Agrium Inc.
NYSE : AGU
TSX : AGU

Agrium Inc.

February 09, 2011 07:01 ET

Agrium Reports Record Fourth Quarter Results

CALGARY, ALBERTA--(Marketwire - Feb. 9, 2011) -

ALL AMOUNTS ARE STATED IN U.S.$ UNLESS OTHERWISE INDICATED

Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today net earnings of $158-million ($1.00 diluted earnings per share) for the fourth quarter of 2010, compared with the net earnings of $30-million in the fourth quarter of 2009 ($0.19 diluted earnings per share). Net earnings from continuing operations, which exclude losses associated with AWB Limited ("AWB") Commodity Management business which is under a definitive sales agreement to Cargill Incorporated ("Cargill"), were $175-million ($1.10 diluted earnings per share) for the fourth quarter of 2010. On an annual basis, 2010 net earnings were $714-million and $4.52 diluted earnings per share ($731-million and $4.63 diluted earnings per share from continuing operations basis), as compared to net earnings of $366-million ($2.33 diluted earnings per share) in 2009.

The 2010 fourth quarter results include an after-tax loss from discontinued operations of $17-million ($0.10 diluted earnings per share), a pre-tax stock-based compensation expense of $49-million ($0.21 diluted earnings per share)(1), a $0.09 reduction in diluted earnings per share related to new Canadian tax legislation on stock-based compensation payments and pre-tax gains of $4-million ($0.02 diluted earnings per share)(1)on natural gas and other commodity hedge positions. Net earnings from continuing operations calculated on the same basis as our guidance would have been $219-million ($1.38 diluted earnings per share) for the fourth quarter of 2010, relative to our guidance range for the quarter of $1.00 to $1.30 diluted earnings per share.

"Agrium's record results in the fourth quarter of 2010 are an illustration of Agrium's earnings power across the value chain as we continue to take advantage of the strength in global agricultural fundamentals," said Mike Wilson, Agrium President and CEO. "Global crop prices and margins are expected to remain well above historic levels in 2011 as a result of very low global grain stocks, providing continued support for the entire crop input market. North American nutrient inventories are tight and are expected to remain so as we move into the spring season," continued Mike Wilson.

"In December of 2010, we completed the acquisition of AWB Limited and subsequently announced that we had entered into a definitive agreement to sell a majority of the AWB Commodity Management business to Cargill. We anticipate this transaction will close in the next few months, subject to satisfying the necessary closing conditions, including regulatory approvals. We are excited to be in Australia's agricultural industry and are actively integrating AWB's Landmark business into our retail operations. The serious flooding in sections of eastern Australia has caused extensive short-term damage to individual producers in certain regions, although it has not yet had any significant direct impact on our retail branches. While the flooding and resulting lower quality wheat crop will likely have some short-term impact on the crop input sector in Australia, there are likely to be longer term benefits from increased moisture for crops, pasture and irrigation after the drought conditions experienced over the past several years," added Mr. Wilson.

(1) Fourth quarter effective tax rate of 33 percent used for adjusted diluted earnings per share calculations.

2010 Fourth Quarter Operating Results

NET EARNINGS

Agrium's fourth quarter consolidated net earnings were $158-million, or $1.00 diluted earnings per share, compared to net earnings of $30-million, or $0.19 diluted earnings per share, for the same quarter of 2009.

Financial Overview



Three months ended
December 31,
----------------------------------------------------------------------------
(Millions of U.S. dollars, except per share
amounts and effective tax rate) 2010 2009 Change
----------------------------------------------------------------------------
Net sales 2,346 1,442 904
----------------------------------------------------------------------------
Gross profit 727 383 344
----------------------------------------------------------------------------
Expenses 439 353 86
----------------------------------------------------------------------------
Net earnings from continuing operations before
interest expense and income taxes ("EBIT")(1) 289 31 258
----------------------------------------------------------------------------
Net earnings from continuing operations(2) 175 30 145
----------------------------------------------------------------------------
Net earnings 158 30 128
----------------------------------------------------------------------------
Earnings per share from continuing operations -
diluted 1.10 0.19 0.91
----------------------------------------------------------------------------
Earnings per share - diluted 1.00 0.19 0.81
----------------------------------------------------------------------------
Effective tax rate 33% N/A(3) N/A(3)
----------------------------------------------------------------------------
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(1) A reconciliation of EBIT to net earnings is provided in the section
"Non-GAAP Measures".
(2) See "Discontinued Operations" below for a discussion of our discontinued
operations.
(3) Effective tax rate of (625)% in the fourth quarter of 2009 is not
comparable due to the loss in the fourth quarter of 2009.


Our consolidated gross profit for the fourth quarter of 2010 increased by $344-million versus the fourth quarter of 2009 primarily due to higher gross profit across all of our major products. Expenses were $86-million higher than the fourth quarter of last year, due mainly to higher Retail selling and general and administrative expenses. Our consolidated EBIT increased by $258-million for this quarter.

Below is a summary of our other expenses (income) for the fourth quarter of 2010 and 2009:



Three months ended
December 31,
----------------------------------------------------------------------------
(Millions of U.S. dollars) 2010 2009
----------------------------------------------------------------------------
Stock-based compensation 49 34
----------------------------------------------------------------------------
Realized loss on derivative financial instruments 5 18
----------------------------------------------------------------------------
Unrealized loss on derivative financial instruments 26 17
----------------------------------------------------------------------------
Environmental remediation and accretion of asset
retirement obligations 6 3
----------------------------------------------------------------------------
Interest income (14) (11)
----------------------------------------------------------------------------
Foreign exchange gain (45) -
----------------------------------------------------------------------------
Bad debt expense 2 8
----------------------------------------------------------------------------
Other 7 (13)
----------------------------------------------------------------------------
36 56
----------------------------------------------------------------------------
----------------------------------------------------------------------------


The effective tax rate was 33 percent for the fourth quarter of 2010 compared to a tax recovery for the same period last year. This change is primarily due to the reversal of the cumulative effect of new Canadian tax legislation on stock-based compensation, a comparatively greater proportion of income earned in higher taxed jurisdictions in 2010 and a loss incurred in the U.S. in 2009. The effective tax rate was 27 percent for 2010 compared to 22 percent for 2009 because of the comparatively greater proportion of income earned in higher taxed jurisdictions in 2010.

BUSINESS SEGMENT PERFORMANCE

Retail

Retail's 2010 fourth quarter net sales were $1.3-billion, $587-million higher than the fourth quarter of 2009. Gross profit was $351-million in the fourth quarter of 2010, an 86 percent increase from the $189-million earned last year, while EBIT increased to $47-million this quarter, substantially higher than the $57-million loss reported in the fourth quarter of 2009. These earnings represent the highest fourth quarter results ever achieved by Retail. These strong results were supported by the early harvest, the favourable weather during the application season, high crop prices and the need for growers to catch up on nutrients application rates. The reported EBIT included a $7-million loss for Landmark, the Australian retail business unit which was acquired upon our acquisition of AWB Limited ("AWB"), for the approximate one month period they were part of Agrium. December is not normally a high sales period for Landmark and a portion of the loss is attributable to one-time integration costs.

Crop nutrient net sales were $827-million this quarter compared to $431-million in the same quarter last year. The increase was due to a combination of higher nutrient sales prices and volumes. Crop nutrient volumes were approximately 60 percent higher than the same period last year. Gross profit for crop nutrients was $140-million this quarter compared to the $46-million achieved in the fourth quarter of 2009. Crop nutrient margins averaged 17 percent in the fourth quarter of 2010, compared to the compressed margins of 11 percent experienced in the fourth quarter of 2009. The early harvest and favourable weather conditions allowed for above average applications in comparison to the prior year, particularly of potash and phosphate products. In South America, the dry weather in Argentina had little impact on our nutrient sales volumes as the drought started after planting had been completed.

Crop protection net sales were $291-million in the fourth quarter of 2010, a 24 percent increase from the $234-million in sales for the same period last year. This increase is a result of net sales from newly acquired Australian and South American retail centres and increased grower and dealer demand in North America. Gross profit this quarter was $118-million, a $20-million increase over the same period last year. Crop protection product margins as a percentage of net sales were 41 percent for the fourth quarter of 2010, similar to the fourth quarter of 2009.

Seed net sales were $54-million this quarter, well over three times last year's fourth quarter net sales of $16-million. Gross profit was $26-million in the fourth quarter of 2010, compared to $15-million for the same period last year, due to stronger grower demand for seed supported by robust crop prices. Gross margin as a percentage of net sales was 48 percent this quarter, which is a more normalized percentage for the fourth quarter compared to the 94 percent in the fourth quarter of 2009 due to the timing of seed rebate recognition versus the prior year. On an annual basis, 2010 margins were slightly below 2009 at 20 percent.

Application services and other net sales were $153-million this quarter, $96-million higher than the fourth quarter of 2009. Gross profit was $67-million in the fourth quarter of 2010, compared to $30-million for the same period last year. The increase in sales and gross profit was due to a combination of a much stronger application season in North America this fall and the addition of the Australian Landmark retail operations. The Landmark business has a significant merchandise business which includes livestock related items such as fencing, feed supplements, animal health products and other items. Landmark also has a significant services offering that include sales commissions for wool, livestock, insurance and real estate. Gross profit for Landmark merchandise and services in the fourth quarter was $22-million.

Retail selling expenses for the fourth quarter of 2010 were $264-million, including $21-million for the inclusion of one month's selling expenses related to Landmark. This compares to $211-million in selling expenses for the same period in 2009. The increase in the current year, excluding Landmark, is due to higher incentive compensation related to improved profitability, current year acquisitions in North and South America and higher fuel costs. However, selling expenses as a percentage of net sales improved to 20 percent in the fourth quarter of 2010 compared with 29 percent for the same period last year.

The integration of the Landmark retail business is well underway, with the goal to realize targeted synergies of AUD$17-million in 2011 and annual synergies of AUD$40-million or more in 2012.(1) The Landmark brand recognition is strong in Australia, and employees continue to focus on providing exceptional service and products to the Australian growers. The eastern region of Queensland has experienced some of the worst flooding in history over the past few months. The rains have lowered the quality of the Australian wheat crop and impacted spring seeded crops, including cotton and sugar cane in certain regions. The majority of Landmark's locations and growers are situated outside the areas which have been heavily impacted by the flooding in Queensland and New South Wales.

Wholesale

Wholesale reported $1.1-billion in net sales this quarter, 54 percent higher than the same period last year and the highest fourth quarter net sales in our history. Gross profit was $341-million in the fourth quarter of 2010, a $161-million increase over the same period last year. Wholesale also reported a record fourth quarter EBIT of $306-million in 2010, substantially higher than the $140-million earned in the fourth quarter of 2009. These strong results were due to a combination of higher nutrient sales volumes, increased sales prices and lower potash production costs.

Nitrogen gross profit was $160-million this quarter, $65-million higher than the same quarter last year. The increase was a result of stronger nitrogen demand when compared to the same period last year and higher benchmark and realized sales prices. Nitrogen cost of product sold was $215 per tonne, consistent with the fourth quarter of 2009. Lower natural gas costs in the current quarter were partly offset by additional costs at the Carseland facility due to a planned turnaround. Agrium's average nitrogen margin was $163 per tonne this quarter, compared with $102 per tonne in the fourth quarter of last year and $84 per tonne in the third quarter of 2010.

The U.S. benchmark (NYMEX) natural gas price for the fourth quarter of 2010 was $3.81/MMBtu, versus $4.27/MMBtu in the same quarter last year and $4.41/MMBtu in the third quarter of 2010. The AECO (Alberta) basis differential was a $0.28/MMBtu discount to NYMEX in the fourth quarter of 2010, which was similar to the basis in the fourth quarter of 2009. Agrium's overall gas cost this quarter was $3.97/MMBtu ($3.70/MMBtu excluding the impact of realized natural gas derivatives) compared to $4.82/MMBtu in the fourth quarter of 2009 ($4.15/MMBtu excluding the impact of realized natural gas derivatives). Hedging gains and losses on gas derivatives are reported below gross profit in other expenses and therefore not included in cost of product sold.

(1) See disclosure in the section "Outlook, Key Risks and Uncertainties" in this press release.

Potash gross profit was $96-million in the fourth quarter of 2010 versus $74-million in the fourth quarter of 2009. Sales volumes were up 18 percent or 65,000 tonnes over the same period last year. The average sales price was $360 per tonne this quarter, compared to $382 per tonne for the fourth quarter of 2009. Domestic demand and price levels for potash were strong in the second half of 2010. Cost of product sold was $132 per tonne this quarter, $40 per tonne lower than the same period last year and $43 per tonne lower than the third quarter of 2010. The year over year reduction in costs was a result of the facility operating at near capacity this quarter, allowing for fixed costs to be allocated over higher sales volumes. The reduction in costs compared to the third quarter of 2010 was mainly due to incremental period costs and decreased production in the third quarter of 2010 as a result of the annual turnaround. Gross margin was $228 per tonne this quarter, compared with $210 per tonne in the fourth quarter of 2009 and $152 per tonne in the third quarter of 2010.

Phosphate gross profit was $54-million, compared to $1-million in the same quarter last year. The significant improvement was due to higher realized sales prices given the tight phosphate market in the second half of 2010. Our realized phosphate price was $624 per tonne this quarter, compared to $392 per tonne for the same quarter last year. Phosphate cost of product sold was $406 per tonne, or $18 per tonne higher than the fourth quarter of 2009. The increase in cost of product sold was due to a combination of higher cost of sulphur, phosphate rock, and the impact of the higher Canadian dollar at our Canadian phosphate operation. Gross margin was $218 per tonne this quarter, a $214 per tonne increase over the fourth quarter of 2009 and a $139 per tonne increase over the third quarter of 2010.

Gross profit for the Purchase for Resale business in the fourth quarter of 2010 was $23-million, a significant increase over the same period last year. The improvement was due to a considerable increase in both sales volumes and margins in our European and North American markets.

Wholesale expenses were $5-million lower in the fourth quarter of 2010 than the same period last year, due primarily to a $39-million favourable variance related to natural gas and other derivatives which was offset by an increase of potash profit and capital taxes of $20-million. The fourth quarter of 2010 included realized losses on natural gas and other derivatives of $8-million offset by mark-to-market gains of $12-million. The same quarter in 2009 included realized losses on natural gas and other derivatives of $18-million and mark-to-market losses of $17-million. Agrium reported equity earnings of $6-million for its interest in the MOPCO Egyptian nitrogen facility in the fourth quarter of 2010 and $17-million in equity earnings for the year.

Advanced Technologies

Advanced Technologies' fourth quarter 2010 net sales were $97-million compared to $95-million in the fourth quarter of 2009. Gross profit was $24-million for the quarter, compared with $16-million for the same period last year. The increase in net sales and gross profit for the quarter was due to higher prices and sales volumes for our Environmentally Smart Nitrogen ("ESN") and turf and ornamental products. The Direct Solutions business (includes the turf and ornamental operations transferred from Retail in 2009) reported gross profit of $5-million in the current quarter which was $1-million lower than the same period in 2009.

ESN sales volumes were 21 percent higher, or an increase of about 10,000 tonnes, in the fourth quarter of 2010 compared to the same period last year. The increase was a result of higher demand and additional available production and associated sales volumes from our new facility at New Madrid, Missouri.

EBITDA for the current quarter was $7-million, an increase of $7-million versus the comparable period in 2009. The growth in EBITDA was due primarily to the increase in gross profit and the recording of non-recurring relocation costs and inventory write-downs in the same period in 2009.

Other

EBIT for our Other non-operating business unit for the fourth quarter of 2010 was a loss of $66-million, an increase in loss of $20-million compared to a loss of $46-million for the fourth quarter of 2009. The increase in loss was driven by:



-- a net loss of $36-million primarily from foreign exchange derivatives
entered into in anticipation of the AWB acquisition and sale of the
Commodity Management business to Cargill;
-- a $23-million increase in general and administrative expense largely due
to one-time closing costs relating to the AWB acquisition; and
-- a $13-million increase in stock-based compensation expense from a larger
increase in share price during the fourth quarter of 2010 versus the
same period last year.


The increase in loss was partially offset by a $46-million foreign exchange gain from the remeasurement of intercompany loans.

DISCONTINUED OPERATIONS

On December 3, 2010, we acquired AWB's Commodity Management business and AWB Harvest Finance operations as a part of the AWB acquisition. On December 15, 2010, Agrium announced that Cargill, Incorporated agreed to acquire a majority of these commodity management businesses. As a result, these businesses are classified as discontinued operations. For discussion on AWB, see section "Business Acquisitions".

Net loss from discontinued operations for the fourth quarter of 2010 was $17-million versus nil in the same period of 2009.

LIQUIDITY AND CAPITAL RESOURCES

Below is a summary of our cash provided by or used in operating, investing, and financing activities as reflected in the Consolidated Statements of Cash Flow:



Three months ended December 31,
----------------------------------------------------------------------------
(Millions of U.S. dollars) 2010 2009 Change
----------------------------------------------------------------------------
Cash provided by operating activities 563 905 (342)
----------------------------------------------------------------------------
Cash used in investing activities (1,374) (172) (1,202)
----------------------------------------------------------------------------
Cash provided by (used in) financing
activities 400 (24) 424
----------------------------------------------------------------------------
Effect of exchange rate changes on cash 9 (1) 10
----------------------------------------------------------------------------
(Decrease) increase in cash and cash
equivalents from continuing operations (402) 708 (1,110)
----------------------------------------------------------------------------
Cash and cash equivalents provided by
discontinued operations 45 - 45
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The sources and uses of cash for the three months ended December 31, 2010
are summarized below:

----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities - Drivers behind the $342-million
decrease in source of cash
----------------------------------------------------------------------------
Source of cash - $145-million resulting from increase in net earnings
from continuing operations adjusted for changes in non-
cash items, primarily associated with a $106-million
increase from future income taxes.

Use of cash - $620-million increase in non-cash working capital.
The increase in non-cash working capital was primarily
driven by higher inventory and prepaid expenses and
deposits in the fourth quarter of 2010 compared to the
fourth quarter of 2009. These were partially offset by
higher accounts payable in the fourth quarter of 2010
versus the fourth quarter of 2009.
----------------------------------------------------------------------------
Cash used in investing activities - Drivers behind the $1.2-billion increase
in use of cash
----------------------------------------------------------------------------
Use of cash - $1.2-billion used for the acquisition of AWB in the
fourth quarter of 2010. For discussion on AWB, see
section "Business Acquisitions".
----------------------------------------------------------------------------
Cash provided by financing activities - Drivers behind the $424-million
increase in source of cash
----------------------------------------------------------------------------
Source of cash - $500-million aggregate principal amount of debentures
were issued in the fourth quarter of 2010, net proceeds
from which were used to pay down credit facilities
drawn in connection with the AWB acquisition and will
be used to repay a $125-million aggregate principal
amount of debentures due February 15, 2011.
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----------------------------------------------------------------------------


Credit Rating

Following Agrium's announcement to acquire AWB, DBRS placed Agrium under review on August 16, 2010. On November 23, 2010, DBRS confirmed the Senior Debt rating of Agrium with a Stable trend following the approval of a plan for Agrium to acquire AWB for approximately $1.2-billion by AWB shareholders and Australian courts. On December 15, 2010, DBRS commented that the successful sale of the Commodity Management businesses of AWB to Cargill is not expected to have an impact on the rating of Agrium's Senior Debt.

Following Agrium's announcement on March 11, 2010 that it will no longer pursue an acquisition of CF, Moody's concluded its review and removed Agrium from Under Review for negative watch to Stable outlook on March 18, 2010.

On December 15, 2010, Standard & Poor's affirmed its credit rating and Stable outlook on Agrium.

OUTSTANDING SHARE DATA

The number of outstanding shares as at January 31, 2011 was approximately 158 million. As at January 31, 2011, the number of stock options (issuable assuming full conversion, where each option granted can be exercised for one common share) outstanding were approximately nil.

SELECTED QUARTERLY INFORMATION

(Unaudited, in millions of U.S. dollars, except per share information)



2010 2009 2008
---------------------------------------------------------------
Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4

Net sales 2,346 2,009 4,367 1,798 1,442 1,844 4,090 1,753 1,941
Gross profit 727 500 1,063 361 383 397 890 273 522
Net earnings
from
continuing
operations 175 57 1,063 361 383 397 890 273 522
Net earnings
(loss) 158 57 506 (7) 30 26 370 (60) 124
Earnings
(loss) per
share from
continuing
operations
-basic 1.10 0.37 3.21 (0.04) 0.19 0.16 2.36 (0.38) 0.79
-diluted 1.10 0.37 3.20 (0.04) 0.19 0.16 2.35 (0.38) 0.79
Earnings
(loss) per
share
-basic 1.00 0.37 3.21 (0.04) 0.19 0.16 2.36 (0.38) 0.79
-diluted 1.00 0.37 3.20 (0.04) 0.19 0.16 2.35 (0.38) 0.79
---------------------------------------------------------------


The agricultural products business is seasonal in nature. Consequently, sales and gross profit comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter. Crop input sales are primarily concentrated in the spring and fall crop input application seasons, which are in the second quarter and fourth quarter, respectively. Crop nutrient inventories are normally accumulated leading up to the application season. Cash collections generally occur after the application season is complete in the Americas and Australia, except for international potash sales. Our recent acquisition of AWB, which has a majority of its earnings from the second and third quarters of the calendar year, may have some impact on comparability.

BUSINESS ACQUISITIONS

On December 3, 2010, Agrium completed its acquisition of 100 percent of the outstanding shares of AWB at an aggregate purchase price of approximately AUD$1.2-billion plus assumption of AUD$540-million of debt. The AWB acquisition provides Agrium with the opportunity to further enhance product and service offerings to Australian and New Zealand customers. AWB's Landmark business is a leading agricultural retailer in Australia, with over 200 company-owned retail locations, and 140 additional retail franchise and wholesale customer locations in Australia. Agrium announced that a definitive agreement had been reached with Cargill on December 15, 2010, pursuant to which Cargill has agreed, subject to certain conditions, to acquire substantially all of the Commodity Management businesses of AWB. The purchase price to be paid by Cargill for the acquired businesses will be the net asset value of the acquired businesses as at the completion date of the transaction plus a premium. The purchase consideration will be payable in cash and by the assumption by Cargill of AWB's consolidated indebtedness related to the acquired businesses. Subject to the satisfaction of the required closing conditions, including regulatory approvals, we anticipate that the sale to Cargill will be completed in the first half of 2011.

On March 11, 2010, Agrium announced that it would no longer pursue an acquisition of CF Industries, Inc. ("CF") and allowed its offer for CF to expire on March 22, 2010. Acquisition costs of $45-million, previously recorded in prepaid expenses and deposits, were expensed on expiry of the offer. In March 2010, Agrium sold its investment in CF, consisting of 1.2 million common shares, and recorded a pre-tax gain in other expenses of $52-million. Unrealized gains on the shares had previously been recorded in other comprehensive income. Following termination of the CF offer, the conditional sale of 50 percent of the Carseland nitrogen facility to Terra Industries Inc. was also terminated.

NON-GAAP MEASURES

In the discussion of our performance for the quarter, in addition to the primary measures of earnings and earnings per share, we make reference to EBIT (net earnings from continuing operations before interest expense and income taxes) and EBITDA (net earnings from continuing operations before interest expense, income taxes, depreciation, amortization and asset impairment). We consider EBIT and EBITDA to be useful measures of performance because income tax jurisdictions and business segments are not synonymous and we believe that allocation of income tax charges distorts the comparability of historical performance for the different business segments. Similarly, financing and related interest charges cannot be allocated to all business units on a basis that is meaningful for comparison with other companies.

EBIT and EBITDA are not recognized measures under GAAP, and our methods of calculation may not be comparable to other companies. Similarly, EBITDA should not be used as an alternative to cash provided by (used in) operating activities as determined in accordance with GAAP.

The following table is a reconciliation of EBITDA and EBIT to net earnings as calculated in accordance with GAAP:



Three Months Ended December 31
(millions of U.S. dollars) 2010
----------------------------------------------------------------------------
Advanced
Retail Wholesale Technologies Other Consolidated
----------------------------------------------------------------------------
EBITDA 80 345 7 (65) 367
Depreciation
and amortization 33 39 5 1 78
----------------------------------------------------------------------------
EBIT 47 306 2 (66) 289
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Interest (30)
expense
Income taxes (84)
----------------------------------------------------------------------------
Net earnings from
continuing 175
operations
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Three Months Ended December 31
(millions of U.S. dollars) 2009
----------------------------------------------------------------------------
Advanced
Retail Wholesale Technologies Other Consolidated
----------------------------------------------------------------------------
EBITDA (30) 169 - (44) 95
Depreciation
and amortization 27 29 6 2 64
----------------------------------------------------------------------------
EBIT (57) 140 (6) (46) 31
----------------------------------------------------------------------------
Interest (26)
expense
Income taxes 25
----------------------------------------------------------------------------
Net earnings from
continuing 30
operations
----------------------------------------------------------------------------
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OUTLOOK, KEY RISKS AND UNCERTAINTIES

Many global crops ended 2010 trading at historically high levels. The United States Department of Agriculture (USDA) projects that U.S. average realized farm price of corn, soybeans and cotton will be at record levels in 2011. The U.S. stocks-to-use ratio for soybeans and cotton are projected to be the lowest on recent record, while the stocks to use ratio of corn is projected to be the second lowest on record. The combination of a tight supply and demand balance and historically high prices for most crops is expected to result in increased seeded acreage and significant competition for land between the crops. The USDA recently stated that as many as 10 million more acres of land could be planted in the U.S. alone this spring. This is positive for seed, crop protection and crop nutrient demand. North American nutrient demand in the spring of 2011, particularly for phosphate and potash, may be impacted by the strong application levels this past fall. However, the extent this may occur will ultimately depend on the size of total crop acreage in North America this spring, the degree to which acreage shifts to crops with higher nutrient requirements such as corn and cotton over soybeans, as well as total application rates for the 2010/11 fertilizer year.

North American urea inventories were below the five-year average throughout most of the second half of 2010, but increased in December to two percent above the five-year average. However, total nitrogen inventories in North America in December remained below the five-year average. Chinese urea export supplies reached a record seven million tonnes in 2010. However, the Chinese government recently announced the export tariff on urea would be at the prohibitive 110 percent, two months earlier than normal which should reduce urea export availability in 2011.

The recent political unrest in Egypt and some other countries in the region have contributed to uncertainty to global markets, including nutrient products. The MOPCO nitrogen facility in which we have a 26 percent equity interest, is located at the port city of Damietta and has continued to operate and export at normal levels during the recent period of unrest, although this is not true for all Egyptian nitrogen facilities. Progress also continues on the tripling of the output at the Egyptian nitrogen facility. No capital is required from Agrium for this expansion.

Tight supply and demand fundamentals supported the phosphate market in the fourth quarter of 2010. December TFI data showed that U.S. DAP/MAP inventories increased 37 percent from record low November levels but remained 32 percent below the five-year average levels and slightly below December 2009 levels. Looking ahead to the first half of 2011, demand within North America is expected to be supported by strong crop prices. India will be an important market to watch over the next couple of months. India imported record DAP volumes in 2010 and analysts expect strong demand to continue in 2011, but the level of the Nutrient Based Subsidy (NBS) remains uncertain for 2011.

Strong global and North American potash demand has contributed to a significantly improved outlook relative to a year ago. North American potash inventories at the end of December 2010 were 35% below December 2009 levels and 14% below the five-year average, despite near-record monthly North American production in December 2010. Global and North American benchmark potash prices increased in the fourth quarter of 2010, driven by strong demand and tightening supplies. Looking ahead to 2011, the latest Chinese supply agreement with key exporters provides base demand and adds certainty to the market. Indian import demand for potash is expected to remain strong in 2011, but the level of the NBS and agreements with suppliers remain sources of uncertainty at this time.

Flooding in eastern Australia is some of the worst in history for this region. The economic impact of this is still unknown, but the excessive moisture has lowered the quality of the wheat crop and impacted spring seeded crops including cotton, sugar cane and vegetables in certain regions. The flooding has impacted logistics in some regions which make it more difficult to get products to market and ports. Cattle, sheep, and wool auctions are likely to see cancellations in the first months of 2011, and general purchases of agricultural merchandise may be impacted in some regions. These issues will have some impact on 2011 results for Landmark, but the first quarter of 2011 tends to be Landmark's second weakest quarter from a gross margin perspective. While there has been some significant short-term damage to individual producers in several agricultural regions, in the medium to long term the recent heavy rainfall and associated flooding should provide some benefit to agriculture, through an increase in soil moisture levels, improved pasture growth and increased water availability for irrigated agricultural production.

As part of our ongoing planned maintenance program several of our facilities have planned turnarounds in 2011, the most significant of which will occur at our Redwater Nitrogen facility commencing in June of 2011. Agrium's ammonia sales volumes to agricultural and industrial markets vary significantly by quarter. In the first quarter the industrial market historically accounts for in excess of 60 percent of our ammonia sales volumes. The majority of our industrial ammonia sales contracts have a significant portion of their pricing indexed to natural gas, in contrast with agricultural pricing which is more closely tied to the spot market at the time of the sale with the customer.

Forward-Looking Statements

Certain statements and other information included in this press release constitute "forward looking information" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this press release, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to, statements as to management's expectations with respect to: future crop and crop input volumes, demand, margins, prices and sales; the announced divestiture of substantially all of AWB's Commodity Management business; business and financial prospects; and other plans, strategies, objectives and expectations, including with respect to future operations of Agrium and AWB. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although Agrium believes that these assumptions are reasonable, this list is not exhaustive of the factors that may affect any of the forward-looking statements and the reader should not place an undue reliance on these assumptions and such forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include the following: Agrium's ability to successfully integrate and realize the anticipated benefits of its acquisitions, including the acquisition of AWB; Agrium's ability to operate AWB's business profitably, including in respect of its ability to operate AWB's retail business and achieve margins closer to those Agrium currently obtains in its existing retail businesses; Agrium's success in integrating its business systems and supply chain management processes following the acquisition of AWB and Agrium's ability to complete the divestiture of substantially all of AWB's Commodity Management business on the planned timeline.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements, include, but are not limited to: general economic, market and business conditions, weather conditions including impacts from regional flooding, including the impact of the current floods being experienced in Australia, and/or drought conditions; crop price; the supply and demand and price levels for our major products; and governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, changes in environmental, tax and the interpretation thereof and other laws or regulations, and political risks, including civil unrest, actions by armed groups or conflict. Additionally, there are risks associated with Agrium's recent acquisition of AWB and the announced divesture of substantial parts of AWB's Commodity Management business, including: timing and costs of the associated integration of the AWB business, the size and timing of expected synergies could be less favourable than anticipated; the divestiture of substantial parts of AWB's Commodity Management business may be unsuccessful, more time consuming or costly than initially realized and the proceeds of such divestiture may be less than expected; disruption from the acquisition making it more difficult to maintain relationships with customers, employees and suppliers; AWB is subject to dispute and litigation risk (including as a result of being named in litigation commenced by the Iraqi Government relating to the United Nations Oil-For-Food Programme), as well as counterparty and sovereign risk; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this press release as a result of new information or future events, except as may be required under applicable U.S. federal securities laws or applicable Canadian securities legislation.

OTHER

Agrium Inc. is a major Retail supplier of agricultural products and services in North America, South America and Australia and a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through our Advanced Technologies business unit. Agrium's strategy is to grow across the value chain through acquisition, incremental expansion of its existing operations and through the development, commercialization and marketing of new products and international opportunities. Our strategy places particular emphasis on growth opportunities that both increase and stabilize our earnings profile in the continuing transformation of Agrium.

A WEBSITE SIMULCAST of the 2010 4th Quarter Conference Call will be available in a listen-only mode beginning Wednesday, February 9th at 9:30 a.m. MT (11:30 a.m. ET). Please visit the following website: www.agrium.com



AGRIUM INC.
Consolidated Statements of Operations
(Millions of U.S. dollars, except per share amounts)
(Unaudited)

Three months ended Twelve months ended
December 31, December 31,
----------------------------------------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------

Sales 2,398 1,501 10,743 9,328
Direct freight 52 59 223 199
----------------------------------------------------------------------------
Net sales 2,346 1,442 10,520 9,129
Cost of product sold 1,619 1,059 7,869 7,186
----------------------------------------------------------------------------
Gross profit 727 383 2,651 1,943
Expenses
Selling 274 227 1,038 918
General and administrative 82 50 236 202
Depreciation and amortization 37 32 129 124
Potash profit and capital tax 16 (4) 27 4
Earnings from equity investees (6) (8) (25) (27)
Other expenses 36 56 143 142
----------------------------------------------------------------------------
Earnings before interest, income
taxes and non-controlling
interests 288 30 1,103 580
Interest on long-term debt 23 22 88 91
Other interest 7 4 19 19
----------------------------------------------------------------------------
Earnings before income taxes and
non-controlling interests 258 4 996 470
Income taxes 84 (25) 265 105
Non-controlling interests (1) (1) - (1)
----------------------------------------------------------------------------
Net earnings from continuing
operations 175 30 731 366
Net loss from discontinued
operations (17) - (17) -
----------------------------------------------------------------------------
Net earnings 158 30 714 366
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Earnings per share from
continuing operations
----------------------------------------------------------------------------
Basic 1.10 0.19 4.64 2.33
Diluted 1.10 0.19 4.63 2.33
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Earnings per share
----------------------------------------------------------------------------
Basic 1.00 0.19 4.53 2.33
Diluted 1.00 0.19 4.52 2.33
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Weighted average number of shares
outstanding (millions)
----------------------------------------------------------------------------
Basic 158 157 157 157
Diluted 158 158 158 157
----------------------------------------------------------------------------
----------------------------------------------------------------------------



AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)

Three months ended Twelve months ended
December 31, December 31,
----------------------------------------------------------------------------
2010 2009 2010 2009
----------------------------------------------------------------------------
Operating
Net earnings from continuing
operations 175 30 731 366
Items not affecting cash
Depreciation and amortization 78 64 334 242
Earnings from equity investees (6) (8) (25) (27)
Stock-based compensation 49 34 110 73
Unrealized loss (gain) on derivative
financial instruments 26 17 42 (39)
Acquisition costs - - 45 -
Gain on disposal of marketable
securities - - (52) -
Unrealized foreign exchange (gain)
loss (11) (5) (12) 62
Future income taxes 17 (89) 14 (309)
Non-controlling interests (1) (1) - (1)
Other 8 15 23 82
Dividends from equity investees - - 14 -
Net changes in non-cash working
capital 228 848 (649) 950
----------------------------------------------------------------------------
Cash provided by operating activities 563 905 575 1,399
----------------------------------------------------------------------------
Investing
Acquisitions, net of cash acquired (1,246) - (1,246) (15)
Capital expenditures (135) (131) (441) (313)
Proceeds from disposal of investments - - 25 -
Purchase of marketable securities - - - (65)
Proceeds from disposal of marketable
securities - - 117 -
Other 7 (41) (1) (120)
----------------------------------------------------------------------------
Cash used in investing activities (1,374) (172) (1,546) (513)
----------------------------------------------------------------------------
Financing
Bank indebtedness (100) (61) (8) (381)
Long-term debt issued 517 32 565 78
Transaction costs on long-term debt (13) (1) (13) (1)
Repayment of long-term debt (7) - (17) (1)
Dividends paid - - (17) (17)
Shares issued, net of issuance costs 3 6 8 7
----------------------------------------------------------------------------
Cash provided by (used in) financing
activities 400 (24) 518 (315)
----------------------------------------------------------------------------
Effect of exchange rate changes on
cash and cash equivalents 9 (1) 15 5
----------------------------------------------------------------------------
(Decrease) increase in cash and cash
equivalents from continuing operations (402) 708 (438) 576
Cash and cash equivalents provided by
discontinued operations 45 - 45 -
Cash and cash equivalents - beginning
of period 897 225 933 374
Deconsolidation of Egypt subsidiary - - - (17)
----------------------------------------------------------------------------
Cash and cash equivalents - end of
period 540 933 540 933
----------------------------------------------------------------------------
----------------------------------------------------------------------------



AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
(Unaudited)

As at
December 31,
----------------------------------------------------------------------------
2010 2009
----------------------------------------------------------------------------

ASSETS
Current assets
Cash and cash equivalents 540 933
Accounts receivable 1,781 1,324
Inventories 2,502 2,137
Prepaid expenses and deposits 848 612
Marketable securities 3 114
Assets of discontinued operations 1,320 -
----------------------------------------------------------------------------
6,994 5,120
Property, plant and equipment 2,099 1,782
Intangibles 619 617
Goodwill 2,463 1,801
Investment in equity investees 389 370
Other assets 47 95
Future income tax assets 14 -
Assets of discontinued operations 92 -
----------------------------------------------------------------------------
12,717 9,785
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness 297 106
Accounts payable 2,843 2,475
Current portion of long-term debt 125 -
Liabilities of discontinued operations 1,020 -
----------------------------------------------------------------------------
4,285 2,581
Long-term debt 2,118 1,699
Other liabilities 408 381
Future income tax liabilities 549 521
Liabilities of discontinued operations 2 -
Non-controlling interests 8 11
----------------------------------------------------------------------------
7,370 5,193
Shareholders' equity 5,347 4,592
----------------------------------------------------------------------------
12,717 9,785
----------------------------------------------------------------------------
----------------------------------------------------------------------------



AGRIUM INC.
Consolidated Statements of Comprehensive Income and Shareholders' Equity
(Millions of U.S. dollars, except share data)
(Unaudited)


Millions Accumulated
of other Total
common Share Contributed Retained comprehensive shareholders'
shares capital surplus earnings income equity
----------------------------------------------------------------------------
December 31,
2008 157 1,961 8 2,313 (172) 4,110
----------------------------------------------------------------------------
Net earnings 366 366
Cash flow
hedges (a) (4) (4)
Available for
sale
financial
instruments (b) 29 29
Foreign
currency
translation 100 100
----------------------------------------------------------------------------
Comprehensive
income 491
----------------------------------------------------------------------------
Dividends (17) (17)
Stock options
exercised 8 8
----------------------------------------------------------------------------
December 31,
2009 157 1,969 8 2,662 (47) 4,592
----------------------------------------------------------------------------
Net earnings 714 714
Cash flow
hedges (c) (2) (2)
Available for
sale
financial
instruments (d) (29) (29)
Foreign
currency
translation 80 80
----------------------------------------------------------------------------
Comprehensive
income 763
----------------------------------------------------------------------------
Dividends (17) (17)
Stock options
exercised 1 7 2 9
----------------------------------------------------------------------------
December 31,
2010 158 1,976 10 3,359 2 5,347
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Net of tax of $2-million.
(b) Net of tax of $19-million.
(c) Net of tax of $1-million.
(d) Net of tax of $19-million.



AGRIUM INC.
Results by Segment
(Unaudited - millions of U.S. dollars)

Schedule 1a
Three months ended December 31,
----------------------------------------------------------------------------
2010
----------------------------------------------------------------------------
Advanced
Retail Wholesale Technologies Other Total
----------------------------------------------------------------------------
Net sales - external 1,309 955 82 - 2,346
- inter-
segment 16 146 15 (177) -
----------------------------------------------------------------------------
Total net sales 1,325 1,101 97 (177) 2,346
Cost of product sold 974 760 73 (188) 1,619
----------------------------------------------------------------------------
Gross profit 351 341 24 11 727
----------------------------------------------------------------------------
Gross profit (%) 26 31 25 31
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Selling expenses 264 10 8 (8) 274
EBITDA(1) 80 345 7 (65) 367
EBIT(2) 47 306 2 (66) 289

Three months ended December 31,
----------------------------------------------------------------------------
2009
----------------------------------------------------------------------------
Advanced
Retail Wholesale Technologies Other Total
----------------------------------------------------------------------------

Net Sales - external 736 621 85 - 1,442
- inter-
segment 2 95 10 (107) -
----------------------------------------------------------------------------
Total net sales 738 716 95 (107) 1,442
Cost of product sold 549 536 79 (105) 1,059
----------------------------------------------------------------------------
Gross profit 189 180 16 (2) 383
----------------------------------------------------------------------------
Gross profit (%) 26 25 17 27
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Selling expenses 211 8 9 (1) 227
EBITDA(1) (30) 169 - (44) 95
EBIT(2) (57) 140 (6) (46) 31

(1) Net earnings from continuing operations before interest expense, income
taxes, depreciation and amortization.
(2) Net earnings from continuing operations before interest expense and
income taxes.



AGRIUM INC.
Results by Segment
(Unaudited - millions of U.S. dollars)

Schedule 1b
Twelve months ended December 31,
----------------------------------------------------------------------------
2010
----------------------------------------------------------------------------
Advanced
Retail Wholesale Technologies Other Total
----------------------------------------------------------------------------
Net sales - external 6,941 3,241 338 - 10,520
- inter-
segment 28 490 52 (570) -
----------------------------------------------------------------------------
Total net sales 6,969 3,731 390 (570) 10,520
Cost of product sold 5,418 2,720 305 (574) 7,869
----------------------------------------------------------------------------
Gross profit 1,551 1,011 85 4 2,651
----------------------------------------------------------------------------
Gross profit (%) 22 27 22 25
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Selling expenses 988 36 30 (16) 1,038
EBITDA(1) 525 1,058 31 (177) 1,437
EBIT(2) 410 866 12 (185) 1,103

Twelve months ended December 31,
----------------------------------------------------------------------------
2009
----------------------------------------------------------------------------
Advanced
Retail Wholesale Technologies Other Total
----------------------------------------------------------------------------
Net Sales - external 6,160 2,708 261 - 9,129
- inter-
segment 4 311 43 (358) -
----------------------------------------------------------------------------
Total net sales 6,164 3,019 304 (358) 9,129
Cost of product sold 4,982 2,377 250 (423) 7,186
----------------------------------------------------------------------------
Gross profit 1,182 642 54 65 1,943
----------------------------------------------------------------------------
Gross profit (%) 19 21 18 21
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Selling expenses 882 34 13 (11) 918
EBITDA(1) 266 607 22 (72) 823
EBIT(2) 163 495 3 (80) 581

(1) Net earnings from continuing operations before interest expense, income
taxes, depreciation and amortization.
(2) Net earnings from continuing operations before interest expense and
income taxes.



AGRIUM INC.
Product Lines
(Unaudited - millions of U.S. dollars)

Schedule 2

Three months ended December 31,
----------------------------------------------------------------------------
2010 2009
----------------------------------------------------------------------------
Cost of Cost of
product Gross product Gross
Net sales sold(1)(2) profit Net sales sold(1)(2) profit
----------------------------------------------------------------------------
Retail(3)(4)(5)
Crop nutrients 827 687 140 431 385 46
Crop protection
products 291 173 118 234 136 98
Seed 54 28 26 16 1 15
Services and other 153 86 67 57 27 30
----------------------------------------------------------------------------
1,325 974 351 738 549 189
----------------------------------------------------------------------------
Wholesale
Nitrogen 370 210 160 294 199 95
Potash 150 54 96 135 61 74
Phosphate 153 99 54 91 90 1
Product purchased for
resale 378 355 23 161 159 2
Other 50 42 8 35 27 8
----------------------------------------------------------------------------
1,101 760 341 716 536 180
----------------------------------------------------------------------------
Advanced Technologies
Turf and ornamental 68 53 15 75 64 11
Agriculture 29 20 9 20 15 5
----------------------------------------------------------------------------
97 73 24 95 79 16
----------------------------------------------------------------------------

Other inter-segment
eliminations (177) (188) 11 (107) (105) (2)
----------------------------------------------------------------------------

Total 2,346 1,619 727 1,442 1,059 383
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Twelve months ended December 31,
----------------------------------------------------------------------------
2010 2009
----------------------------------------------------------------------------
Cost of Cost of
product Gross product Gross
Net sales sold(1)(2) profit Net sales sold(1)(2) profit
----------------------------------------------------------------------------
Retail(3)(4)(5)
Crop nutrients 3,001 2,460 541 2,522 2,310 212
Crop protection
products 2,703 2,070 633 2,638 1,990 648
Seed 877 706 171 731 579 152
Services and other 388 182 206 273 103 170
----------------------------------------------------------------------------
6,969 5,418 1,551 6,164 4,982 1,182
----------------------------------------------------------------------------
Wholesale
Nitrogen 1,343 891 452 1,247 835 412
Potash 646 275 371 333 159 174
Phosphate 548 442 106 436 398 38
Product purchased
for resale 993 945 48 816 853 (37)
Other 201 167 34 187 132 55
----------------------------------------------------------------------------
3,731 2,720 1,011 3,019 2,377 642
----------------------------------------------------------------------------
Advanced Technologies
Turf and ornamental 271 215 56 222 188 34
Agriculture 119 90 29 82 62 20
----------------------------------------------------------------------------
390 305 85 304 250 54
----------------------------------------------------------------------------

Other inter-segment
eliminations (570) (574) 4 (358) (423) 65
----------------------------------------------------------------------------

Total 10,520 7,869 2,651 9,129 7,186 1,943
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(1) Wholesale includes inventory and purchase commitment write-downs.
(2) Includes depreciation and amortization.
(3) International Retail net sales were $243-million (2009 - $76-million)
and gross profit was $51-million (2009 - $11million) for the three
months ended December 31.
(4) International Retail net sales were $435-million (2009 - $196-million)
and gross profit was $85-million (2009 - $25-million) for the twelve
months ended December 31.
(5) Comparative figures have been reclassified
to conform to the current year's revised categories.



AGRIUM INC.
Selected Wholesale Volumes and Sales Prices
(Unaudited)
Schedule 3a

Three months ended December 31,
----------------------------------------------------------------------------
2010
----------------------------------------------------------------------------
Cost of
Sales Selling product
tonnes price sold Margin
(000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------

Nitrogen
Domestic
Ammonia 315 433
Urea 318 391
Other 229 261
--------------------------------------------------------
Total domestic 862 372
International 118 420
----------------------------------------------------------------------------
Total nitrogen 980 378 215 163
----------------------------------------------------------------------------

Potash
Domestic 236 412
International 182 292
----------------------------------------------------------------------------
Total potash 418 360 132 228
----------------------------------------------------------------------------

Phosphate 246 624 406 218

Product purchased for resale 944 400 375 25

Other
Ammonium sulfate 79 242 154 88
Other 82
----------------------------------------------------------------------------
Total other 161
----------------------------------------------------------------------------

Total Wholesale 2,749 401 277 124
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Three months ended December 31,
----------------------------------------------------------------------------
2009
----------------------------------------------------------------------------
Cost of
Sales Selling product
tonnes price sold Margin
(000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------

Nitrogen
Domestic
Ammonia 325 357
Urea 365 313
Other 149 220
--------------------------------------------------------
Total domestic 839 314
International 91 344
----------------------------------------------------------------------------
Total nitrogen 930 316 214 102
----------------------------------------------------------------------------

Potash
Domestic 279 388
International 74 363
----------------------------------------------------------------------------
Total potash 353 382 172 210
----------------------------------------------------------------------------

Phosphate 232 392 388 4

Product purchased for resale 598 269 266 3

Other
Ammonium sulfate 90 184 117 67
Other 56
----------------------------------------------------------------------------
Total other 146
----------------------------------------------------------------------------

Total Wholesale 2,259 317 237 80
----------------------------------------------------------------------------
----------------------------------------------------------------------------



AGRIUM INC.
Selected Wholesale Volumes and Sales Prices
(Unaudited)
Schedule 3b

Twelve months ended December 31,
----------------------------------------------------------------------------
2010
----------------------------------------------------------------------------
Cost of
Sales Selling product
tonnes price sold Margin
(000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------

Nitrogen
Domestic
Ammonia 1,125 399
Urea 1,401 355
Other 952 246
--------------------------------------------------------
Total domestic 3,478 339
International 440 371
----------------------------------------------------------------------------
Total nitrogen 3,918 343 228 115
----------------------------------------------------------------------------

Potash
Domestic 1,119 394
International 749 273
----------------------------------------------------------------------------
Total potash 1,868 346 148 198
----------------------------------------------------------------------------

Phosphate 1,041 527 425 102

Product purchased for resale 3,000 331 315 16

Other
Ammonium sulfate 347 224 148 76
Other 344
----------------------------------------------------------------------------
Total other 691
----------------------------------------------------------------------------

Total Wholesale 10,518 354 258 96
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Twelve months ended December 31,
----------------------------------------------------------------------------
2009
----------------------------------------------------------------------------
Cost of
Sales Selling product
tonnes price sold Margin
(000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------

Nitrogen
Domestic
Ammonia 1,070 408
Urea 1,445 326
Other 709 242
--------------------------------------------------------
Total domestic 3,224 335
International 542 310
----------------------------------------------------------------------------
Total nitrogen 3,766 331 222 109
----------------------------------------------------------------------------

Potash
Domestic 467 457
International 296 404
----------------------------------------------------------------------------
Total potash 763 436 208 228
----------------------------------------------------------------------------

Phosphate 1,004 434 396 38

Product purchased for resale 2,672 305 319 (14)

Other
Ammonium sulfate 360 225 126 99
Other 207
----------------------------------------------------------------------------
Total other 567
----------------------------------------------------------------------------

Total Wholesale 8,772 344 271 73
----------------------------------------------------------------------------
----------------------------------------------------------------------------



AGRIUM INC.
Selected Cost of Product Sold Information
(Unaudited - millions of U.S. dollars)
Schedule 4
Three months ended December 31,
---------------------------------------------- ---------------------------
Inventory
and
Depreciation purchase
and commitment
amortization write-down
----------------------------------------------------------------------------
2010 2009 2010 2009
---------------------------------------------- ---------------------------
Retail 2 - - -
---------------------------------------------- ---------------------------
Wholesale
Nitrogen 20 14 - -
Potash 6 3 - -
Phosphate 10 10 - -
Product
purchased
for resale - - - 2
Other 1 1 - -
---------------------------------------------- ---------------------------
37 28 - 2
---------------------------------------------- ---------------------------
Advanced
Technologies 2 4 - 2
---------------------------------------------- ---------------------------
Total 41 32 - 4
---------------------------------------------- ---------------------------
---------------------------------------------- ---------------------------


Twelve months ended December 31,
----------------------------------------------------------------------------
Inventory
and
Depreciation purchase
and commitment
amortization write-down
---------------------------------------------- ---------------------------
2010 2009 2010 2009
---------------------------------------------- ---------------------------
Retail 6 - - -
---------------------------------------------- ---------------------------
Wholesale
Nitrogen 77 55 - 2
Potash 36 16 - -
Phosphate 68 32 - 2
Product
purchased
for resale 1 - - 56
Other 5 4 - 1
---------------------------------------------- ---------------------------
187 107 - 61
---------------------------------------------- ---------------------------
Advanced
Technologies 12 11 - 2
---------------------------------------------- ---------------------------
Total 205 118 - 63
---------------------------------------------- ---------------------------
---------------------------------------------- ---------------------------


Contact Information

  • Agrium Inc.
    Richard Downey
    Senior Director, Investor Relations
    (403) 225-7357
    or
    Agrium Inc.
    Todd Coakwell
    Manager, Investor Relations
    (403) 225-7437
    www.agrium.com