Agrium Inc.: Third Quarter Results Meet Expectations While Industry Outlook Improves.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)--Oct. 29, 2002 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 third quarter net earnings were $1-million (a loss of $0.01 per common share), a significant improvement over the net loss of $17-million (a loss of $0.17 per common share) for the third quarter of 2001. This is consistent with First Call consensus estimates of a loss of $0.01 per share. The year-over-year improvement in quarterly earnings reflects the recent strengthening in industry fundamentals. On a year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. basis, however, earnings remain below last year due to the disappointing results for the first six months of 2002. The net loss for the first nine months of 2002 was $12-million (a loss of $0.16 per common share), down from net earnings of $35-million ($0.23 per common share) for the same period in 2001. Third quarter earnings per share were reduced by $0.02 as a result of a one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. 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 certain assets at the Conda 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 operations, partially offset by gains on certain financial instruments. "The third quarter results reflect the improvement in the 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. fundamentals we have been expecting," 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. . "Even though it is a seasonally slow period, prices at the end of the quarter were up significantly. U.S. Gulf Coast 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 urea prices are up approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 25 percent from the spring. Several factors support the improvement in nitrogen fundamentals: North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. inventories remain low; imports into 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. in 2002 are well below historical levels, and grain prices have increased 30 to 40 percent since the spring, signalling strong demand for crop inputs for the upcoming planting season." THIRD QUARTER HIGHLIGHTS -- Natural gas. Natural gas, the major cost component of nitrogen fertilizer has recently increased in price in North America. The current North American natural gas benchmark price at Henry Hub for November is trading in the range of $4.00 to $4.20 per MMBtu, while the average (NYMEX last 3-day) price for the first nine months of 2002 was approximately $3.01 per MMBtu. Agrium's gas cost was lower and less volatile than NYMEX as a result of a cost advantage for natural gas purchased in Western Canada and long-term natural gas supply agreements at Kenai, Alaska and Profertil, Argentina. Agrium's overall gas costs averaged approximately $2.40 per MMBtu or 80 percent of NYMEX prices for the first nine months of 2002. This is in spite of incorporating approximately $41-million in realized hedging losses during the first nine months of 2002. Based on existing contracts in place and the NYMEX forward prices at September 30, 2002 Agrium's overall gas cost for the fourth quarter of 2002 is expected to be $2.60 per MMBtu. This is approximately 65 percent of the NYMEX forward prices for the fourth quarter. -- Unocal Dispute. Agrium continues to dispute with Union Oil Company of California (Unocal) respecting Unocal's gas supply and deliverability obligations, environmental liabilities and the Earn-out payment. Unocal has advised that for reasons including forecasted cold weather and related delivery obligations to third parties it will likely reduce deliveries to Agrium's Kenai, Alaska facility to the rate of approximately 95,000 to 125,000 MMBtu per day during the coming winter months compared to full capacity of 155,000 MMBtu per day. Unocal has indicated that they will resume supplying natural gas at 120,000 MMBtu per day commencing in April 2003. Agrium believes the reduction in natural gas supply over the winter months is attributable to Unocal's decision to deliver gas to another customer under separate contractual obligations through to the end of March 2003. Agrium is seeking recovery against Unocal. As a result of these recent developments, short lead times and winter calls on gas, Agrium has thus far been unable to cover the anticipated winter short fall in gas deliveries. Agrium continues to work with other gas suppliers in Alaska in an effort to mitigate the impact of Unocal's failure to deliver gas. Agrium continues to believe that Unocal has sufficient gas reserves to permit the Kenai facility to run at full capacity in the near to mid-term. Should the requirements of the facility not be met by Unocal or from existing supply sources from other producers, development of new natural gas reserves over the next 18 to 36 months will be required to return the facility to full production capacity. -- Profertil Argentina facility. The Profertil nitrogen facility was shut down October 17, 2002 for repairs, about a month earlier than expected. The facility was initially anticipated to go down November 15th for repairs to the waste heat boiler which had developed a small crack. However, the ammonia plant had to be shut down temporarily on October 17th in order to repair a valve and at this time, the Company took the opportunity to repair the boiler.It is expected to remain down for 30 days. Previously, the facility was down for 19 days during August. Following start-up, the urea plant set a new single-month production record of 102,000 metric tonnes during the month of September. Profertil S.A. is 50 percent owned by Agrium Inc. and 50 percent owned by Repsol YPF, S.A. -- Argentine Charges. The Peso was volatile throughout the first six months of 2002 after it was unpegged from the U.S. dollar at year-end 2001. Since June the Peso has remained relatively stable and closed at 3.75 to 1.0 at September 30, 2002. For the quarter ended September 30, 2002, $3-million gain was recorded due to the Peso translation. For the nine months ended September 30, 2002, the net effect of currency translation and the forced conversion of December 31, 2001 accounts receivable in Argentina (Argentine Charges) was a loss of $5-million. -- Inventory Management. Fort Saskatchewan, Alberta urea unit resumed production in October 2002, reflecting an improved outlook for customer requirements for spring, 2003. The urea unit has been idle since June 2001. -- New Director appointed. Victor J. Zaleschuk was appointed to the Board of Directors effective October 3, 2002. Mr. Zaleschuk, a Calgary resident, is former President and Chief Executive Officer of Nexen Inc. Mr. Zaleschuk is a Chartered Accountant and has significant experience in both senior management and finance roles. -- Change in senior management roles. In October 2002, Agrium announced that John Van Brunt has assumed the role of Vice-Chairman of the Board in addition to his role as Chief Executive Officer. Mr. Frank Proto continues in his role as Chairman of the Board of Directors. Mr. Van Brunt, in his new role as Vice-Chairman, will work with the Board and Management on the development and implementation of new processes dealing with governance issues that are evolving as a result of recent legislative and regulatory requirements. Agrium also announced that Michael Wilson has been appointed President in addition to his role as Chief Operating Officer. -- Write down at Conda phosphate operations. The purified phosphoric acid (PPA) expansion project resulted in certain redundant assets at the Conda, Idaho phosphate operations. This resulted in a one-time write-down of $9-million before tax. OUTLOOK In North America, 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 is expected to improve for 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. year 2002/03 as significantly higher grain prices lead to increased 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 and higher nutrient application. The expected upturn follows a decline in fertilizer use in excess of 20 percent over two years for Western Canada
Western Canada, commonly referred to as the West due to severe drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. and low crop prices. In the large U.S. market, fertilizer use recovered this past year from the decline in 2000/01 returning to more normal levels experienced in the 1999/00 fertilizer year. The major driver for the expected increase in crop nutrients is higher grain prices. Since June June: see month. of this year, global prices have risen substantially in response to concerns about 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 world grain stocks. Poor harvests in many regions of the world have resulted in the projected world grain stocks-to-use ratio to fall to 19 percent, the lowest level since 1975/76. As of mid-October n. 1. the middle part of October. Noun 1. mid-October - the middle part of October period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , U.S. mid-west cash prices for wheat are $4.12 per bushel bushel: see English units of measurement. versus $2.83 at the same time last year. Soybean soybean, soya bean, or soy pea, leguminous plant (Glycine max, G. soja, or Soja max) of the family Leguminosae (pulse family), native to tropical and warm temperate regions of Asia, where it has been prices are also up to $5.32 per bushel versus $4.10 at the same time last year. Cash prices for corn are up to $2.46 per bushel from $1.81 at the same time last year and have rallied over the past few months from a low of $1.87 per bushel in early May. Weather continues to play an important role in determining seasonal demand in Agrium's key markets. A large area of Western Canada over the past two years has experienced one of the worst droughts on record, significantly impacting both yields and fertilizer use. Crop yields on the Prairies prairies, generally level, originally grass-covered and treeless plains of North America, stretching from W Ohio through Indiana, Illinois, and Iowa to the Great Plains region. are expected to be down 15 percent on average from last year. In certain areas, the poor crops will lead to some nutrient 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. to the upcoming growing season growing season, period during which plant growth takes place. In temperate climates the growing season is limited by seasonal changes in temperature and is defined as the period between the last killing frost of spring and the first killing frost of autumn, at which . Fortunately, 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 have improved over the past few months. Precipitation precipitation, in chemistry precipitation, in chemistry, a process in which a solid is separated from a suspension, sol, or solution. In a suspension such as sand in water the solid spontaneously precipitates (settles out) on standing. across most locations in the Prairies for the months of August and September September: see month. were well above normal levels. Average total precipitation in Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. , for example, was 200 percent of normal for the month of August. Continued precipitation at or above normal levels would lead to much better planting conditions for the next growing season. While demand appears to be strengthening, supplies remain relatively tight. North American nitrogen inventories remained 20 percent below the 5-year average at the end of September 2002 while offshore imports, which were down 15 percent in fertilizer year 2001/02, are expected to decline further in 2002/03. Offshore imports are expected to decline as international prices and demand strengthen. Lower nitrogen inventories and higher than expected gas pricing this fall should help to tighten the supply situation. 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 world nitrogen production capacity relative to forecast growth in demand will result in a further tightening balance between supply and demand in the medium-term which should bode bode 1 v. bod·ed, bod·ing, bodes v.tr. 1. To be an omen of: heavy seas that boded trouble for small craft. 2. well for a strong nitrogen fertilizer year. 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. , soybean, wheat and corn prices have risen approximately 30 to 45 percent from the same time last year and are having a major positive impact. Corn acres have been revised upwards and are now anticipated to be similar to 2001. Nitrogen demand in the third quarter increased some 100,000 tonnes above market expectations, despite heavy rains in some areas of Argentina. The increase in demand, coupled with 52,000 tonnes of lost Profertil production in mid-August Noun 1. mid-August - the middle part of August period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" , has led to a tight urea market requiring urea imports. The total fertilizer market for 2002 is now estimated to be 1.4 million tonnes compared to the original estimate of 1.1 million tonnes, a 21 percent increase. Agriculture is one sector of the Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. economy that has showed significant strength despite the difficult economic restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). taking place in the country. 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 and South America Retail are continuing to experience the anticipated positive benefits of 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 costs and a renewed re·new v. re·newed, re·new·ing, re·news v.tr. 1. To make new or as if new again; restore: renewed the antique chair. 2. focus on agricultural exports. Recent stabilization Stabilization The action undertakes a country when it buys and sells its own currency to protect its exchange value. Actions registered competitive traders undertake by on the NYSE to meet the exchange requirement that 75% of their traded be stabilizing, meaning that sell orders in the value of the Peso and forward purchases of product have allowed South America Retail to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. further devaluation risk. Profertil's
ability to export product has lessened less·en v. less·ened, less·en·ing, less·ens v.tr. 1. To make less; reduce. 2. Archaic To make little of; belittle. v.intr. To become less; decrease. its exposure to Peso devaluation. On a 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. basis, Profertil has reached agreement with its suppliers on a natural gas price to the end of April 2003 and continues to negotiate pricing for gas delivery charges. The total delivered gas price is expected to be significantly below the $1.50 base price in the original contract. Agrium continues to be on track with its previous guidance of $0.10 per share for the second half of 2002. This is a significant improvement over 2001, which resulted in a loss of $0.29 per common share, or a loss of $0.72 per common share including the loss related to the Argentine Charges. 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 North America Wholesale earnings before interest expense and income taxes (EBIT EBIT See: Earnings Before Interest and Taxes EBIT See earnings before interest and taxes (EBIT). ) was $1-million for the first nine months of 2002, a sharp decrease from EBIT of $80-million for the first nine months of 2001. The decrease was due to lower nitrogen prices and 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. losses. For the first nine months of 2002, the U.S. Gulf Coast ammonia price averaged $141 per metric tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. , compared to $220 per metric tonne for the same period in 2001. Lower nitrogen prices affected all of North America Wholesale's approximately 3.8 million metric tonnes of nitrogen sales in the first nine months of 2002. Also during this period cost of product sold incorporated $36-million in natural gas hedging losses compared to $79-million in hedging gains for the same period of 2001. South America Wholesale EBIT was $12-million, before Argentine Charges, up significantly from EBIT of $3-million for the first nine months of 2001. Lower operating costs operating costs npl → gastos mpl operacionales due to the devaluation of the Peso were the primary reason for the increase. After including the Argentine Charges, EBIT was a loss of $2-million for the first nine months of 2002. North America Retail recorded EBIT of $45-million for the first nine months of 2002 compared to $48-million for the same period in 2001. The primary reason for the decrease was lower nitrogen prices, which resulted in lower gross profit even though margin percentages remained similar. South America Retail EBIT for the first nine months of 2002 was $10-million, excluding the Argentine Charges, a significant improvement from $4-million in 2001. After including the Argentine Charges, EBIT was $19-million for the first nine months of 2002. 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 Nitrogen Sales volumes were up 15 percent from the first nine months of 2001 to 3.8 million metric tonnes primarily due to increased sales to U.S. customers. Average costs per metric tonne were down approximately 10 percent from 2001 reflecting lower gas costs and greater production efficiency compared to 2001. The major reason for the sharp decline in gross profit was significantly lower prices. Compared to the first nine months of 2001, average realized prices were lower by $46 per metric tonne. Overall nitrogen margins fell by $33 per metric tonne, dropping from $42 per metric tonne in the first nine months of 2001 to $9 per metric tonne in the first nine months of 2002. As a result, gross profit for nitrogen was $36-million for the first nine months of 2002 compared to $139-million for the same period in 2001. Phosphate Sales volumes were up 70 percent from the first nine months of 2001 to 849,000 metric tonnes. This increase was primarily the result of better production volumes from the Conda, Idaho Idaho (ī`dəhō), one of the Rocky Mt. states in the NW United States. It is bordered by Montana and Wyoming (E), Utah and Nevada (S), Oregon and Washington (W), and the Canadian province of British Columbia (N). and Redwater, Alberta Redwater is a town in northern Alberta, Canada. It is located km ( mi) north of Edmonton on Highway 38, in Sturgeon County. Its population, as of 2006, was 2,192. Redwater is placed in the federal riding of Westlock—St. facilities. Redwater's improved performance was related to improved 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. production from the 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. facility. Phosphate prices for the first nine months of 2002 were down 5 percent from the same period in 2001; however, per metric tonne 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 were down 15 percent. As a result, overall margins improved to $29 per metric tonne for the first nine months of 2002 tonne compared to $10 per metric tonne for the same period in 2001. The improvement in costs per metric tonne was primarily the result of better production volumes from Conda and Redwater redwater red urine; see hemoglobinuria, hematuria, myoglobinuria, phenothiazine, phenolphthalein, xanthorrhoea. redwater fever see babesiosis. and the lower cost of phosphate rock from Kapuskasing. Gross profit for phosphate was $25-million for the first nine months of 2002 compared to $5-million for the same period in 2001. 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. Sales volumes were up 23 percent from the first nine months of 2001 to 1.2 million metric tonnes. This increase was due to higher sales volumes in both the North American and export markets. However, prices were $3 per metric tonne lower compared to the same period in 2001. The overall margin for the period was $41 per metric tonne compared to $43 per metric tonne for the first nine months of 2001. As a result, gross profit for potash was $51-million for the first nine months of 2002 compared to $43-million for the same period in 2001. Sulphate sulphate: see sulfate. and Other Products Gross profit for sulphate and other products was $17-million for the first nine months of 2002 compared to $13-million for the same period last year. North America - Retail For the first nine months of 2002, North America Retail gross profit was down $4-million from the same period in 2001 to $198-million, despite similar overall revenue. Higher fertilizer sales volumes, primarily due 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 sales in 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. , were more than offset by the impact of lower nitrogen prices, resulting in lower fertilizer revenue and gross profit. Chemical revenues were up year-over-year although gross profit was flat due to lower per unit margins. South America - Wholesale Gross profit for the first nine months of 2002 was $30-million compared to $20-million for the same period in 2001 even though revenue was similar for the comparable periods. The higher gross profit was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to lower production costs, including natural gas costs, as a result of the devaluation 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$, . South America - Retail Gross profit for South America Retail was similar at $19-million for the first nine months of 2002 compared to the same period of 2001. However, revenues declined from $61-million in 2001 to $45-million in 2002 for the first nine months of 2002. Lower revenues reflect the reduced level of business activity in Argentina during the first nine months of 2002 as a result of the economic uncertainty in the country. South America Retail has been able to maintain gross profit despite the significant drop in revenue due to a reduction in the costs of this operation as a result of the Peso devaluation. Other Other represents corporate functions and inter-segment eliminations. The loss before interest expense and income taxes was $26-million for the first nine months of 2002 compared to a loss of $30-million for the same period in 2001, resulting primarily from reduced selling, general and administrative costs administrative costs, n.pl the overhead expenses incurred in the operation of a dental benefits program, excluding costs of dental services provided. . Interest expense Interest expense for the nine months ended September 30, 2002, was $50-million, down from $55-million for the same period in 2001. Lower interest costs were primarily the result of reduced short-term 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. due to lower inventory levels in 2002 and the reduction of short-term indebtedness from the proceeds of the 11.2 million common share equity offering in March 2002. Selling, General and Administrative Expenses Total Selling, General and Administrative expenses were down $16-million to $184-million for the nine months ended September 30, 2002, compared to the same period in 2001. Financial Cash flow from operating activities for the nine months ended September 30, 2002 was $145-million compared to $116-million for the first nine months of 2001. Higher 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 was primarily the result of lower cash taxes and the add-back of non-cash Argentine Charges included in net income, offset by the impact of lower earnings. Net working capital at September 30, 2002, was $300-million, an increase of $72-million from the prior year, primarily due to lower current bank indebtedness at September 30, 2002. Current bank indebtedness was $21-million compared to $201-million at September 30, 2001 as a result of lower inventory, accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying and proceeds from the March 2002 equity offering. The lower inventory is attributable to both a lower quantity of product in inventory at September 30, 2002 and lower unit costs, primarily as a result of lower gas costs. Bank indebtedness is comprised of short-term financing which is being used to fund working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . SUPPLEMENTARY DISCLOSURE The Corporation believes that the disclosure of certain supplementary information is useful to the investor although such information is not a recognized measure under 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. generally accepted accounting principles The standard accounting rules, regulations, and procedures used by companies in maintaining their financial records. Generally accepted accounting principles (GAAP) provide companies and accountants with a consistent set of guidelines that cover both broad accounting (GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). ). Management believes that in addition to net earnings (loss), earnings before interest expense and income tax (EBIT) is a useful supplementary measure as it provides investors with a historical perspective of earnings available prior to debt service and income taxes. The Corporation's method of calculating EBIT may differ from other companies and accordingly EBIT may not be comparable to measures used by other companies. Management also believes that disclosure of EBIT before and after the impact of Argentine Charges provides the investor with an understanding of its exposure to Argentina, and the impact of Argentina on its other operations. Investors should be cautious, however, that these measures not be construed as an alternative to net earnings (loss) determined in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with GAAP as an indicator Indicator Anything used to predict future financial or economic trends. Notes: In the context of technical analysis, an indicator is a mathematical calculation based on a securities price and/or volume. The result is used to predict future prices. of the Corporation's performance. 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, the future supply and demand for fertilizers, the future prices of nitrogen, phosphate and potash, the level and volatility Volatility 1. A statistical measure of the tendency of a market or security to rise or fall sharply within a period of time. 2. A variable in option pricing formulas that denotes the extent to which the return of the underlying asset will fluctuate between now and the of natural gas 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
of the 3rd Quarter Conference Call will be available
in a listen-only mode beginning
October 30 at 8:30 a.m. MDT (10:30 a.m. EDT)
Please log in 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 Nine months ended
September 30, September 30,
--------------------------------------------
2002 2001 2002 2001
--------------------------------------------
Sales $ 494 $ 433 $1,660 $1,675
Direct freight 28 23 85 81
--------------------------------------------
Net sales 466 410 1,575 1,594
Cost of product 333 306 1,199 1,151
--------------------------------------------
Gross profit 133 104 376 443
--------------------------------------------
Expenses
Selling, general and
administrative 64 68 184 200
Depreciation, depletion
and amortization 42 43 108 106
Other expenses 11 8 42 32
Argentine charges
- Peso translation (3) - 16 -
- US dollar forced
conversion recovery - - (11) -
--------------------------------------------
114 119 339 338
--------------------------------------------
Earnings before interest
expense and income taxes 19 (15) 37 105
Interest on long-term debt 16 15 46 40
Other interest 1 3 4 15
--------------------------------------------
Earnings (loss) before
income taxes 2 (33) (13) 50
Income tax (recovery)
expense 1 (16) (1) 15
--------------------------------------------
Net earnings (loss) 1 (17) (12) 35
Retained earnings -
beginning of period 220 355 245 315
Change in accounting
policy (Note 2) (29) - (29) -
Common share dividends
declared - - (7) (6)
Preferred securities
charges (3) (3) (8) (9)
--------------------------------------------
Retained earnings -
end of period $ 189 $ 335 $ 189 $ 335
--------------------------------------------
--------------------------------------------
Basic earnings (loss) per
common share (Note 4) ($0.01) ($0.17) ($0.16) $0.23
Average outstanding shares
(in millions)((Note 4) 126 115 122 115
Diluted earnings (loss)
per common share ($0.01) ($0.17) ($0.16) $0.23
Average outstanding shares
(in millions) 126 115 122 116
AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
Three months ended Nine months ended
September 30, September 30,
--------------------------------------------
2002 2001 2002 2001
--------------------------------------------
Operating:
Net earnings (loss)
for the period $ 1 $ (17) $ (12) $ 35
Depreciation, depletion
and amortization 42 43 108 106
Future income taxes
(reduction) - (9) 3 (25)
Argentine charges
- Peso translation 22 - 56 -
- US dollar forced
conversion recovery - - (10) -
--------------------------------------------
Cash provided by
operating activities 65 17 145 116
Net changes in non-cash
working capital (37) (29) (40) (132)
--------------------------------------------
Cash provided by (used in)
operating activities after
changes in non-cash working
capital 28 (12) 105 (16)
--------------------------------------------
Investing:
Capital assets (15) (35) (23) (120)
Other assets 3 (4) 11 (33)
Proceeds from disposal of
assets and investments 7 1 8 2
Other (23) (2) (12) 4
--------------------------------------------
Cash used in investing
activities (28) (40) (16) (147)
--------------------------------------------
Financing:
Common shares - - 107 -
Bank indebtedness 11 18 (190) (107)
Issue (repayment) of
long-term debt (10) 1 (14) 271
Common share dividends paid (7) (6) (14) (13)
Preferred securities
charges paid (5) (1) (8) (6)
--------------------------------------------
Cash provided by (used in)
financing activities (11) 12 (119) 145
--------------------------------------------
Decrease in cash position (11) (40) (30) (18)
Cash and cash-equivalents
- beginning of period 32 40 51 18
--------------------------------------------
Cash and cash-equivalents
- end of period $ 21 $ - $ 21 $ -
--------------------------------------------
--------------------------------------------
AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
As at As at
September 30, December 31,
---------------------- -------------
2002 2001 2001
---------------------- -------------
(Unaudited)
ASSETS
Current assets
Cash and cash-equivalents $ 21 $ - $ 51
Accounts receivable 216 259 218
Inventories 336 439 400
Prepaid expenses 30 22 34
---------------------- -------------
603 720 703
Capital assets 1,406 1,476 1,494
Other assets 93 177 132
Goodwill (Note 2) - 46 45
---------------------- -------------
$2,102 $2,419 $2,374
---------------------- -------------
---------------------- -------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 21 $ 201 $ 211
Accounts payable and
accrued liabilities 270 284 349
Income and other taxes
payable 5 6 13
Current portion of
long-term debt 7 1 7
---------------------- -------------
303 492 580
Long-term debt 620 629 621
Non-recourse
financing - Profertil 131 146 141
Other liabilities 142 127 127
Future income taxes 147 167 162
---------------------- -------------
1,343 1,561 1,631
Shareholders' equity
Share capital
Authorized: unlimited common shares and preferred securities
Issued:
Common shares: 2002- 126
million (2001-115 million) 484 376 376
Preferred securities:
8% Non-convertible 2002- 7
million (2001-7 million) 171 171 171
6% Convertible 2002- 2
million (2001-2 million) 50 50 50
Retained earnings 189 335 245
Cumulative translation
adjustment (135) (74) (99)
---------------------- -------------
759 858 743
---------------------- -------------
$2,102 $2,419 $2,374
---------------------- -------------
---------------------- -------------
AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
For the nine months ended September 30, 2002
(Millions of U.S. dollars)
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Corporation's accounting policies are in accordance with
accounting principles generally accepted in Canada and are consistent
with those outlined in the annual audited financial statements except
where stated below. These interim consolidated financial statements 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, 2001. In
management's opinion, the unaudited interim consolidated financial
statements include all adjustments (consisting solely of normal
recurring adjustments) necessary to present fairly such information.
Interim results are not necessarily indicative of the results expected
for the fiscal year.
The consolidated financial statements include the accounts of
Agrium Inc. and its subsidiaries.
2. CHANGE IN ACCOUNTING POLICY
Effective January 1, 2002 the Corporation has adopted the new
accounting standard for goodwill. This standard requires that goodwill
and other indefinite life intangible assets be subject to an annual
impairment test rather than being amortized. Amortization expense in
2001 was approximately $1-million per quarter, before income taxes.
Under the transitional provisions of the new standard, the
Corporation has completed the transitional impairment test for the
reporting units that includes goodwill. The results of the test
indicate that goodwill of the Corporation's phosphate business, which
is included in the reportable segment entitled "North America
Wholesale", is impaired. The amount of the impairment represents the
entire goodwill balance of $45-million or $29-million net of tax. The
resulting impairment loss has been recognized as a change in
accounting policy and charged to retained earnings as of January 1,
2002.
3. STOCK BASED COMPENSATION
The following is the pro forma net earnings (loss) and basic
earnings (loss) per share amounts had the Corporation charged the fair
value of stock based compensation to net earnings (loss) in each
period:
Three months ended Nine months ended
September 30, September 30,
------------------------------- -----------------------------
2002 2001 2002 2001
--------------- -------------- -------------- -------------
As Pro As Pro As Pro As Pro
Reported forma Reported forma Reported forma Reported forma
Net
earnings
(loss) $ 1 $ - $ (17)$ (19) $ (12)$ (17) $ 35 $ 30
Earnings
(loss)
per
common
share
Basic $(0.01)$(0.02) $(0.17)$(0.19) $(0.16)$(0.20) $ 0.23 $0.19
4. EARNINGS (LOSS) PER COMMON SHARE
The following table summarizes the computation of net earnings
(loss) per common share:
Three months ended Nine months ended
September 30, September 30,
------------------ -----------------
2002 2001 2002 2001
------------------ -----------------
Numerator:
Net earnings (loss) $ 1 $ (17) $ (12) $ 35
Preferred securities
charges net of tax (3) (3) (8) (9)
------------------ -----------------
Numerator for basic earnings
(loss) per share (2) (20) (20) 26
------------------ -----------------
Preferred securities charges
net of tax 3 3 8 9
------------------ -----------------
Numerator for diluted
earnings (loss) per share $ 1 $ (17) $ (12) $ 35
------------------ -----------------
Denominator:
Weighted average denominator
for basic common shares 126 115 122 115
------------------ -----------------
Dilutive instruments:
Stock options using the
treasury stock method - - - 1
Preferred securities converted
to common shares
$175 million, eight percent - - - -
$50 million, six percent - - - -
------------------ -----------------
Denominator for diluted
earnings per share 126 115 122 116
------------------ -----------------
Basic earnings (loss)
per share $ (0.01) $ (0.17) $ (0.16) $ 0.23
Diluted earnings (loss)
per share $ (0.01) $ (0.17) $ (0.16) $ 0.23
As at September 30, 2002, the Corporation has outstanding
approximately nine million options to acquire common shares.
5. SEASONALITY
The fertilizer business is seasonal in nature. Sales are
concentrated in the spring and fall planting seasons while produced
inventories are accumulated throughout the year. Cash collections
generally occur after the planting seasons in North America and after
harvest in South America.
6. KENAI FACILITY
The Corporation and Union Oil Company of California (Unocal) have
commenced litigation over the shortfall in dedicated natural gas
reserves to supply the Kenai, Alaska nitrogen production facility. The
Corporation continues to dispute with Unocal three issues related to
the purchase of certain nitrogen assets from Unocal on September 30,
2000. These issues, described in Note 21 of the 2001 Annual Report,
are Unocal's gas supply and deliverability obligations, environmental
liabilities and the Earn-out payment. On June 10, 2002 the Corporation
filed a lawsuit against Unocal seeking compensatory damages and
restitution, punitive damages, and certain declaratory relief relating
to gas supply, Earn-out, and environmental matters. Unocal
contemporaneously filed suit against the Corporation claiming damages
for breach of contract for non-payment of the Earn-out in 2001. Unocal
has advised that for reasons including forecasted cold weather and
related delivery obligations to third parties it will likely reduce
deliveries to Agrium to the rate of approximately 95,000 to 125,000
MMBtu per day during the coming winter months compared to full
capacity of 155,000 MMBtu per day. Unocal has indicated that they will
resume supplying natural gas at a minimum of 120,000 MMBtu per day
commencing in April 2003.
7. SEGMENTED INFORMATION
The Corporation's primary activity is the production and wholesale
marketing of nitrogen, potash, phosphate, sulphate 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 and Argentina.
Net sales between segments are accounted for at prices which
approximate fair market value and are eliminated on consolidation. The
reportable segment entitled "Other" includes Corporate functions and
inter-segment eliminations.
AGRIUM INC.
Segmented Earnings Before Interest Expense and Income Taxes
(Millions of U.S. dollars)
(Unaudited)
Three months ended September 30,
--------------------------------------------------------
2002
--------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
Net sales
- external
customers $ 228 $ 188 $ 20 $ 30 $ - $ 466
- internal
customers 15 - 1 - (16) -
--------------------------------------------------------
Total net sales 243 188 21 30 (16) 466
Cost of product 200 121 8 20 (16) 333
--------------------------------------------------------
Gross profit 43 67 13 10 - 133
Gross profit % 18% 36% 62% 33% 0% 29%
Expenses:
Selling, general
and
administrative 8 47 1 4 4 64
Depreciation,
depletion and
amortization 31 5 5 - 1 42
Other (income)
expenses 9 (2) - 1 3 11
Argentine charges
- Peso
translation - - (3) - - (3)
- US dollar
forced
conversion
recovery - - - - - -
--------------------------------------------------------
48 50 3 5 8 114
--------------------------------------------------------
Earnings (loss)
before interest
expense and
income taxes $ (5) $ 17 $ 10 $ 5 $ (8) $ 19
--------------------------------------------------------
--------------------------------------------------------
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
Gross profit % 11% 37% 29% 31% -11% 25%
Expenses:
Selling, general
and
administrative 8 47 2 5 6 68
Depreciation,
depletion and
amortization 32 5 3 1 2 43
Other (income)
expenses 11 (2) 2 - (3) 8
Argentine charges
- Peso
translation - - - - - -
- US dollar
forced
conversion
recovery - - - - - -
--------------------------------------------------------
51 50 7 6 5 119
--------------------------------------------------------
Earnings (loss)
before interest
expense and
income taxes
$ (30) $ 14 $ - $ 4 $ (3) $ (15)
--------------------------------------------------------
--------------------------------------------------------
Nine months ended September 30,
--------------------------------------------------------
2002
--------------------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
Net sales
- external
customers $ 798 $ 685 $ 47 $ 45 $ - $1,575
- internal
customers 54 - 3 - (57) -
--------------------------------------------------------
Total net sales 852 685 50 45 (57) 1,575
Cost of product 723 487 20 26 (57) 1,199
--------------------------------------------------------
Gross profit 129 198 30 19 - 376
Gross profit % 15% 29% 60% 42% 0% 24%
Expenses:
Selling, general
and
administrative 24 142 3 7 8 184
Depreciation,
depletion and
amortization 73 15 13 1 6 108
Other (income)
expenses 31 (4) 2 1 12 42
Argentine charges
- Peso
translation - - 16 - - 16
- US dollar
forced
conversion
recovery - - (2) (9) - (11)
--------------------------------------------------------
128 153 32 - 26 339
--------------------------------------------------------
Earnings (loss)
before interest
expense and
income taxes $ 1 $ 45 $ (2) $ 19 $ (26) $ 37
--------------------------------------------------------
--------------------------------------------------------
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
Gross profit % 23% 30% 37% 31% -3% 28%
Expenses:
Selling, general
and
administrative 23 144 5 12 16 200
Depreciation,
depletion and
amortization 73 15 9 3 6 106
Other (income)
expenses 24 (5) 3 - 10 32
Argentine charges
- Peso
translation - - - - - -
- US dollar
forced
conversion
recovery - - - - - -
--------------------------------------------------------
120 154 17 15 32 338
--------------------------------------------------------
Earnings (loss)
before interest
expense and
income taxes $ 80 $ 48 $ 3 $ 4 $ (30) $ 105
--------------------------------------------------------
--------------------------------------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars)
(Unaudited)
Three months ended September 30,
2002
------------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
Sales Product Profit Sales Inventory ($/Tonne)
------------------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 46 $ 41 $ 5 318 341 $ 16
Urea 73 62 11 559 161 20
Nitrate and
other 26 26 - 203 174 -
------------------------------------------------------
Total Nitrogen 145 129 16 1,080 676 15
Phosphate
- Dry 47 38 9 243 63 37
Phosphate
- Liquid 11 10 1 37 11 27
Potash 33 18 15 339 156 44
Sulphate and
other products 7 5 2 60 123 33
------------------------------------------------------
243 200 43 1,759 1,029 24
-----------------------------
North America
Retail
Fertilizers 61 43 18
Chemicals 100 71 29
Other products
and services 27 7 20
------------------------
188 121 67
South America
Wholesale
Nitrogen 19 8 11 155 20 71
Other products
and services 2 - 2
------------------------
21 8 13
South America
Retail
Fertilizers 21 13 8
Other products
and services 9 7 2
------------------------
30 20 10
Other (16) (16) -
------------------------
Total $ 466 $ 333 $ 133
------------------------
------------------------
Three months ended September 30,
2001
------------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
Sales Product Profit Sales Inventory ($/Tonne)
------------------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 45 $ 40 $ 5 276 433 $ 18
Urea 59 60 (1) 477 352 (2)
Nitrate and
other 29 28 1 200 247 5
------------------------------------------------------
Total Nitrogen 133 128 5 953 1,032 5
Phosphate
- Dry 17 18 (1) 95 233 (11)
Phosphate
- Liquid 7 5 2 23 10 87
Potash 28 15 13 280 227 46
Sulphate and
other products 12 10 2 86 61 23
------------------------------------------------------
197 176 21 1,437 1,563 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 19 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
------------------------
------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars)
(Unaudited)
Nine months ended September 30,
2002
------------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
Sales Product Profit Sales Inventory ($/Tonne)
------------------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 165 $ 152 $ 13 1,109 341 $ 12
Urea 231 209 22 1,813 161 12
Nitrate and
other 111 110 1 883 174 1
------------------------------------------------------
Total Nitrogen 507 471 36 3,805 676 9
Phosphate
- Dry 142 123 19 742 63 26
Phosphate
- Liquid 36 30 6 107 11 56
Potash 120 69 51 1,229 156 41
Sulphate and
other products 47 30 17 299 123 57
------------------------------------------------------
852 723 129 6,182 1,029 21
-----------------------------
North America
Retail
Fertilizers 278 199 79
Chemicals 309 237 72
Other products
and services 98 51 47
------------------------
685 487 198
South America
Wholesale
Nitrogen 46 19 27 419 20 65
Other products
and services 4 1 3
------------------------
50 20 30
South America
Retail
Fertilizers 32 17 15
Other products
and services 13 9 4
------------------------
45 26 19
Other (57) (57) -
------------------------
Total $1,575 $1,199 $ 376
------------------------
------------------------
Nine months ended September 30,
2001
------------------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
Sales Product Profit Sales Inventory ($/Tonne)
------------------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 248 $ 172 $ 76 1,130 433 $ 67
Urea 229 186 43 1,465 352 29
Nitrate and
other 118 98 20 727 247 28
------------------------------------------------------
Total Nitrogen 595 456 139 3,322 1,032 42
Phosphate
- Dry 82 84 (2) 417 233 (5)
Phosphate
- Liquid 29 22 7 82 10 85
Potash 101 58 43 1,000 227 43
Sulphate and
other products 52 39 13 331 61 39
------------------------------------------------------
859 659 200 5,152 1,563 39
-----------------------------
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 19 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
------------------------
------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars)
(Unaudited)
Three months ended September 30,
-------------------------------------------------------
2002
-------------------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-------------------------------------------------------
North America
Nitrogen $ 108 $ 97 $ 11 10% 742 $ 15
Phosphate 58 48 10 17% 280 36
Potash 25 15 10 40% 242 41
Sulphate and
other products 5 3 2 40% 30 -
North America
Retail 188 121 67 36% - -
Other (16) (16) - 0% - -
-------------------------------------------------------
368 268 100 27% 1,294 -
International
Nitrogen 56 40 16 29% 494 32
Potash 8 3 5 63% 97 52
Sulphate and
other products 4 2 2 50% 29 -
South America
Retail 30 20 10 33% - -
-------------------------------------------------------
98 65 33 34% 620 -
-------------------------------------------------------
Total $ 466 $ 333 $ 133 29% 1,914 $ -
-------------------------------------------------------
-------------------------------------------------------
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 6 0 0% 24 -
South America
Retail 32 22 10 31% - -
-------------------------------------------------------
103 77 26 25% 616 -
-------------------------------------------------------
Total $ 410 $ 306 $ 104 25% 1,605 $ -
-------------------------------------------------------
-------------------------------------------------------
Nine months ended September 30,
-------------------------------------------------------
2002
-------------------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit % (000's) ($/Tonne)
-------------------------------------------------------
North America
Nitrogen $ 397 $ 365 $ 32 8% 2,718 $ 12
Phosphate 178 153 25 14% 849 29
Potash 89 56 33 37% 846 39
Sulphate and
other products 41 25 16 39% 234 -
North America
Retail 685 487 198 29% - -
Other (57) (57) - 0% - -
-------------------------------------------------------
1,333 1,029 304 23% 4,647 -
International
Nitrogen 156 125 31 20% 1,507 21
Potash 31 13 18 58% 383 47
Sulphate and
other products 10 6 4 40% 63 63
South America
Retail 45 26 19 42% - -
-------------------------------------------------------
242 170 72 30% 1,953 -
-------------------------------------------------------
Total $1,575 $1,199 $ 376 24% 6,600 $ -
-------------------------------------------------------
-------------------------------------------------------
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 $ -
-------------------------------------------------------
-------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion