Agrium Inc. News Release-Q2 Interim Report: First half results improve despite poor weather conditions during spring season.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)--July 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.) ALL AMOUNTS ARE STATED IN U.S.$ Agrium Inc. announced today that its net earnings for the first six months of 2001 were $52-million ($0.41 per common share), an improvement over $46-million ($0.38 per common share) for the first six months of 2000. Net earnings for the second quarter ended June June: see month. 30, 2001, were $45-million ($0.37 per common share) compared to $51-million ($0.44 per common share) for the same period in 2000. "Despite an extremely disappointing second quarter, we are pleased with our improved results for the first six months of this year," 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. . "This improvement is encouraging given a spring season that did not shape up as expected due to poor weather conditions, low grain prices and grower concerns over rising input costs. All these factors translated into poor spring sales volumes, which in turn resulted in high inventories coming out of the spring application season." Agrium's improved six-month results were due to several key factors. The primary reason was international sales from 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. 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 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") in September September: see month. of 2000. In addition, Agrium's 50 percent interest in the Profertil S.A. nitrogen 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. contributed to earnings in 2001. Within 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. , higher nitrogen prices and Agrium's strong 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. position in natural gas resulted in improved nitrogen margins. The first six months of 2001 also saw continued growth in Retail earnings. North America began 2001 in an environment of record high natural gas prices, natural gas being the major cost component of nitrogen fertilizer. As a result, a number of nitrogen plants shut in production late in 2000 and early in 2001. In anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of tightened supply for the spring season, nitrogen prices rose significantly. However, these higher prices and weather-related reductions in international demand attracted record imports into North America. At the same time, most of the shut-in shut-in n. A person confined indoors by illness or disability. adj. 1. Confined to a home or hospital, as by illness. 2. Disposed to avoid social contact; excessively withdrawn or introverted. North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. production restarted with the fall in natural gas prices beginning in February February: see month. 2001. These factors combined to bring pre-season inventory levels into a normal range. However, weather problems across North America impacted the spring application season. Much of central North America was too wet, while 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. were too dry. These conditions combined with depressed Depressed A description of a market, security, or product that is experiencing weak demand and lowering prices. Notes: A depressed market, security, or product implies that prices and volume are low. There are many reasons for a depressed market, security, or product. grain prices led to a drop in North American demand for all the nutrients. As a result, North American inventory levels carried out of the spring season were much higher than normal. 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 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 $3.92 per MMBtu by the end of June. Agrium's natural gas costs for the first six months of 2001 were 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 gains realized during the first six months of 2001, and a cost advantage for natural gas purchases 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. $2.83 per MMBtu or 47 percent of NYMEX prices for the first half of 2001. OTHER SECOND QUARTER HIGHLIGHTS - Urea facility under control of Profertil S.A. On March 23, 2001, Profertil S.A. took over care, custody The care, possession, and control of a thing or person. The retention, inspection, guarding, maintenance, or security of a thing within the immediate care and control of the person to whom it is committed. The detention of a person by lawful authority or process. and operations of the ammonia ammonia, chemical compound, NH3, colorless gas that is about one half as dense as air at ordinary temperatures and pressures. It has a characteristic pungent, penetrating odor. plant and site utilities from the contractor contractor n. 1) a person or entity that enters into a contract. 2) commonly, a person or entity that agrees to construct a building or to provide or install specialized portions of the construction. . On June 9, 2001, control of the urea plant was taken over from the contractor, bringing the entire facility under the control of Profertil S.A. This has had a positive impact on production as all aspects of the plant have now met contractual performance tests and are under the full operational control of Profertil S.A. - 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. production volumes increase. For the first six months of 2001, the Kapuskasing 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 operated at an average of 76 percent of design capacity. During this period the cost per tonne tonne measure of weight or mass; 1 tonne=1000 kg. See also ton. of rock delivered to Agrium's Redwater redwater red urine; see hemoglobinuria, hematuria, myoglobinuria, phenothiazine, phenolphthalein, xanthorrhoea. redwater fever see babesiosis. 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 Facility declined significantly. However, 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 phosphate produced at our Redwater Phosphate Operation has not declined from 2000 levels due to higher ammonia and power costs. It is anticipated that the Kapuskasing facility will operate at design capacity for the last half of 2001, resulting in further reductions in costs. - New financing arrangement completed for working capital requirements Capital requirements Financing required for the operation of a business, composed of long-term and working capital plus fixed assets. . During the second quarter Agrium put in place a $300-million syndicated revolving term credit facility replacing a $125-million revolving term credit facility, increasing total working capital credit lines from $200-million to $375-million. - 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. filed. In the second quarter the Company further increased its financial flexibility by filing a shelf prospectus 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 for the issue of 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. debentures. The shelf prospectus expires in 25 months and any issuance of notes under the program would be used to replace short term bank 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. , and for general corporate purposes. - Production shutdowns. Production was curtailed at a number of Agrium's North American facilities following the spring application season. These curtailments were largely in response to weather-related decreases in fertilizer consumption in Agrium's North American markets. Most facilities are taking extended turnarounds or are operating at reduced rates. The urea plant at Fort Saskatchewan, Alberta Fort Saskatchewan is a city of 14,957 (2006 census) located km ( mi) northeast of downtown Edmonton, Alberta, Canada. The two city's boundaries touch across the North Saskatchewan River. History In 1875, under the command of Inspector W.D. and the smaller ammonia plant at 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. were shut down effective June 1, 2001, and will remain idle until market conditions improve. The ammonia plant at Fort Saskatchewan Saskatchewan, province, Canada Saskatchewan (səskăch`əwən, –wän', săs'–), province (2001 pop. 978,933), 251,700 sq mi (651,903 sq km), W Canada. was also shut down in early June but is expected to resume production later in the third quarter. On July July: see month. 1, 2001, Agrium's facility in 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). was temporarily shut down due to environmental permitting issues. OUTLOOK The recently completed spring season saw North American fertilizer demand drop to levels not seen for a decade. Poor weather conditions, combined with low commodity prices and concern over escalating costs for nitrogen fertilizer and fuel, encouraged growers Growers are the people, animals, plants, and various living creatures that assist in the growing of plants and other living creatures. More specifically, the term "growers" refers to individual people who put forth effort to grow plants for food and medicinal use, including the to cut back on their fertilizer application rates, leave land idle, or switch to less nitrogen intensive crops. Overall consumption of nitrogen, phosphate and potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. in North America appears to be down about five percent year-over-year. Some regions, including Western Canada and the U.S. Pacific Northwest, appear to have experienced even larger reductions in fertilizer consumption. As a result of the high inventory levels coming out of the spring season, as much as one-third of the North American nitrogen industry is currently shut in. It is expected that North American crop yields will be lower this year, due in part to lower planted acreage and lower fertilizer application rates this spring. Weather is continuing to cause problems in some regions, including parts of Western Canada where 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. may discourage farmers from harvesting har·vest n. 1. The act or process of gathering a crop. 2. a. The crop that ripens or is gathered in a season. b. The amount or measure of the crop gathered in a season. c. their crops. Currently, the U.S. Department of Agriculture is projecting the U.S. 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 and corn crops to be 11 percent and five percent, respectively, smaller than last year. Other regions in the world are also displaying evidence of lower grain production. This includes China, which recently banned the export of corn and purchased corn internationally. Lower grain production in North America and around the world could lead to a recovery in grain prices, especially wheat and corn. This could create better economics for growers, which should firm up demand for all nutrients. 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. Current production curtailments in North America and around the world should contribute to a reduction in inventory and accelerate the tightening in supply. North American natural gas markets have been extremely volatile over the past 15 months, primarily due to concerns over natural gas storage levels. In recent months, storage injections increased year-over-year following a rise in gas production and a drop in demand from industrial users. The current level of gas storage in North America suggests that prices may moderate over the next 12 months, barring extreme weather conditions that would increase natural gas demand for power generation and heating. The cost advantage for Western 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. industrial consumers is currently at the historical average differential of $0.60 to $0.70 per MMBtu versus NYMEX. For Agrium, the combination of high inventory levels and high inventoried costs coming out of the spring season, along with the current weak prices make it unlikely that the third quarter will contribute to earnings. It is currently difficult to predict fourth quarter results, which will depend on overall market conditions, including industry inventory levels, input costs and the effect crop prices have on fertilizer demand. 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). ) were $110-million for the first six months of 2001, an increase of 31 percent over the same period in 2000. This increase in earnings was primarily due to the impact of international sales from the Unocal fertilizer assets acquisition and to higher nitrogen prices. In South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. , EBIT for Wholesale was $4-million, compared to a loss of $1-million in the same period of 2000, which reflected the increased sales from the start-up Start-up The earliest stage of a new business venture. of the Profertil S.A. nitrogen facility. North America Retail continues to increase its earnings year-over-year, recording EBIT of $35-million for the first six months of 2001, a $2-million increase over the same period in 2000. South America Retail EBIT for the first six months of 2001 was a loss of $2-million, an improvement from a loss of $6-million in 2000. 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 six months of 2001 increased 14 percent for nitrogen compared to the same period in 2000, however sales volumes for both phosphate and potash were lower by 26 percent and 17 percent, respectively. Nitrogen sales increased as a result of the production assets purchased from Unocal in September, 2000 at Kenai, Alaska, Kennewick, Washington 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. . Excluding the additional sales from these assets, nitrogen sales in Agrium's primary market regions were approximately 20 percent lower, largely due to adverse weather conditions. Shut-in production throughout North America, as a result of the high natural gas prices, led to higher nitrogen prices. For the first six months of 2001, Agrium's average realized nitrogen prices were up 39 percent compared to the same period in 2000. Potash prices were also up marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. year-over-year while phosphate prices were unchanged. Nitrogen cost of product sold for the first six months of 2001 was 37 percent higher than during the same period in 2000. This was due to higher natural gas costs. This increase was significantly less than the average NYMEX gas cost increase of 104 percent due to the benefits of hedging gains, fixed base-price gas supply agreements at Kenai, Alaska and Profertil, Argentina and a cost advantage for natural gas in Western Canada. Phosphate production costs for the first six months of 2001 also increased compared to the first six months of 2000, however the cost of dry phosphate was down approximately $10 per tonne over the first quarter of 2001 as a result of increased production from the Kapuskasing, 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. phosphate rock facility. Year-over-year phosphate costs are higher as the impact of higher ammonia and power costs more than offset the effect of lower phosphate rock costs from Kapuskasing. Potash costs 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 $179-million, an increase of 28 percent over the $140-million reported in the first six months of 2000. Nitrogen was the main contributor, generating gross profit of $135-million in the first six months of 2001 compared to $71-million during the same period in 2000. Offsetting this gain, year-over-year phosphate gross profit declined $15-million. Gross profit for potash also declined $10-million year-over-year due to lower international and North American sales. Sulphate sulphate: see sulfate. and other product gross profit remained unchanged. Other expenses have increased over 2000 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 in which production has been suspended sus·pend v. sus·pend·ed, sus·pend·ing, sus·pends v.tr. 1. To bar for a period from a privilege, office, or position, usually as a punishment: suspend a student from school. until market conditions improve and increased environmental provisions. North America - Retail For the first six months of 2001, North America Retail revenues and gross profit are up $9-million and $5-million, respectively, from the same period in 2000. Strong fertilizer prices more than offset a seven percent decline in fertilizer volumes and reduced chemical sales. Chemical revenues were down due to low pest pressure in the West and delayed 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 planting in the Midwest Midwest or Middle West, region of the United States centered on the western Great Lakes and the upper-middle Mississippi valley. It is a somewhat imprecise term that has been applied to the northern section of the land between the Appalachians . South America - Wholesale Results for South America Wholesale for the first six months of 2001 reflect the start-up of the Profertil S.A., Argentine Argentine having some relationship with the country Argentina. Argentine tick margaropuswinthemi. Argentine tortoise geochelonechilensis. facility. During the first quarter and into the second quarter, the contractor closed the plant a number of times to correct minor deficiencies in preparation for the Provisional Temporary; not permanent. Tentative, contingent, preliminary. A provisional civil service appointment is a temporary position that fills a vacancy until a test can be properly administered and statutory requirements can be fulfilled to make a permanent appointment. Acceptance tests. These 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. shutdowns resulted in lower production than anticipated. Despite reduced production volumes and higher operating costs operating costs npl → gastos mpl operacionales , gross profit for the first six months of 2001 was $14-million. South America - Retail Gross profit for South America Retail increased to $7-million for the first six months of 2001 compared to $4-million for the same period of 2000. This increase reflects 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. The loss before interest expense and income taxes of $27-million for the first six months of 2001 has increased over 2000 as a result of costs associated with the Unocal integration and consolidation of the former Unocal's administration functions under Agrium's corporate umbrella umbrella, a small canopy used as a protection against the sun in China, Egypt, and elsewhere in remote antiquity. It was often an emblem of rank. During the Middle Ages the umbrella became almost extinct in Europe; its usefulness was not rediscovered until the late . Interest Expense Interest expense for the six months ended June 30, 2001, has increased $19-million from the same period in 2000 due to increased debt levels related to the acquisition of Unocal's fertilizer assets at the end of the third quarter in 2000, 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 the construction of the Profertil nitrogen complex which achieved commercial production at the beginning of 2001 and increased short term indebtedness caused by high 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 six months ended June 30, 2001, was $99-million ($0.82 per common share) compared to $90-million ($0.77 per common share) for the first six months of 2000. The improved cash flow was largely the result of international sales from the assets acquired from Unocal in September 2000. Cash flow from operations for the second quarter ended June 30, 2001, was $61-million ($0.51 per common share) compared to $70-million ($0.61 per common share) for the second quarter of 2000. Working capital at June 30, 2001, was $261-million, an increase of $97-million from the prior year due to higher inventories resulting from the poor spring season in North America, and increased input costs in the production of nitrogen fertilizers, primarily power and natural gas. Bank indebtedness of $183-million is comprised of short-term financing which is being used to fund working capital requirements in North America and at Profertil, Argentina. In the first quarter, Agrium issued $125-million, 8.25 percent debentures due February 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, at which 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 quarter Agrium increased its financing flexibility. On May 25, 2001, Agrium entered into a new unsecured three-year term $300-million syndicated working capital credit facility. On June 26, 2001, Agrium filed a base shelf prospectus 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$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. Agrium continues to monitor the fiscal situation in Argentina and the steps it has taken to mitigate mit·i·gate v. To moderate in force or intensity. mit  i·ga tion n. currency exposure to the Peso. At
least 85 percent of Profertil S.A. sales are in U.S. dollars, and the
remainder is tied to a U.S. dollar equivalent at the point of sale.
Also, some of these sales are supported by letters of credit and
promissory notes promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. . To further mitigate risk of any currency restrictions,
the majority of these sales are deposited to offshore dollar accounts.
Furthermore, Agrium's retail subsidiary Agroservicios Pampeanos
S.A. also conducts sales both on a U.S. dollar basis or through
Argentina Pesos tied to a U.S. dollar equivalent at the point of sale.
The recent announcements by the Argentine finance minister, which
essentially result in a tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic on imports and subsidy subsidy, financial assistance granted by a government or philanthropic foundation to a person or association for the purpose of promoting an enterprise considered beneficial to the public welfare. on exports with
the partial 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. of the Peso, are anticipated to be slightly
positive to Agrium's operations as a result of the export
capability of the Profertil nitrogen complex and the benefits to
Agrium's customers from higher export revenues for agricultural
products.
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.
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A WEBSITE SIMULCAST
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of the 2nd Quarter Conference Call will be available in a
listen-only mode beginning
Tuesday, July 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)
As at As at
June 30, December 31,
------------------ -------------
2001 2000 2000
------------------ -------------
(Unaudited)
ASSETS
Current assets
Cash and cash-equivalents $ 40 $ 105 $ 18
Accounts receivable 290 282 275
Income and other taxes receivable - - 28
Inventories 454 251 347
Prepaid expenses 21 15 20
------ ----------- -------------
805 653 688
Capital assets 1,505 1,166 1,484
Other assets 176 128 150
Goodwill 47 51 49
------ ----------- -------------
$ 2,533 $ 1,998 $ 2,371
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ 183 $ 157 $ 308
Accounts payable and accrued
liabilities 335 302 370
Income and other taxes payable 26 29 -
Current portion of long-term debt - 1 1
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544 489 679
Long-term debt
Profertil project financing 146 - -
Other 630 502 507
------ ----------- -------------
776 502 507
Other liabilities 133 76 120
Future income taxes 182 155 197
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1,635 1,222 1,503
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Shareholders' equity
Share capital
Authorized: unlimited common shares
and preferred securities
Issued:
Common shares: 2001- 115 million
(June 30, 2000-112 million) 376 348 375
Preferred securities:
8% Non-convertible 2001- 7 million
(June 30, 2000- 7 million) 171 171 171
6% Convertible 2001- 2 million
(June 30, 2000- nil) 50 - 50
Retained earnings 355 290 315
Cumulative translation adjustment (54) (33) (43)
------ ----------- -------------
898 776 868
------ ----------- -------------
$ 2,533 $ 1,998 $ 2,371
------ ----------- -------------
------ ----------- -------------
As at June 30, 2001, the Corporation has outstanding 7,789,930
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 Six months
June 30, ended June 30,
------------------ ---------------
2001 2000 2001 2000
------------------ ---------------
Net sales $ 803 $ 700 $ 1,184 $ 1,010
Cost of product 589 507 845 730
------------------ ---------------
Gross profit 214 193 339 280
------------------ ---------------
Expenses
Selling, general and
administrative 74 71 131 125
Depreciation, depletion and
amortization 31 26 63 50
Other expense 18 10 25 17
------------------ ---------------
123 107 219 192
------------------ ---------------
Earnings before interest expense
and income taxes 91 86 120 88
Interest on long-term debt 15 9 26 18
Other interest 4 - 11 -
Income taxes 27 26 31 24
------------------ ---------------
Net earnings for the period 45 51 52 46
Retained earnings - beginning
of period 319 247 315 255
Common share dividends declared (6) (6) (6) (6)
Preferred securities charges (3) (2) (6) (5)
------------------ ---------------
Retained earnings - end of
period $ 355 $ 290 $ 355 $ 290
------------------ ---------------
------------------ ---------------
Basic earnings per common share $0.37 $0.44 $0.41 $0.38
Average outstanding shares
(in millions) 115 112 115 112
Diluted earnings per common share $0.33 $0.39 $0.39 $0.35
Average outstanding shares
(in millions) 135 132 134 132
Shares outstanding at end of
period (in millions) 115 112 115 112
AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
Three months ended Six months
June 30, ended June 30,
------------------ ---------------
2001 2000 2001 2000
------------------ ---------------
Operating:
Net earnings for the period $ 45 $ 51 $ 52 $ 46
Depreciation, depletion and
amortization 31 26 63 50
Future income taxes (15) (7) (16) (6)
------------------ ---------------
Cash provided by operating
activities, before changes in
non-cash working capital 61 70 99 90
Net changes in non-cash working
capital 47 59 (103) 58
------------------ ---------------
Cash provided by (used in)
operating activities 108 129 (4) 148
------------------ ---------------
Investing:
Capital assets (48) (43) (85) (82)
Other assets (8) (12) (29) (22)
Net changes in non-cash working
capital - (14) - (28)
Proceeds from disposal of assets
and investments 1 4 2 10
Other 2 1 4 3
------------------ ---------------
Cash used in investing activities (53) (64) (108) (119)
------------------ ---------------
Financing:
Common shares - - 1 -
Bank indebtedness (52) - (125) (22)
Long-term debt 40 4 270 5
Common share dividends paid - - (6) (6)
Preferred securities charges paid (3) (2) (6) (5)
------------------ ---------------
Cash provided by (used in)
financing activities (15) 2 134 (28)
------------------ ---------------
Increase in cash position 40 67 22 1
Cash and cash-equivalents -
beginning of period - 38 18 104
------------------ ---------------
Cash and cash-equivalents -
end of period $ 40 $ 105 $ 40 $ 105
------------------ ---------------
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 December: see month. 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 $0.39 for the second quarter ended June 30, 2000, and $0.35 for the six months ended June 30, 2000, were previously reported under the fully diluted earnings per share method as $0.42 and $0.37, respectively. For the year ended December 31, 2000, the diluted earnings per share computed under this method would have been $0.62 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. 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 June 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 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 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.
Segmented EBIT for the three months ended June 30,
---------------------------------------------
2001
---------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external customers $ 373 $ 395 $ 14 $ 21 $ - $ 803
- internal customers 26 - 2 - (28) -
---------------------------------------------
Total net sales 399 395 16 21 (28) 803
Cost of product 301 293 10 15 (30) 589
---------------------------------------------
Gross profit 98 102 6 6 2 214
Expenses:
Selling, general and
administrative 7 55 2 4 6 74
Depreciation, depletion
and amortization 20 5 3 1 2 31
Other (income)
expense-net 9 - 1 - 8 18
---------------------------------------------
36 60 6 5 16 123
---------------------------------------------
Earnings before interest
expense and income
taxes $ 62 $ 42 $ - $ 1 $ (14)$ 91
---------------------------------------------
Segmented EBIT for the three months ended June 30,
---------------------------------------------
2000
---------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net Sales
- external customers $ 307 $ 379 $ 3 $ 11 $ - $ 700
- internal customers 18 - - - (18) -
---------------------------------------------
Total net sales 325 379 3 11 (18) 700
Cost of product 235 280 2 8 (18) 507
---------------------------------------------
Gross profit 90 99 1 3 - 193
Expenses:
Selling, general and
administrative 8 54 1 3 5 71
Depreciation, depletion
and amortization 17 5 - 1 3 26
Other (income)
expense-net 5 - - 2 3 10
---------------------------------------------
30 59 1 6 11 107
---------------------------------------------
Earnings before interest
expense and income
taxes $ 60 $ 40 $ - $ (3) $(11) $ 86
---------------------------------------------
Segmented EBIT for the six months ended June 30,
---------------------------------------------
2001
---------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net sales
- external customers $ 624 $ 504 $ 28 $ 28 $ - $ 1,184
- internal customers 38 - 3 - (41) -
---------------------------------------------
Total net sales 662 504 31 28 (41) 1,184
Cost of product 483 365 17 21 (41) 845
---------------------------------------------
Gross profit 179 139 14 7 - 339
Expenses:
Selling, general and
Administrative 14 97 3 6 11 131
Depreciation,
depletion and
amortization 42 9 6 3 3 63
Other (income)
expense-net 13 (2) 1 - 13 25
---------------------------------------------
69 104 10 9 27 219
---------------------------------------------
Earnings before interest
expense and income
taxes $ 110 $ 35 $ 4 $ (2) $ (27)$ 120
---------------------------------------------
Segmented EBIT for the six months ended June 30,
---------------------------------------------
2000
---------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
--------- ------ --------- ------ ----- -----
Net Sales
- external customers$ 494 $ 495 $ 4 $ 17 $ - $1,010
- internal customers 30 - - - (30) -
---------------------------------------------
Total net sales 524 495 4 17 (30) 1,010
Cost of product 384 361 3 13 (31) 730
---------------------------------------------
Gross profit 140 134 1 4 1 280
Expenses:
Selling, general and
administrative 14 94 2 6 9 125
Depreciation, depletion
and amortization 33 10 - 2 5 50
Other (income)
expense-net 9 (3) - 2 9 17
---------------------------------------------
56 101 2 10 23 192
---------------------------------------------
Earnings before
Interest expense and
income taxes $ 84 $ 33 $ (1) $ (6)$(22) $ 88
---------------------------------------
AGRIUM INC.
Supplementary Information
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars)
(Unaudited)
Three months ended June 30,
----------------------------------------------
2001
----------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
--------------
Sales Product Profit Sales Production($/Tonne)
----------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 126 $ 85 $ 41 511 326 $ 80
Urea 92 72 20 553 548 36
Nitrate and other 54 43 11 319 244 34
---------------------------------------------
Total Nitrogen 272 200 72 1,383 1,118 52
Phosphate - Dry 47 48 (1) 233 174 (4)
Phosphate - Liquid 11 9 2 29 29 69
Potash 43 25 18 421 370 43
Sulphate and other
products 26 19 7 167 66 42
---------------------------------------------
399 301 98 2,233 1,757 44
-------------------------
North America Retail
Fertilizers 184 132 52
Chemicals 159 132 27
Other products and
services 52 29 23
-------------------
395 293 102
South America Wholesale
Nitrogen 14 9 5 126 108 40
Other products and
services 2 1 1
-------------------
16 10 6
South America Retail
Fertilizers 17 12 5
Other products and
services 4 3 1
-------------------
21 15 6
Other (28) (30) 2
-------------------
Total $ 803 $ 589 $ 214
-------------------
Three months ended June 30,
----------------------------------------------
2000
----------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
--------------
Sales Product Profit Sales Production($/Tonne)
----------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 78 $ 59 $ 19 480 344 $ 40
Urea 78 53 25 532 490 47
Nitrate and other 25 19 6 226 124 27
----------------------------------------------
Total Nitrogen 181 131 50 1,238 958 40
Phosphate - Dry 66 58 8 324 196 25
Phosphate - Liquid 12 7 5 31 33 161
Potash 44 23 21 442 435 48
Sulphate and other
products 22 16 6 160 65 38
----------------------------------------------
325 235 90 2,195 1,687 41
--------------------------
North America Retail
Fertilizers 157 113 44
Chemicals 175 144 31
Other products and
services 47 23 24
--------------------
379 280 99
South America Wholesale
Nitrogen - - - - - -
Other products and
services 3 2 1
--------------------
3 2 1
South America Retail
Fertilizers 8 6 2
Other products and
services 3 2 1
--------------------
11 8 3
Other (18) (18) -
--------------------
Total $ 700 $ 507 $ 193
--------------------
Six months ended June 30,
----------------------------------------------
2001
----------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
--------------
Sales Product Profit Sales Production($/Tonne)
----------------------------------------------
North America
Wholesale
Nitrogen
Ammonia $ 203 $ 132 $ 71 854 779 $ 83
Urea 170 126 44 987 1,223 45
Nitrate and other 90 70 20 527 596 38
----------------------------------------------
Total Nitrogen 463 328 135 2,368 2,598 57
Phosphate - Dry 65 67 (2) 322 371 (6)
Phosphate - Liquid 23 17 6 58 66 103
Potash 73 42 31 719 797 43
Sulphate and other
products 38 29 9 244 137 37
----------------------------------------------
662 483 179 3,711 3,969 48
-------------------------
North America Retail
Fertilizers 241 174 67
Chemicals 199 155 44
Other products and
services 64 36 28
----------------------
504 365 139
South America Wholesale
Nitrogen 29 16 13 218 210 60
Other products and
services 2 1 1
----------------------
31 17 14
South America Retail
Fertilizers 20 14 6
Other products and
services 8 7 1
----------------------
28 21 7
Other (41) (41) -
----------------------
Total $ 1,184 $ 845 $ 339
----------------------
Six months ended June 30,
-------------------------------------
2000
----------------------------------------------
Net Cost of Gross Tonnes (000's) Margin
--------------
Sales Product Profit Sales Production($/Tonne)
----------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 112 $ 86 $ 26 720 655 36
Urea 135 98 37 987 921 37
Nitrate and other 41 33 8 365 242 22
----------------------------------------------
Total Nitrogen 288 217 71 2,072 1,818 34
Phosphate - Dry 93 83 10 466 452 21
Phosphate - Liquid 20 11 9 49 54 184
Potash 85 44 41 865 876 47
Sulphate and other
products 38 29 9 251 148 36
----------------------------------------------
524 384 140 3,703 3,348 38
--------------------------
North America Retail
Fertilizers 214 155 59
Chemicals 222 176 46
Other products and
services 59 30 29
--------------------
495 361 134
South America Wholesale
Nitrogen - - - - - -
Other products and
services 4 3 1
--------------------
4 3 1
South America Retail
Fertilizers 11 8 3
Other products and
services 6 5 1
--------------------
17 13 4
Other (30) (31) 1
--------------------
Total $ 1,010 $ 730 $ 280
--------------------
AGRIUM INC.
Supplementary Information
Net Sales and Gross Profit by Market Destination
(Millions of U.S. dollars)
(Unaudited)
Three months ended June 30,
----------------------------------------------
2001
----------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit% (000's) ($/Tonne)
----------------------------------------------
North America
Nitrogen $ 237 $ 172 $ 65 27% 1,061 $ 61
Phosphate 58 57 1 2% 262 4
Potash 31 20 11 35% 272 40
Sulphate and other
products 25 18 7 28% 161 -
North America Retail 395 293 102 26% - -
Other (28) (30) 2 -7% - -
----------------------------------------------
718 530 188 26% 1,756 -
International
Nitrogen 49 37 12 24% 448 27
Potash 12 5 7 58% 149 47
Sulphate and other
products 3 2 1 33% 6 -
South America Retail 21 15 6 29% - -
----------------------------------------------
85 59 26 31% 603 -
----------------------------------------------
Total $ 803 $ 589 $ 214 27% 2,359 -
----------------------------------------------
----------------------------------------------
Three months ended June 30,
----------------------------------------------
2000
----------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit% (000's) ($/Tonne)
----------------------------------------------
North America
Nitrogen $ 177 $ 128 $ 49 28% 1,205 $ 41
Phosphate 78 65 13 17% 355 37
Potash 30 17 13 43% 274 47
Sulphate and other
products 21 16 5 24% 147 -
North America Retail 379 280 99 26% - -
Other (18) (18) 0 - - -
----------------------------------------------
667 488 179 27% 1,981 -
International
Nitrogen 4 3 1 25% 33 30
Potash 14 6 8 57% 168 48
Sulphate and other
products 4 2 2 50% 13 -
South America Retail 11 8 3 27% - -
----------------------------------------------
33 19 14 42% 214 -
----------------------------------------------
Total $ 700 $ 507 $ 193 28% 2,195 -
----------------------------------------------
----------------------------------------------
Six months ended June 30,
----------------------------------------------
2001
----------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit% (000's) ($/Tonne)
----------------------------------------------
North America
Nitrogen $ 362 261 $ 101 28% 1,689 $ 60
Phosphate 88 84 4 5% 380 11
Potash 50 32 18 36% 436 41
Sulphate and other
products 38 28 10 26% 226 -
North America Retail 504 365 139 28% - -
Other (41) (41) - - - -
----------------------------------------------
1,001 729 272 27% 2,731 -
International
Nitrogen 128 83 45 35% 897 50
Potash 23 10 13 57% 283 46
Sulphate and other
products 4 3 1 25% 18 -
South America Retail 28 20 8 29% - -
----------------------------------------------
183 116 67 37% 1,198 -
----------------------------------------------
Total $ 1,184 $ 845 $ 339 29% 3,929 $ -
----------------------------------------------
----------------------------------------------
Six months ended June 30,
----------------------------------------------
2000
----------------------------------------------
Net Cost of Gross Gross Tonnes Margin
Sales Product Profit Profit% (000's) ($/Tonne)
----------------------------------------------
North America
Nitrogen $ 281 $ 210 71 25% 2,001 $ 35
Phosphate 113 94 19 17% 515 37
Potash 56 32 24 43% 506 47
Sulphate and other
products 35 26 9 26% 224 -
North America Retail 495 361 134 27% - -
Other (30) (31) 1 -3% - -
----------------------------------------------
950 692 258 27% 3,246 -
International
Nitrogen 7 7 - - 71 -
Potash 29 12 17 59% 359 47
Sulphate and other
products 7 6 1 14% 27 -
South America Retail 17 13 4 24% - -
----------------------------------------------
60 38 22 37% 457 -
----------------------------------------------
Total $ 1,010 $ 730 $ 280 28% 3,703 $ -
----------------------------------------------
----------------------------------------------
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