesale
Nitrogen 20 6 14 139 67 101
Other products and
services 1 - 1
---------------------
21 6 15
South America
Retail
Fertilizers 3 3 -
Other products and
services 4 3 1
---------------------
7 6 1
Other (17) (15) (2)
---------------------
Total $ 372 $ 261 $ 111
---------------------
---------------------
Three months ended March 31,
-----------------------------------------------
2002
-----------------------------------------------
Tonnes (000's)
-------------
Net Cost of Gross Margin
Sales Product Profit Sales Inventory ($/Tonne)
-----------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 33 $ 30 $ 3 262 429 $ 11
Urea 56 53 3 466 388 6
Nitrate and other 26 25 1 193 307 5
-----------------------------------------------
Total Nitrogen 115 108 7 921 1,124 8
Phosphate - Dry 31 29 2 165 188 12
Phosphate - Liquid 10 9 1 31 20 32
Potash 36 21 15 367 312 41
Sulphate and
other products 13 8 5 83 128 60
-----------------------------------------------
205 175 30 1,567 1,772 19
-------------------------
North America Retail
Fertilizers 56 41 15
Chemicals 45 29 16
Other products
and services 13 8 5
---------------------
114 78 36
South America Wholesale
Nitrogen 9 6 3 86 54 35
Other products
and services - - -
---------------------
9 6 3
South America Retail
Fertilizers 1 - 1
Other products
and services 2 1 1
---------------------
3 1 2
Other (13) (13) -
---------------------
Total $ 318 $ 247 $ 71
---------------------
---------------------
AGRIUM INC.
Net sales and Gross Profit by Market Destination
(Millions of U.S. dollars, except margin per tonne amounts)
(Unaudited)
Three months ended March 31,
-----------------------------------------------
2003
-----------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-----------------------------------------------
North America
Nitrogen $ 104 $ 86 $ 18 17% 529 $ 34
Phosphate 47 38 9 19% 197 46
Potash 21 15 6 29% 204 29
Sulphate and other
products 10 4 6 60% 45 -
North America
Retail 126 84 42 33% - -
Other (16) (15) (1) 6% - -
----------------------------------------
292 212 80 27% 975
International
Nitrogen 61 36 25 41% 419 60
Potash 11 5 6 55% 136 44
Sulphate and other
products 2 2 - 0% 13 -
South America
Retail 7 6 1 14% - -
Other (1) - (1) 100% - -
----------------------------------------
80 49 31 39% 568
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Total $ 372 $ 261 $ 111 30% 1,543
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Three months ended March 31,
-----------------------------------------------
2002
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Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-----------------------------------------------
North America
Nitrogen $ 77 $ 68 $ 9 12% 533 $ 17
Phosphate 41 38 3 7% 196 15
Potash 24 16 8 33% 225 36
Sulphate and other
products 10 7 3 30% 59 -
North America
Retail 114 78 36 32% - -
Other (13) (13) - 0% - -
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253 194 59 23% 1,013
International
Nitrogen 47 46 1 2% 474 2
Potash 12 5 7 58% 142 49
Sulphate and other
products 3 1 2 67% 23 -
South America
Retail 3 1 2 67% - -
Other - - - 0% - -
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65 53 12 18% 639
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Total $ 318 $ 247 $ 71 22% 1,652
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