Agrium Inc.: Third Quarter Results Impacted by Poor Spring Season.Business Editors NOTE TO EDITORS: ALL AMOUNTS ARE STATED IN U.S.$ 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)--Oct. 30, 2001 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 ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :AGU.) announced today that its net earnings from operations, before the write-down Write-Down Reducing the book value of an asset because it is overvalued compared to the market value. Notes: This is usually reflected in the company's income statement as an expense, thereby reducing net income. of a non-core asset, for the nine months ended September September: see month. 30, 2001, were $40-million ($0.27 per common share), a decline from $60-million ($0.47 per common share) for the same period of 2000. The net loss from operations, before the write-down of a non-core asset, for the third quarter ended September 30, 2001, was $12-million ($0.13 per common share) compared to net earnings of $14-million ($0.10 per common share) for the same period in 2000. During the third quarter, Agrium wrote down the carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. of a non-core asset, resulting in a non-cash after tax charge of $0.04 per share. Net earnings for the nine months ending September 30, 2001, including this one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. , were $35-million ($0.23 per share). The net loss for the quarter ended September 30, 2001, including the one-time write-off was $17-million ($0.17 per share). "The results for the quarter were in line with our expectations given the production curtailments and low prices associated with inventory liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy following the poor spring season," 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 President 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. . "Looking forward there are positive signs pointing to a rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the industry. Natural gas prices are stabilizing stabilizing, v to hold a limb motionless in order to ground its energy; a standard isometric resistance technique, it releases tension and lengthens muscle fibers. at a lower level; future grain prices are improving and an anticipated return to more normal weather conditions across 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. should all lead to a turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. in 2002." There were several key factors which lead to lower third quarter results. Margins were weak, primarily in 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. . Agrium also had a number of production facilities which were either shut down or scaled back during the quarter due to high inventory carry-over The designation of the process by which net operating loss for one year may be applied, as provided by federal tax law, to each of several taxable years following the taxable year of such loss. levels resulting from the poor spring season. This resulted in additional costs during the quarter. Although overall sales volumes were up slightly for the period over the same period in 2000, they reflect the addition of the Profertil S.A. plant 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. , and the 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. assets acquired from the 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) effective September 30, 2000. Natural gas prices have fallen significantly from record highs earlier in 2001. The NYMEX See New York Mercantile Exchange. NYMEX See New York Mercantile Exchange (NYM). , North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. benchmark A performance test of hardware and/or software. There are various programs that very accurately test the raw power of a single machine, the interaction in a single client/server system (one server/multiple clients) and the transactions per second in a transaction processing system. , 3-day average natural gas price reached a peak of $9.79 per MMBtu in January January: see month. and fell to $1.89 per MMBtu by the end of September. Agrium's natural gas costs for the first nine months of 2001 were significantly lower and less volatile With regard to computer memory, it means "temporary" and not "highly changeable," which is the usual meaning of the word. See volatile memory. 1. (programming) volatile - volatile variable. 2. (storage) volatile - See non-volatile storage. than NYMEX as a result of fixed base-price gas supply agreements at 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. and Profertil, Argentina; natural gas hedging hedging, in commerce, method by which traders use two counterbalancing investment strategies so as to minimize any losses caused by price fluctuations. It is generally used by traders on the commodities market. gains realized during the first nine months of 2001; and the lower cost for natural gas in Western Canada
Western Canada, commonly referred to as the West . Agrium's overall gas costs averaged approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $2.61 per MMBtu or 52 percent of NYMEX prices for the first nine months of 2001. Cost of goods sold Cost of goods sold The total cost of buying raw materials, and paying for all the factors that go into producing finished goods. cost of goods sold for the first nine months of 2001, however, reflect the high gas costs inventoried at the end of 2000. OTHER THIRD QUARTER HIGHLIGHTS
-- Kapuskasing, Ontario achieves full production capacity. During
the third quarter the Kapuskasing phosphate rock facility
achieved full production capacity. September production was a
record 86,649 tonnes versus a design capacity of 83,333 tonnes
per month. During the third quarter the cost per tonne of rock
declined significantly.
-- Production re-starts. The Fort Saskatchewan, Alberta ammonia
facility and the Homestead, Nebraska ammonium nitrate facility
were both re-started during the quarter. In addition, a
portion of the plant at Kennewick, Washington was restarted in
mid-September and the facility is currently producing at
approximately 20 percent of capacity. Additional production
units at Kennewick are expected to be re-started in early
November and overall the plant will operate at approximately
85 percent of capacity through the end of the fourth quarter
and into 2002.
-- Conda, Idaho plant upgrade on stream and PPA unit completed.
The Conda phosphate upgrade project came on stream at the
beginning of August 2001. This start-up resolved production
inefficiencies which resulted from the failure of one of the
three phosphoric acid tank digesters in October 2000. The
purified phosphoric acid (PPA) unit that was built by Astaris
LLC and will be operated by Agrium has been completed. First
production from the facility was shipped in August. The PPA
unit is currently ramping up toward full capacity of 80,000
tonnes of PPA per year. The final stage of the plant upgrade
will occur in the fourth quarter with the installation of an
oxidization unit to remove organics from the rock.
-- Cogeneration power facility launched at Carseland, Alberta. On
September 25th, Agrium, in partnership with TransCanada
Pipelines Limited, announced the start-up phase of an
80-megawatt natural gas fired cogeneration power plant
adjacent to Agrium's Carseland facility. The Carseland
facility will be the primary user of the power under a 20-year
agreement, while additional power will be consumed by other
Agrium nitrogen facilities in Alberta.
-- After-tax write-off of non-core asset totalling $5-million.
During the third quarter, Agrium decided to close a small
facility in Henry, Illinois which was part of the specialty
product business. This facility produced fertilizer containing
all three nutrients in a single granule. This product, once
the industry standard for agriculture, has been replaced over
the years by bulk blended product. Alternative markets for
Henry's product have not provided the volume of sales
necessary to justify its continued operations. This is a
one-time non-cash charge to depreciation, depletion and
amortization, totalling $7-million before-tax, $5-million
after tax ($0.04 per common share).
-- Agrium appoints new director to the board. Dr. Susan A. Henry
was appointed to Agrium's Board of Directors effective
September 27, 2001. Dr. Henry is the Dean of the College of
Agriculture and Life Sciences, Cornell University in Ithaca,
New York. She brings to the Board of Directors many years of
experience with various committees, boards and professional
societies related to agricultural science.
OUTLOOK Fertilizer demand is expected to recover over the balance of the 2000/2001 fertilizer year due to an anticipated shift back into corn and wheat wheat, cereal plant of the genus Triticum of the family Gramineae (grass family), a major food and an important commodity on the world grain market. Wheat Varieties and Their Uses acreage in the U.S., an improvement in world grain prices, lower input costs for North American farmers, depleted de·plete tr.v. de·plet·ed, de·plet·ing, de·pletes To decrease the fullness of; use up or empty out. [Latin d soil 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. levels in the U.S., and based on a return to more normal weather conditions and total acres planted across North America. However, the continued dry conditions in the western portion of the Canadian Prairies The Canadian prairies is a large area of flat sedimentary land stretching throughout western Canada between the Canadian Shield in the east and the Canadian Rockies. The Canadian prairies – the portion of the Great Plains landform that supports various grasses and shrubs and the U.S. Pacific Northwest For names and places containing the slightly longer word 'northwestern' (or variants), see . Northwest or north west is the ordinal direction halfway between north and west on a compass. It is the opposite of southeast. will likely reduce fall fertilizer demand in these regions. The significant drop in North American gas prices and a return to more normal inventory levels have brought back most of the previously idled North American capacity. Current nitrogen prices in North America are also discouraging dis·cour·age tr.v. dis·cour·aged, dis·cour·ag·ing, dis·cour·ag·es 1. To deprive of confidence, hope, or spirit. 2. To hamper by discouraging; deter. 3. imports and will likely mean North American imports will drop significantly for the balance of the 2000/2001 fertilizer year. China's long-awaited agreement to enter into the World Trade Organization could mean increased import volumes, both in nitrogen 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 , as well as increased transparency (1) The quality of being able to see through a material. The terms transparency and translucency are often used synonymously; however, transparent would technically mean "seeing through clear glass," while translucent would mean "seeing through frosted glass." See alpha blending. and stability. The trade and access rules on fertilizer and agriculture are expected to take effect in early 2002. Agrium continues to believe that the shortfall Shortfall The amount by which the capital required to fulfill a financial obligation exceeds available capital. Notes: Shortfall risk is often combated with an efficient hedging strategy created by a fund, group, institution, or individual. in new nitrogen production capacity relative to forecast growth in fertilizer usage will result in a tightening balance between supply and demand in the medium term. 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 Overview Earnings before interest and income taxes (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ), including the non-cash write-down of a non-core asset of $7-million, were $105-million for the nine months ended September 30, 2001, down $13-million or 11 percent from the same period in 2000. North America Wholesale EBIT was $80-million for the first nine months of 2001, a decrease of 26 percent over the same period in 2000. 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. EBIT for Wholesale was $3-million, compared to a loss of $1-million in the same period of 2000, which reflected the increased sales from the start up of the Profertil S.A. nitrogen facility. Losses before interest and taxes for the quarter ended September 30, 2001, were $15-million compared to EBIT of $30-million for the same quarter of 2000. North America Wholesale losses before interest and taxes, including the non-cash write-down of $7-million, were $30-million compared to EBIT of $23-million in 2000 while South America Wholesale was unchanged from the comparable quarter in 2000. North America Retail continues to increase its earnings year-over-year, recording EBIT of $49-million for the first nine months of 2001, a $4-million increase over the same period in 2000. South America Retail EBIT for the first nine months of 2001 was $3-million, an improvement from a loss of $3-million in 2000. For the quarter ended September 30, 2001, EBIT for North America Retail was $14-million, an increase of $2-million over the same quarter in 2000, while South America Retail was unchanged for the quarter compared to the prior year. Segmented Results The following commentary 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 segmented financial and operating data tables attached. North America - Wholesale Sales volumes for the first nine months of 2001 increased 20 percent for nitrogen compared to the same period in 2000, however sales volumes for both 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. were lower by 31 percent and 14 percent, respectively. For the quarter ended September 30, 2001, nitrogen sales volumes increased by 39 percent over the comparable period in 2000 while phosphate and potash sales volumes declined by 42 percent and eight percent respectively. Nitrogen sales increased as a result of the production assets purchased from Unocal in September 2000 at Kenai, Alaska, Kennewick, Washington Kennewick is a city in Benton County in southeastern Washington. It is the most populous of the three cities collectively referred to as the Tri-Cities (the others being Pasco and Richland). and West Sacramento, California West Sacramento is a city in Yolo County, California. It is contiguous with Sacramento, but is separated by the Sacramento River and is in a different county. It is one of the fastest growing cities in the county. . Phosphate and potash volumes declined due to generally weaker demand. For the first nine months of 2001, Agrium's average realized nitrogen prices were up 24 percent compared to the same period in 2000, largely reflecting the pass through of higher natural gas prices, however prices for the quarter declined by seven percent compared to the same quarter in 2000. Potash prices were largely unchanged year-over-year and for the quarter, while phosphate prices improved slightly year-over-year, but declined seven percent for the quarter ended September 30, 2001 compared to the same quarter in 2000. Nitrogen cost of product sold for the nine months and quarter ended September 30, 2001 were 29 percent and 23 percent higher respectively than during the same periods in 2000 due to higher inventoried natural gas costs partially carried over from the prior year. Phosphate production costs for the first nine months of 2001 increased 15 percent compared to the first nine months of 2000 due to the impact of higher 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. and power costs and production inefficiencies associated with a digester di·gest·er n. 1. One that makes a digest. 2. Chemistry A vessel in which substances are softened or decomposed, usually for further processing. Noun 1. failure at the Conda facility in October October: see month. 2000. During the third quarter the Conda facility resumed full production with the completion of the PPA PPA 1. Palpation, Percussion & Ausculation 2. Pittsburgh pneumonia agent 3. Postpartum amenorrhea 4. Price per accession 5. Pure pulmonary atresia unit. The phosphate rock phosphate rock n. Any of various rocks composed largely of phosphate minerals, especially apatite, used as fertilizer and as a source of phosphorous compounds. facility at Kapuskasing Kapuskasing (kăpəskā`sĭng), town (1991 pop. 10,344), central Ont., Canada, on the Kapuskasing River, N of Timmins. It has lumbering and pulp and paper mills, a cold-weather automotive testing center, and a large tourism industry. , Ontario Ontario, city, United States Ontario, city (1990 pop. 133,179), San Bernardino co., S Calif., near Los Angeles, in a region of vineyards; inc. 1891. also fully resolved its start-up Start-up The earliest stage of a new business venture. issues during the quarter and achieved full production. As a result, dry phosphate costs have returned to 2000 levels in the quarter. Further production cost reductions are expected for the fourth quarter, 2001. Potash costs for both the quarter and the nine months ended September 30, 2001 were higher year-over-year as a result of lower production volumes and higher natural gas costs. Overall, North America Wholesale reported gross profit of $200-million and $21-millon for the nine months and quarter ended September 30, 2001, respectively, representing increases of six percent over the nine-month period and a decrease of 57 percent for the quarter compared to the previous year. Nitrogen was the main contributor, generating gross profit of $139-million and $5-million respectively for the nine months and quarter ended September 30, 2001, compared to $100-million and $29-million respectively during the same periods in 2000. Phosphate gross profit declined $18-million for the year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. and $4-million for the quarter compared to the same periods in 2000. Gross profit for potash also declined $12-million year-over-year and $1-million for the quarter compared to the prior year primarily due to lower international sales. Other expenses have increased over 2000 for both the quarter and year-to-date reflecting shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down costs for facilities until market conditions improve. North America - Retail For the first nine months of 2001, North America Retail EBIT increased $4-million over the same period in 2000. Nine-month revenues are up two percent due to higher fertilizer prices and increased seed sales are partially offset by lower chemical usage. Margins of 30 percent are one percent higher while selling expenses are up two percent over the previous year. Retail EBIT for the quarter ended September 30, 2001, has increased by $2-million over the previous year for the same reasons. South America - Wholesale Results for South America Wholesale for the first nine months of 2001 continue to reflect the start-up of the Profertil S.A. facility. During the third quarter, Profertil achieved a new one-day production record of 2,245 tonnes per day for ammonia (110 percent of design) and 3,616 tonnes per day for urea (111 percent of design). Gross profit for the first nine months of 2001 was $20-million on sales of $54-million, compared to gross profit of $2-million on sales of $7-million for the first nine months of 2000. For the quarter ended September 30, 2001, gross profit was $7-million compared to $3-million in 2000. South America - Retail Gross profit for South America Retail increased to $19-million and $10-million respectively for the nine months and quarter ended September 30, 2001. These results compare to $12-million and $6-million respectively for the same periods in 2000, reflecting the general improvement in the retail agricultural sector in Argentina and the continuing expansion of Agrium's customer base. Other Other represents the corporate functions and inter-segment eliminations. Other's loss before interest and taxes for the nine months and quarter ended September 30, 2001, were $30-million and $3-million respectively, slightly better than in 2000. Interest expense Interest expense for the nine months and the quarter ended September 30, 2001, has increased $28-million and $9-million respectively from the same periods in 2000. This is due to increased debt levels related to the acquisition of Unocal's fertilizer assets, discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of the capitalization capitalization n. 1) the act of counting anticipated earnings and expenses as capital assets (property, equipment, fixtures) for accounting purposes. 2) the amount of anticipated net earnings which hypothetically can be used for conversion into capital assets. of interest in relation to Profertil S.A. and increased 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. indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. caused by higher inventory levels. Financial Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before changes in working capital for the nine months ended September 30, 2001, was $116-million ($0.95 per common share) compared to $145-million ($1.24 per common share) for the first nine months of 2000. Cash flow from operations for the third quarter ended September 30, 2001, was $17-million ($0.13 per common share) compared to $55-million ($0.47 per common share) for the third quarter of 2000. Working capital at September 30, 2001, was $228-million, an increase of $229-million from the prior year which reflects increased input costs in the production of nitrogen fertilizers, primarily natural gas and power, and issuance of long-term financing Long-term financing Liabilities repayable in more than one year plus equity. to repay short-term indebtedness relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Profertil S.A. and the Unocal fertilizer acquisition. In the first quarter, Agrium issued $125-million, 8.25 percent debentures due February February: see month. 15, 2011. The proceeds from this issue were used to retire retire v. 1) to stop working at one's occupation. 2) to pay off a promissory note, and thus "retire" the loan. 3) for a jury to go into the jury room to decide on a verdict after all evidence, argument and jury instructions have been completed. the majority of the short-term indebtedness incurred by the acquisition of Unocal's fertilizer assets, with the remaining amount being retired on May 25, 2001, utilizing existing credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities . In addition, Profertil S.A. repaid its bridge financing Bridge Financing A method of financing, used by companies before their IPO, to obtain necessary cash for the maintenance of operations. Notes: These funds are usually supplied by the investment bank underwriting the new issue. facility, which expired ex·pire v. ex·pired, ex·pir·ing, ex·pires v.intr. 1. To come to an end; terminate: My membership in the club has expired. 2. March 30, 2001, by drawing the majority of funds available under a permanent 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. syndicated financing which expires March 31, 2011, and by using short-term advances from the owners. Agrium has guaranteed 50 percent of the amounts outstanding under this agreement until completion guarantees on the plant have been released which is anticipated to occur before December December: see month. 31, 2001. At this time the project financing Project financing A form of asset-based financing in which a firm finances a discrete set of assets on a stand-alone basis. of $146-million (Agrium's share) will become non-recourse. During the second quarter Agrium increased its financing flexibility. On May 25, 2001, Agrium entered into a new unsecured Unsecured A loan or equity interest that is given without any guarantee of payment, performance, satisfaction or opportunity for return from the recipient. No property, interest or security is used as collateral in either a guarantee or a pledge. three-year term $300-million syndicated working capital credit facility. On June June: see month. 26, 2001, Agrium filed a base shelf prospectus A document, notice, circular, advertisement, letter, or communication in written form or by radio or television that offers any security for sale, or confirms the sale of any security. 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 for unsecured debentures in the amount of CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $500-million. The shelf prospectus expires in 25 months, and any proceeds drawn under this facility would be used to replace short-term bank indebtedness and for general corporate purposes. OTHER Agrium Inc. is a leading global producer and marketer of fertilizer and a major retail supplier of agricultural products and services in both North America and Argentina. Agrium produces and markets four primary groups of fertilizers: nitrogen, phosphate, potash and 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. . 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, uncertainties and other factors 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, fluctuations in supply and demand of fertilizer, changes in natural gas and other input costs, changes in capital and foreign exchange markets, unexpected agricultural or environmental conditions and government policy changes.
A WEBSITE SIMULCAST
of the 3rd Quarter Conference Call will be available in a
listen-only mode beginning
October 31 at 8:30 a.m. MDT (10:30 a.m. EDT)
Please log in the following website: www.agrium.com
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AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
(Unaudited)
As at As at
September 30, December 31,
----------------- --------------
2001 2000 2000
----------------- --------------
(Audited)
ASSETS
Current assets
Cash and cash-equivalents $ - $ - $ 18
Accounts receivable 259 317 275
Income and other taxes receivable - 9 28
Inventories 439 313 347
Prepaid expenses 22 18 20
-------- -------- ------------
720 657 688
Capital assets 1,476 1,460 1,484
Other assets 177 130 150
Goodwill 46 50 49
-------- -------- ------------
$ 2,419 $ 2,297 $ 2,371
-------- -------- ------------
-------- -------- ------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 201 $ 408 $ 308
Accounts payable and
accrued liabilities 284 250 370
Income and other taxes payable 6 - -
Current portion of long-term debt 1 - 1
-------- -------- ------------
492 658 679
Long-term debt
Profertil project financing 146 - -
Other 629 501 507
-------- -------- ------------
775 501 507
Other liabilities 127 116 120
Future income taxes 167 170 197
-------- -------- ------------
1,561 1,445 1,503
-------- -------- ------------
Shareholders' equity
Share capital
Authorized: unlimited common shares and preferred securities
Issued:
Common shares: 2001- 115 million
(September 30, 2000-114 million) 376 373 375
Preferred securities:
8% Non-convertible 2001- 7 million
(September 30, 2000- 7 million) 171 171 171
6% Convertible 2001- 2 million
(September 30, 2000-2 million) 50 50 50
Retained earnings 335 302 315
Cumulative translation adjustment (74) (44) (43)
-------- -------- ------------
858 852 868
-------- -------- ------------
$ 2,419 $ 2,297 $ 2,371
-------- -------- ------------
-------- -------- ------------
As at September 30, 2001, the Corporation has outstanding
7,836,930 options to acquire common shares.
The six percent convertible preferred securities are convertible
into 4,177,912 common shares.
AGRIUM INC.
Consolidated Statements of Operations and Retained Earnings
(Millions of U.S. dollars except per share information)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2001 2000 2001 2000
------------------ -----------------
Net sales $ 410 $ 378 $ 1,594 $ 1,387
Cost of product 306 259 1,151 988
------------------- -------------------
Gross profit 104 119 443 399
------------------- -------------------
Expenses
Selling, general
and administrative 68 62 199 187
Depreciation, depletion
and amortization 43 26 106 76
Other expense 8 1 33 18
------------------- -------------------
119 89 338 281
------------------- -------------------
Earnings (loss) before
interest expense and
income taxes (15) 30 105 118
Interest on long-term debt 15 9 40 27
Other interest 3 - 15 -
------------------- -------------------
Earnings (loss) before
income taxes (33) 21 50 91
Income taxes (16) 7 15 31
------------------- -------------------
Net earnings (loss)
for the period (17) 14 35 60
Retained earnings -
beginning of period 355 290 315 255
Common share
dividends declared - - (6) (6)
Preferred securities
charges (3) (2) (9) (7)
------------------- -------------------
Retained earnings -
end of period $ 335 $ 302 $ 335 $ 302
------------------- -------------------
------------------- -------------------
Basic earnings per
common share ($0.17) $0.10 $0.23 $0.47
Average outstanding
shares (in millions) 115 112 115 112
Diluted earnings per
common share ($0.17) $0.10 $0.23 $0.47
Average outstanding
shares (in millions) 115 113 117 118
Shares outstanding at end
of period (in millions) 115 114 115 114
AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2001 2000 2001 2000
------------------ -----------------
Operating:
Net earnings (loss)
for the period $ (17) $ 14 $ 35 $ 60
Depreciation, depletion
and amortization 43 26 106 76
Future income taxes (9) 15 (25) 9
------------------- -------------------
Cash provided by operating
activities, before changes
in non-cash working
capital 17 55 116 145
Net changes in
non-cash working capital (29) (115) (131) (58)
------------------- -------------------
Cash provided by (used in)
operating activities (12) (60) (15) 87
------------------- -------------------
Investing:
Capital assets (35) (42) (119) (124)
Purchase Unocal
Fertilizer Assets - (246) - (246)
Other assets (4) (5) (34) (26)
Net changes in non-cash
working capital - 6 - (22)
Proceeds from disposal of
assets and investments 1 - 2 10
Other (2) - 3 3
------------------- -------------------
Cash used in
investing activities (40) (287) (148) (405)
------------------- -------------------
Financing:
Bank indebtedness 18 250 (107) 229
Long-term debt 1 - 271 4
Common share dividends paid (6) (6) (13) (12)
Preferred securities
charges paid (1) (2) (6) (7)
------------------- -------------------
Cash provided by
financing activities 12 242 145 214
------------------- -------------------
Increase in cash position (40) (105) (18) (104)
Cash and cash-equivalents -
beginning of period 40 105 18 104
------------------- -------------------
Cash and cash-equivalents -
end of period $ - $ - $ - $ -
------------------- -------------------
------------------- -------------------
AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
(Millions of U.S. dollars)
(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. These accounting policies 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 financial statements for the year ended December 31, 2000. In management's opinion, the unaudited financial information includes all adjustments (consisting solely of normal recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. adjustments) necessary to present fairly such information. Interim results are not necessarily indicative indicative: see mood. of the results expected for the fiscal year. 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 consolidated financial statements include the accounts of Agrium Inc. and its subsidiaries. 2. CHANGE IN ACCOUNTING POLICY Earnings Per Share - Section 3500 In 2000, The Canadian Institute of Chartered Accountants The Canadian Institute of Chartered Accountants (CICA) is the umbrella body for the Chartered Accountant profession in Canada and Bermuda. Membership of the CICA totals 70,000 Chartered Accountants and 8,500 students. issued a new accounting standard, 3500, "Earnings Per Share." The new standard requires the use of the treasury stock method for calculating 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 . Under this method all options whose exercise price is less than or equal to the average share price for the period to date are considered outstanding and all convertible securities are converted at the average share price during the period unless a fixed conversion price is specified spec·i·fy tr.v. spec·i·fied, spec·i·fy·ing, spec·i·fies 1. To state explicitly or in detail: specified the amount needed. 2. To include in a specification. 3. . This method no longer requires the calculation of supplementary fully diluted earnings per share. The Corporation has adopted this section 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 all previous periods, effective January 1, 2001. Diluted earnings per share of $0.10 for the third quarter ended September 30, 2000, and $0.47 for the nine months ended September 30, 2000, were previously reported under the fully diluted earnings per share method as $0.10 and $0.46, respectively. For the ye ar ended December 31, 2000, the diluted earnings per share computed under this method would have been $0.64 compared to fully diluted earnings per share of $0.63 computed under the previous standard. 3. LONG-TERM DEBT Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. $125-million 8.25 percent debentures due February 15, 2011 In February 2001, the Corporation issued $125-million of unsecured 8.25 percent debentures due February 15, 2011. Proceeds from this issue were used to repay short-term indebtedness. Interest is paid semi-annually on February 15 and August 15. The debentures require the Corporation to maintain certain covenants.
AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
(Millions of U.S. dollars)
(Unaudited)
Profertil S.A. $300-million syndicated credit agreement In 2000, Profertil S.A. entered into a $300-million syndicated credit agreement, the majority of which was drawn on March 29, 2001, to repay the $285-million bridge financing facility that expired on March 30, 2001. The Corporation has guaranteed 50 percent of the amounts outstanding under the syndicated credit agreement until completion guarantees on the plant have been released, at which time the agreement will become non-recourse. The Corporation's share of amounts outstanding under the Credit Agreement at September 30, 2001, was $146-million. $300-million syndicated credit facility On May 25, 2001, the Corporation entered into an unsecured three-year term $300-million syndicated credit facility, which is guaranteed by the Corporation's subsidiary, Agrium U.S. Inc. This facility replaces the $100-million term loan facility and $25-million demand operating facility, which the Corporation had with a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. Chartered Bank Chartered Bank A financial institution whose primary roles are to accept and safeguard monetary deposits from individuals and organizations, and to lend money out. The details vary from country to country, but usually a chartered bank in operation has obtained government permission . CDN$500-million base shelf prospectus On June 26, 2001, the Corporation filed a CDN$500-million base shelf prospectus with a 25-month term for unsecured debentures in Canada. No amounts have been drawn under this facility. 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, phosphate, sulphate sulphate: see sulfate. and other fertilizer products, 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 South America. 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. Other includes the Corporate functions and inter-segment eliminations.
AGRIUM INC.
(Millions of U.S. dollars)
(Unaudited)
Segmented EBIT for the three months ended September 30,
-------------------------------------------------------
2001
-------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external
customers $ 183 $ 175 $ 20 $ 32 $ - $ 410
- internal
customers 14 - 4 - (18) -
--------------------------------------------------
Total net sales 197 175 24 32 (18) 410
Cost of product 176 111 17 22 (20) 306
--------------------------------------------------
Gross profit 21 64 7 10 2 104
Expenses:
Selling, general
and administrative 8 47 2 5 6 68
Depreciation,
depletion and
amortization 32 5 3 1 1 42
Other (income)
expense-net 11 (2) 2 - (2) 9
--------------------------------------------------
51 50 7 6 5 119
--------------------------------------------------
Earnings before
interest expense and
income taxes $ (30) $ 14 $ - $ 4 $ (3) $ (15)
--------------------------------------------------
--------------------------------------------------
Segmented EBIT for the three months ended September 30,
-------------------------------------------------------
2000
-------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external
customers $ 176 $ 172 $ 4 $ 26 $ - $ 378
- internal
customers 13 - - - (13) -
--------------------------------------------------
Total net sales 189 172 4 26 (13) 378
Cost of product 140 111 1 20 (13) 259
--------------------------------------------------
Gross profit 49 61 3 6 - 119
Expenses:
Selling, general
and administrative 7 46 3 1 5 62
Depreciation,
depletion and
amortization 17 5 - 1 3 26
Other (income)
expense-net 2 (2) - - 1 1
--------------------------------------------------
26 49 3 2 9 89
--------------------------------------------------
Earnings before
interest expense and
income taxes $ 23 $ 12 $ - $ 4 $ (9) $ 30
--------------------------------------------------
--------------------------------------------------
Segmented EBIT for the nine months ended September 30,
------------------------------------------------------
2001
------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external
customers $ 807 $ 679 $ 47 $ 61 $ - $1,594
- internal
customers 52 - 7 - (59) -
--------------------------------------------------
Total net sales 859 679 54 61 (59) 1,594
Cost of product 659 477 34 42 (61) 1,151
--------------------------------------------------
Gross profit 200 202 20 19 2 443
Expenses:
Selling, general
and administrative 23 143 5 12 16 199
Depreciation,
depletion and
amortization 73 15 9 4 6 107
Other (income)
expense-net 24 (5) 3 - 10 32
--------------------------------------------------
120 153 17 16 32 338
--------------------------------------------------
Earnings before
interest expense and
income taxes $ 80 $ 49 $ 3 $ 3 $ (30) $ 105
--------------------------------------------------
--------------------------------------------------
Segmented EBIT for the nine months ended September 30,
------------------------------------------------------
2000
------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external
customers $ 670 $ 667 $ 7 $ 43 $ - $1,387
- internal
customers 43 - - - (43) -
--------------------------------------------------
Total net sales 713 667 7 43 (43) 1,387
Cost of product 524 472 5 31 (44) 988
--------------------------------------------------
Gross profit 189 195 2 12 1 399
Expenses:
Selling, general
and administrative 21 140 3 9 14 187
Depreciation,
depletion and
amortization 50 15 - 4 7 76
Other (income)
expense-net 10 (5) - 2 11 18
--------------------------------------------------
81 150 3 15 32 281
--------------------------------------------------
Earnings before
interest expense and
income taxes $ 108 $ 45 $ (1) $ (3) $ (31) $ 118
--------------------------------------------------
--------------------------------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars)
(Unaudited)
Three months ended September 30,
-----------------------------------------------------
2001
-----------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
-------------
Sales Product Profit Sales Production ($/Tonne)
-----------------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 45 $ 40 $ 5 276 352 $ 18
Urea 59 60 (1) 477 448 (2)
Nitrate and
other 29 28 1 200 164 5
-----------------------------------------------------
Total Nitrogen 133 128 5 953 964 5
Phosphate -
Dry 17 18 (1) 95 158 (11)
Phosphate -
Liquid 7 5 2 23 27 87
Potash 28 15 13 280 229 46
Sulphate and
other products 12 10 2 86 74 23
-----------------------------------------------------
197 176 21 1,437 1,452 15
---------------------------
North America Retail
Fertilizers 62 43 19
Chemicals 90 62 28
Other products
and services 23 6 17
------------------------
175 111 64
South America Wholesale
Nitrogen 23 15 8 168 114 48
Other products
and services 1 2 (1)
------------------------
24 17 7
South America Retail
Fertilizers 23 14 9
Other products
and services 9 8 1
------------------------
32 22 10
Other (18) (20) 2
------------------------
Total $ 410 $ 306 $ 104
------------------------
------------------------
Three months ended September 30,
-----------------------------------------------------
2000
-----------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
-------------
Sales Product Profit Sales Production ($/Tonne)
-----------------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 36 $ 27 $ 9 210 351 $ 43
Urea 59 41 18 394 463 46
Nitrate and
other 10 8 2 82 87 24
-----------------------------------------------------
Total Nitrogen 105 76 29 686 901 42
Phosphate -
Dry 31 30 1 167 161 6
Phosphate -
Liquid 13 9 4 37 39 108
Potash 31 17 14 303 224 46
Sulphate and
other products 9 8 1 74 46 14
-----------------------------------------------------
189 140 49 1,267 1,371 39
---------------------------
North America Retail
Fertilizers 59 41 18
Chemicals 88 61 27
Other products
and services 25 9 16
------------------------
172 111 61
South America Wholesale
Nitrogen - - - - - -
Other products
and services 4 1 3
------------------------
4 1 3
South America Retail
Fertilizers 18 14 4
Other products
and services 8 6 2
------------------------
26 20 6
Other (13) (13) -
------------------------
Total $ 378 $ 259 $ 119
------------------------
------------------------
Nine months ended September 30,
-----------------------------------------------------
2001
-----------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
-------------
Sales Product Profit Sales Production ($/Tonne)
-----------------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 248 $ 172 $ 76 1,130 1,268 $ 67
Urea 229 186 43 1,465 1,672 29
Nitrate and
other 118 98 20 727 761 28
-----------------------------------------------------
Total Nitrogen 595 456 139 3,322 3,701 42
Phosphate -
Dry 82 84 (2) 417 487 (5)
Phosphate -
Liquid 29 22 7 82 136 85
Potash 101 58 43 1,000 1,026 43
Sulphate and
other products 52 39 13 231 211 56
-----------------------------------------------------
859 659 200 5,052 5,561 40
---------------------------
North America Retail
Fertilizers 303 217 86
Chemicals 289 218 71
Other products
and services 87 42 45
------------------------
679 477 202
South America Wholesale
Nitrogen 51 31 20 386 334 52
Other products
and services 3 3 -
------------------------
54 34 20
South America Retail
Fertilizers 44 28 16
Other products
and services 17 14 3
------------------------
61 42 19
Other (59) (61) 2
------------------------
Total $1,594 $1,151 $ 443
------------------------
------------------------
Nine months ended September 30,
-----------------------------------------------------
2000
-----------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
-------------
Sales Product Profit Sales Production ($/Tonne)
-----------------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 148 $ 113 $ 35 930 1,006 $ 38
Urea 194 139 55 1,382 1,384 40
Nitrate and
other 51 41 10 446 329 22
-----------------------------------------------------
Total Nitrogen 393 293 100 2,758 2,719 36
Phosphate -
Dry 125 114 11 634 613 17
Phosphate -
Liquid 32 20 12 86 93 140
Potash 116 61 55 1,167 1,099 47
Sulphate and
other products 47 36 11 325 194 34
-----------------------------------------------------
713 524 189 4,970 4,718 38
---------------------------
North America Retail
Fertilizers 274 196 78
Chemicals 310 238 72
Other products
and services 83 38 45
------------------------
667 472 195
South America Wholesale
Nitrogen - - - - - -
Other products
and services 7 5 2
------------------------
7 5 2
South America Retail
Fertilizers 30 21 9
Other products
and services 13 10 3
------------------------
43 31 12
Other (43) (44) 1
------------------------
Total $1,387 $ 988 $ 399
------------------------
------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars)
(Unaudited)
Three months ended September 30,
-----------------------------------------------------
2001
-----------------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-----------------------------------------------------
North America
Nitrogen $ 100 $ 97 $ 3 3% 626 $ 5
Phosphate 24 23 1 4% 118 8
Potash 19 12 7 37% 183 38
Sulphate and
other products 7 6 1 14% 62
North America
Retail 175 111 64 37% -
Other (18) (20) 2 -11% -
------------------------------------------
307 229 78 25% 989
International
Nitrogen 56 46 10 18% 495 20
Potash 9 3 6 67% 97 62
Sulphate and
other products 6 7 (1) -17% 24
South America
Retail 32 22 10 31% -
------------------------------------------
103 78 25 24% 616
------------------------------------------
Total $ 410 $ 307 $ 103 25% 1,605
------------------------------------------
------------------------------------------
Three months ended September 30,
-----------------------------------------------------
2000
-----------------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-----------------------------------------------------
North America
Nitrogen $ 85 $ 60 $ 25 29% 543 $ 46
Phosphate 44 39 5 11% 204 25
Potash 21 13 8 38% 195 41
Sulphate and
other products 4 4 - 0% 37
North America
Retail 172 111 61 35% -
Other (13) (13) - 0% -
------------------------------------------
313 214 99 32% 979
International
Nitrogen 20 16 4 20% 143 28
Potash 10 4 6 60% 108 56
Sulphate and
other products 9 5 4 44% 37
South America
Retail 26 20 6 23% -
------------------------------------------
65 45 20 31% 288
------------------------------------------
Total $ 378 $ 259 $ 119 31% 1,267
------------------------------------------
------------------------------------------
Nine months ended September 30,
-----------------------------------------------------
2001
-----------------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-----------------------------------------------------
North America
Nitrogen $ 462 $ 358 $ 104 23% 2,315 $ 45
Phosphate 111 106 5 5% 499 10
Potash 69 45 24 35% 619 39
Sulphate and
other products 45 33 12 27% 289
North America
Retail 679 477 202 30% -
Other (59) (61) 2 -3% -
------------------------------------------
1,307 958 349 27% 3,722
International
Nitrogen 184 129 55 30% 1,393 39
Potash 32 13 19 59% 381 50
Sulphate and
other products 10 9 1 10% 42
South America
Retail 61 42 19 31% -
------------------------------------------
287 193 94 33% 1,816
------------------------------------------
Total $1,594 $1,151 $ 443 28% 5,538
------------------------------------------
------------------------------------------
Nine months ended September 30,
-----------------------------------------------------
2000
-----------------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-----------------------------------------------------
North America
Nitrogen $ 366 $ 271 $ 95 26% 2,544 $ 37
Phosphate 157 134 23 15% 720 32
Potash 78 45 33 42% 700 47
Sulphate and
other products 38 30 8 21% 260
North America
Retail 667 472 195 29% -
Other (43) (44) 1 -2% -
------------------------------------------
1,263 908 355 28% 4,224
International
Nitrogen 27 22 5 19% 214 23
Potash 38 16 22 58% 467 47
Sulphate and
other products 16 11 5 31% 65
South America
Retail 43 31 12 28% -
------------------------------------------
124 80 44 35% 746
------------------------------------------
Total $1,387 $ 988 $ 399 29% 4,970
------------------------------------------
------------------------------------------
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