Part 2 of 2 - Agrium Inc. Reports Third Quarter Net Earnings of $16.1 Million or $0.13 Per Share; Cash Flow Up 38 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. 27, 1997--Agrium Inc.(TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). , 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 .) The Corporation recently announced that it will spend $70 million over the next two years to develop a high quality 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 deposit located near 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. , and modify its 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. phosphate 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. production facility to enable the plant to process the new rock. The high grade, low cost mine is expected to supply 100 percent of the phosphate rock phosphate rock n. Any of various rocks composed largely of phosphate minerals, especially apatite, used as fertilizer and as a source of phosphorous compounds. required by the Redwater redwater red urine; see hemoglobinuria, hematuria, myoglobinuria, phenothiazine, phenolphthalein, xanthorrhoea. redwater fever see babesiosis. plant for approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 20 years. Work on the project will begin immediately. The Kapuskasing property was acquired by the Corporation when it merged with Viridian vi·rid·i·an n. A durable bluish-green pigment. [From Latin viridis, green; see virid.] Inc. in December December: see month. , 1996. Until the new mine comes on stream in 1999, the Corporation will continue to import rock from Togo Togo, officially Togolese Republic, republic (2005 est. pop. 5,682,000), 21,622 sq mi (56,000 sq km), W Africa. It borders on the Gulf of Guinea in the south, on Ghana in the west, on Burkina Faso in the north, and on Benin in the east. , Africa, which has provided a reliable supply of rock to the plant since 1986. In September September: see month. , 1997, the Corporation initiated a Normal Course Issuer Bid allowing it to purchase up to five percent (approximately 6.35 million) of its outstanding Common Shares through The Toronto Stock Exchange Toronto Stock Exchange (TSE) Canada's largest stock exchange, trading approximately 1,200 company stocks and 33 options. . The Corporation believes that the current market prices of its shares do not reflect the underlying value and that a share repurchase Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. program provides value by reducing the number of shares outstanding at attractive prices. Strong cash flows will allow the Corporation to maintain its strategic growth and debt reduction objectives while reducing shares outstanding. Purchases through October October: see month. 17, 1997 totalled 299,600 Common Shares at a cost of $12.27 per share. In May, 1997, the Corporation finalized See finalization. its negotiations to join Perez Companc Perez Companc could refer to
YPF Esquimalt, British Columbia, Canada (Airport Code) YPF Young Peoples Fellowship S.A. to build a 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. production facility 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. . Each party will own a one-third stake in Profertil S.A. to build the plant which is expected to cost approximately $450 million (excluding Argentinean Value Added Tax value added tax n (BRIT) → impuesto sobre el valor añadido or agregado (LAM) value added tax n (Brit ), and construction is expected to commence in the first quarter of 1998. Approximately 70 percent of the construction will be project financed on a non-recourse basis. CORPORATE PROFILE 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. is a major international producer and marketer of fertilizers to the agricultural industry. The Corporation manufactures three primary fertilizer nutrients: nitrogen, phosphate and potash potash: see potassium carbonate. potash Name used for various inorganic compounds of potassium, chiefly the carbonate (K2CO3), a white crystalline material formerly obtained from wood ashes. and sells directly to the market place through a direct retail distribution operation. The Corporation's strategy is to grow through expansion of its existing operations and international opportunities as well as the development and commercialization of new products and services. -0-
AGRIUM INC.
Consolidated Balance Sheets
(Thousands of U.S. dollars)
(Unaudited)
As at As at
September 30 December 31
-------------------- -----------
1997 1996 1996
--------------------- -----------
ASSETS
Current Assets
Cash and short term
investments $16,988 $216,302 $52,468
Accounts receivable 312,256 363,393 259,143
Income tax recovery 4,042 2,527 10,231
Inventories 255,871 231,513 235,826
Prepaid expenses 33,368 43,912 47,279
---------------------- --------
622,525 857,647 604,947
Capital assets 851,586 825,546 821,405
Goodwill 59,817 62,304 62,225
Other assets 114,549 125,137 101,957
---------------------- ----------
$1,648,477 $1,870,634 $1,590,534
----------------------- ----------
----------------------- ----------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Bank indebtedness $ 122,331 $ 123,687 $ 298,353
Accounts payable and
accrued liabilities 191,723 248,175 252,102
Dividends payable - - 3,667
Principal repayments on
long-term debt 1,085 3,269 2,624
------------------------- ---------
315,139 375,131 556,746
Long-term debt 483,219 577,891 184,339
Other liabilities 61,392 69,952 71,014
Deferred income taxes 144,350 96,548 67,089
Minority interest 10,210 27,374 10,261
------------------------ ---------
1,014,310 1,146,896 889,449
------------------------ ---------
Shareholders' Equity
Share capital 392,077 423,618 431,148
Contributed surplus - 50,733 50,733
Retained earnings 234,610 222,651 203,696
Cumulative translation
adjustment 7,480 26,736 15,508
----------------------- ----------
634,167 723,738 701,085
----------------------- ----------
$1,648,477 $1,870,634 $1,590,534
------------------------ -----------
------------------------ -----------
AGRIUM INC.
Consolidated Statements of Operations
(Thousands of U.S. dollars except per share information)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
---------------------------------------------
1997 1996 1997 1996
---------------------------------------------
Net sales $400,102 $429,776 $1,500,249 $1,513,692
Cost of product 271,822 299,982 962,793 960,449
---------------------------------------------
Gross profit 128,280 129,794 537,456 553,243
---------------------------------------------
Expenses
Selling 52,071 47,201 152,776 142,859
General and
administrative 11,308 9,116 33,017 28,665
Depreciation and
amortization 21,883 18,762 62,820 60,825
Research and
development 1,188 908 3,503 2,978
Royalties, resource
and other taxes 2,393 1,912 9,636 7,985
Interest income
and other (2,101) 37 (11,656) (10,093)
--------------------------------------------
86,742 77,936 250,096 233,219
--------------------------------------------
Earnings from continuing operations
before interest
and income taxes 41,538 51,858 287,360 320,024
Interest on
long-term debt 8,687 14,041 25,560 42,054
Other interest 2,933 1,532 8,966 2,254
Income taxes 13,849 13,225 104,353 104,454
-------------------------------------------
Earnings from continuing
operations 16,069 23,060 148,481 171,262
-------------------------------------------
Discontinued operations,
net of income taxes - 295 - (9,158)
-------------------------------------------
Net earnings for
the period $16,069 $23,355 $148,481 $162,104
--------------------------------------------
--------------------------------------------
Basic earnings per
common share
Continuing
Operations $0.13 $0.17 $1.14 $1.25
Total $0.13 $0.17 $1.14 $1.18
Average outstanding
shares
(in thousands) 127,056 138,146 129,764 137,154
Fully diluted
earnings per
common share
Continuing
Operations $0.13 $0.16 $1.11 $1.20
Total $0.13 $0.16 $1.11 $1.14
Average outstanding
shares
(in thousands) 131,823 142,799 134,627 142,474
AGRIUM INC.
Consolidated Statements of Changes in Financial Position
(Thousands of U.S. dollars)
(Unaudited)
Three months ended Nine months ended
September 30 September 30
---------------------------------------------
1997 1996 1997 1996
---------------------------------------------
Operating:
Earnings from continuing
operations $ 16,069 $ 23,060 $ 148,481 $ 171,262
Add (deduct) items
not involving cash
Depreciation and
amortization 21,883 18,762 62,820 60,825
Deferred income
taxes 7,166 (15,946) 77,766 2,402
Other (3,687) 4,054 (4,012) 216
--------------------------------------------
Cash provided by continuing
operations, before
changes in non-cash
working capital 41,431 29,930 285,055 234,705
Net change in non-cash
working capital (6,904) (32,535) (113,437) (150,271)
--------------------------------------------
Cash provided by
continuing
operations 34,527 (2,605) 171,618 84,434
Cash provided by
discontinued
operations - 16,525 - 18,029
-------------------------------------------
Cash provided by
operating
activities 34,527 13,920 171,618 102,463
-------------------------------------------
Investing:
Acquisition of subsidiaries,
net of cash acquired - (1,168) - (30,162)
Capital assets -
continuing
operations (27,690) (58,905) (91,103) (135,303)
Proceeds from disposal
of assets and
investments 2,543 12,286 2,847 12,757
Disposal of oil and
gas interests - - - 60,416
Cash received (paid) on
distributions to shareholders
of discontinued
operations - - - (136,552)
Other (2,939) (191,704) (29,053) (66,495)
--------------------------------------------
Cash provided by (used in)
investing
activities (28,086) (239,491) (117,309) (295,339)
---------------------------------------------
Financing:
Common shares (2,035) 5,738 (200,293) (4,152)
Bank indebtedness 6,891 123,860 (176,022) 138,919
Issue of long-term
debt (1,563) (1,169) 297,272 (10,995)
Dividends paid (7,079) (56,882) (10,746) (61,121)
--------------------------------------------
Cash provided by (used in)
financing
activities (3,786) 71,547 (89,789) 62,651
-------------------------------------------
Increase (decrease)
in cash position 2,655 (154,024) (35,480) (130,225)
Cash position
beginning of
period 14,333 370,326 52,468 346,527
-------------------------------------------
Cash position end
of period $16,988 $216,302 $16,988 $216,302
--------------------------------------------
--------------------------------------------
CONTACT: Agrium Inc. Ian Chadsey, 403/ 258-4694 800/399-3821 (Automatic Faxback) (FAX) investor-rel@agrium.com http://www.agrium.com |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion