Agrium third quarter earnings up 245 percent.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. 25, 1995--Agrium Inc. has announced record net earnings for the third quarter of 1995, 245 percent higher than the same quarter in 1994. Unaudited consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: net earnings amounted to $32.6 million ($1.46 per common share) compared with $9.5 million ($0.42 per common share) in the third quarter of 1994. Net earnings for the nine months ended Sept. 30, 1995 totalled $124.2 million ($5.54 per common share); an 87 percent increase over earnings of $66.6 million ($3.24 per common share) for the comparable period of 1994. "Continued strong prices and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. natural gas costs are combining to generate 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. margins at levels we have not seen for almost two decades. The recent 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. sale to China by Canpotex at higher prices now ensures strength in the international potash business for the balance of the fertilizer year. Prices and demand for 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 fertilizers are also strengthening, making our acqusition of Nu-West Industries particularly timely," said John M. 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 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. 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. . "Overall, the outlook for the remainder of the fertilizer year, and for the years ahead, continues to be excellent. Long term fundamentals, such as record low world grain inventories and strong GDP GDP (guanosine diphosphate): see guanine. growth in developing countries should ensure this." Selected production and wholesale sales volumes in thousands of tonnes: -0-
Nine months ended September 30,
--------------------------------------
1995 1994
----------------- ------------------
Production Sales Production Sales
----------------- ------------------
Ammonia 534 508 574 546
Urea 532 521 465 529
Ammonium Nitrate 120 141 126 173
Potash (KCl) 1,008 971 882 937
---------------- ------------------
2,194 2,141 2,047 2,185
---------------- ------------------
---------------- ------------------
-0- Sales and gross profit in millions of dollars:
Nine months ended September 30,
-----------------------------------------
1995 1994
------------------- ------------------
Sales Gross Profit Sales Gross Profit
-------------------- -------------------
Wholesale
Nitrogen $321.8 $154.1 $281.8 $72.2
Potash 130.4 50.3 119.8 35.9
Other Products 49.4 4.3 33.0 5.1
------------------------------------------
501.6 208.7 434.6 113.2
Retail 834.6 219.1 419.0 118.3
Eliminations (29.6) (0.1) (16.5) (0.1)
---------------------------------------------
$1,306.6 $427.7 $837.1 $231.4
---------------------------------------------
---------------------------------------------
-0-WHOLESALE PRODUCT GROSS PROFIT CONTINUES TO REFLECT ROBUST MARGINS
Wholesale sales revenues for the first nine months of 1995 increased by $67.0 million or 15 percent, while related gross profit was up $95.5 million or 84 percent over the comparable period in 1994. The results reflect stronger margins for all wholesale products, particularly nitrogen products. Nitrogen product gross profit for the first nine months of 1995 amounted to $154.1 million, an increase of $81.9 million or 113 percent over the same period in 1994. The increase resulted principally from higher selling prices and lower production costs, partially offset by somewhat lower sales volumes. Production costs during 1995 continue to benefit from natural gas prices which are approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 30 percent lower than in 1994. Third quarter nitrogen gross profit totalled $46.1 million, a 160 percent increase over the same quarter of 1994. The most significant contributors to the increase in gross profit was higher urea selling prices, and to a lesser extent higher sales volumes. Demand for urea remains strong reflecting tight availability of the product worldwide. Potash gross profit for the first nine months of 1995 was $50.3 million, up $14.4 million or 40 percent over the comparable period in 1994. The increase was primarily due to higher realized prices, reduced unit production costs and to a lesser extent increased sales volumes. The higher sales volumes reflect strong demand from offshore markets partially offset by a slight reduction in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales volumes due to wet spring weather in prime market areas. Record production levels during the first nine months of 1995 helped reduce unit production costs. Third quarter potash gross profit totalled $10.5 million, an 11 percent reduction from the same quarter of 1994. The decrease resulted from lower offshore sales volumes. RETAIL RESULTS IMPROVE IN THE QUARTER Combined retail sales of Western Farm Service, Inc. (WFS WFS Wegfahrsperre (German: drive away blocking system) WFS Web Feature Service WFS World Future Society WFS World Food Summit WFS Wave Front Sensor WFS Wolfram Syndrome WFS Wire Feed Speed (welding) ) and Crop Production Services, Inc. (CPS (1) (Characters Per Second) The measurement of the speed of a serial printer or the speed of a data transfer between hardware devices or over a communications channel. CPS is equivalent to bytes per second. ) for the first nine months of 1995 totalled $834.6 million and generated gross profit of $219.1 million. This compares with sales of $419.0 million and gross profit of $118.3 million for CPS during the same period of 1994. While inclement in·clem·ent adj. 1. Stormy: inclement weather. 2. Showing no clemency; unmerciful. in·clem weather delayed first quarter 1995 agricultural activities in traditionally early markets like 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). , and continued in the second quarter in other retail market areas, the third quarter showed a strong increase in retail sales and profitability compared with seasonal norms, largely the result of the delayed application season. Selling, general and administrative expense for the retail operations during the first nine months of 1995 was $151.9 million. Depreciation and amortization was $19.4 million. Comparable expenses for 1994 were $80.2 million and $10.6 million, respectively. The inclusion of WFS, acquired in January January: see month. , 1995, was primarily responsible for the increases. Third quarter sales were $265.3 million with corresponding gross profit of $69.8 million. CPS sales and gross profit were $97.6 million and $29.7 million during the same period of 1994. Selling, general and administrative expense for retail operations during the quarter was $50.6 million while depreciation and amortization was $6.5 million. Comparative amounts for 1994 were $23.4 million and $3.6 million respectively. FINANCIAL AND OTHER INFORMATION Cash provided by operations, before changes in non-cash working capital, was $156.9 million ($7.11 per common share) compared with $99.5 million ($4.84 per common share) during the same period of 1994. Working capital at September September: see month. 30, 1995 was $248.8 million. 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. was $46.1 million or 8 percent of combined long-term debt and shareholders' equity Shareholders' Equity A firms' total assets minus its total liabilities. Equivalently, it is share capital plus retained earnings minus treasury shares. Shareholders' equity is the amount by which a company is financed through common and preferred shares. . The Company's effective income tax rate has increased in 1995, when compared with 1994, due to a reduction in the relative benefit of tax deductions Tax deduction An expense that a taxpayer is allowed to deduct from taxable income. tax deduction See deduction. as income levels increase. Through September 1995, the Company purchased 484,300 of its Common Shares at an average cost of $41.37 per share pursuant to a Normal Course Issuer Bid initiated in March 1995. SUBSEQUENT EVENT During October October: see month. 1995, the Company acquired, pursuant to a tender offer, approximately 8.9 million common shares (95 percent) of Nu-West Industries Inc. (Nu-West) for cash consideration of U.S. $93.3 million. The balance of the outstanding common shares will be acquired in a followup followup - On Usenet, a posting generated in response to another posting (as opposed to a reply, which goes by e-mail rather than being broadcast). Followups include the ID of the parent message in their headers; smart news-readers can use this information to present Usenet news in merger. Nu-West, with production facilities located in Soda Springs, Idaho Soda Springs is a city in Caribou County, Idaho, United States. The population was 3,381 at the 2000 census. The city is the county seat of Caribou CountyGR6. , is a producer and wholesale marketer of phosphate fertilizer products. This acquisition will be accounted for using the purchase method. The allocation The apportionment or designation of an item for a specific purpose or to a particular place. In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as of the purchase price to the net assets Net assets The difference between total assets on the one hand and current liabilities and noncapitalized long-term liabilities on the other hand. net assets See owners' equity. acquired is principally subject to completion of certain asset appraisals and will be disclosed dis·close tr.v. dis·closed, dis·clos·ing, dis·clos·es 1. To expose to view, as by removing a cover; uncover. 2. To make known (something heretofore kept secret). in the 1995 annual audited financial statements. Agrium Inc. is one of North America's largest integrated and diversified diversified (di·verˑ·s fertilizer companies. -0- AGRIUM INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Thousands of dollars) (Unaudited)
September 30, December 31,
1995 1994
------------ ------------
Assets
Current assets $ 532,727 $ 376,685
Capital assets 342,503 264,465
Other assets 33,054 15,339
------------- ------------
$908,284 $656,489
------------- ------------
------------- ------------
Liabilities and Shareholders' Equity
Current liabilities $ 283,904 $ 167,760
Long-term debt 46,077 50,246
Deferred liabibilities 10,643 8,991
Deferred income taxes 35,294 30,803
Shareholders' equity 532,366 398,689
--------- ----------
$908,284 $656,489
--------- ----------
--------- ----------
AGRIUM INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Thousands of dollars except per share information)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
--------------------------------------
1995 1994 1995 1994
--------------------------------------
Sales $393,865 $213,994 $1,306,614 $837,129
-------------------------------------------
Cost of product 239,945 128,144 785,417 508,441
Transportation
and storage 27,908 25,378 93,541 97,338
------------------------------------------
267,853 153,522 878,958 605,779
------------------------------------------
Gross profit 126,012 60,472 427,656 231,350
------------------------------------------
Expenses
Selling, general and administrative 58,729 32,544 183,203 105,380 Depreciation and amortization 10,232 7,591 30,699 22,146 Royalties, resource and other taxes 5,146 2,918 14,682 9,398 Interest 3,412 1,925 8,749 6,251
Other (3,711) (1,542) (6,047) (4,634)
-----------------------------------------
73,808 43,436 231,286 138,541
-----------------------------------------
Earnings before income taxes 52,204 17,036 196,370 92,809
Income taxes 19,577 7,579 72,146 26,257
----------------------------------------
Net earnings
for the period $32,627 $9,457 $124,224 $66,552
-----------------------------------------
-----------------------------------------
Basic earnings per common share 1.46 0.42 5.54 3.24 Average outstanding shares (in thousands) 21,875 22,255 22,087 20,553 Fully diluted earnings per common share 1.39 0.42 5.26 3.23 Average outstanding shares (in thousands) 23,543 22,387 23,708 20,645 -0-
AGRIUM INC.
CONSOLIDATED STATEMENTS OF CHANGES IN FINANCIAL POSITION
(Thousands of dollars)
(Unaudited)
Nine months ended
September 30
-------------------------
1995 1994
-------------------------
Operating: Net earnings for the period $124,224 $66,552 Add (deduct) items not involving cash
Depreciation and amortization 30,699 22,146
Deferred income taxes 304 12,201
Other 1,707 (1,375)
--------------------------
Cash provided by operating activities, before
changes in non-cash
working capital 156,934 99,524
Net change in non-cash
working capital (64,181) 15,525
-------------------------
Cash provided by operating
activities 92,753 115,049
-------------------------
Investing:
Acquisition of subsidiaries,
net of cash acquired (45,064) (7,209)
Capital and other assets (60,656) (31,902)
Proceeds from disposal of assets
and investments 2,453 1,036
--------------------------
Cash used in investing
activities (103,267) (38,075)
---------------------------
Financing:
Issue (repurchase) of common
shares (net) (19,152) 103,822
Share issue costs - (2,392)
Issue of preferred shares 44,188 -
Issue of long-term debt on
acquisition of subsidiary - 6,336
Repayment of long-term debt (30,734) (96,741)
Dividends paid on
common shares (9,970) (9,057)
Dividends paid on preferred
shares (1,160) -
-------------------------
Cash provided by (used in)
financing activities (16,828) 1,968
-------------------------
Increase (Decrease) in cash
position (27,342) 78,942
Cash position beginning
of period 89,762 4,524
-------------------------
Cash position end of period $62,420 $83,466
-------------------------
-------------------------
CONTACT: Agrium Dick Nichols Richard Nichols (born April 29, 1926) is a U.S. Representative from Kansas. Born in Fort Scott, Kansas, Nichols attended public schools. He earned his B.S. from Kansas State University in 1951. He was ensign in the United States Navy from 1944 to 1947. , 403/258-5746 or Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Thiessen, 403/258-4615 INDUSTRY KEYWORD (1) A word used in a text search. (2) A word in a text document that is used in an index to best describe the contents of the document. (3) A reserved word in a programming or command language. 1. : EARNINGS REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston Boston, town, England Boston, town (1991 pop. 26,495), E central England, on the Witham River. Boston's fame as a port dates from the 13th cent., when it was a Hanseatic port trading wool and wine. Having recovered from a decline in the 18th and 19th cent. 617-236-4266 or 80 |
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