Release Date: 10/29/2003
CALGARY, Alberta, Oct 29, 2003 (BUSINESS WIRE) -- All Amounts Are Stated in U.S.$
Agrium Inc. (NYSE: AGU)(TSX: AGU) and announced today that its net earnings for the third quarter ended September 30, 2003, were $25-million ($0.18 basic earnings per share). This is the highest third quarter earnings figure in more than five years, and well above the market consensus estimate of $0.09 per share. Year-to-date earnings were $88-million ($0.64 basic earnings per share), which is the highest in four years.
"These strong quarterly results are a reflection of the improvement in the global nitrogen cycle and continued growth in earnings for the retail division," said Mike Wilson, Agrium's President and CEO. "We have seen continued tight international nitrogen supply and demand fundamentals. The tight supply situation has continued despite an increase in the North American nitrogen operating rates over the past four months."
For the fourth quarter of 2003, Agrium anticipates the trend in year-over-year earnings improvement to continue. Agrium is comfortable with the current market consensus of $0.19 per share for the fourth quarter of 2003, which is $0.37 basic earnings per share for the second half of 2003.
KEY DEVELOPMENTS
-- North America Retail achieved record performance for the third
quarter and first nine months of the year. Earnings before
interest expense and income taxes (EBIT) was $22-million for
the quarter, as compared to $17-million during the same
quarter in 2002.
-- North America Wholesale EBIT for the third quarter of 2003 was
$26-million, up significantly from a loss of $5-million from
the third quarter of 2002.
-- South America Wholesale had its strongest third quarter
earnings since the Profertil facility began operation in 2001.
EBIT for South America Wholesale was $21-million for the third
quarter of 2003, up 110 percent over the same period in 2002.
-- The Kenai facility operated at an average 66 percent rate for
the third quarter. While the facility is currently running at
65-70 percent rates, it is possible that natural gas supply
will be reduced in the November to March period. We continue
to advance our legal and arbitration process and expect
arbitration with Unocal to commence in May 2004.
KEY INDICATORS
The following table summarizes certain key commodity prices affecting the Corporation's profitability:
First
Third Quarter Nine Months
2003 2002 2003 2002
--------------------------------------------------------------------
Grain Prices (U.S.$/bushel)
Wheat (#2 Soft Red St. L -
weekly averages) $ 3.45 $ 3.46 $ 3.35 $ 3.08
Corn (#2 Yellow -
weekly averages) $ 2.24 $ 2.43 $ 2.32 $ 2.11
Soybean (#1 Yellow -
weekly averages) $ 5.95 $ 5.59 $ 5.91 $ 4.91
--------------------------------------------------------------------
Natural Gas (U.S.$/MMBtu)
NYMEX (last three day
average price) $ 5.10 $ 3.26 $ 5.73 $ 3.00
Agrium (average cost) $ 3.18 $ 2.26 $ 3.43 $ 2.40
--------------------------------------------------------------------
Nitrogen - Ammonia
(U.S.$/metric tonne)
Black sea $ 180 $ 97 $ 166 $ 91
Agrium N.A.
(average realized price) $ 256 $ 171 $ 277 $ 180
Agrium International
(average realized price) $ 186 $ 105 $ 166 $ 96
--------------------------------------------------------------------
Nitrogen - Urea
(U.S.$/metric tonne)
NOLA $ 187 $ 136 $ 184 $ 122
Black sea (prilled) $ 144 $ 96 $ 133 $ 94
Agrium N.A.
(average realized price) $ 203 $ 142 $ 215 $ 140
Agrium International
(average realized price) $ 169 $ 121 $ 154 $ 113
--------------------------------------------------------------------
Prices for corn and wheat remain above five-year averages. Soybean and canola prices peaked in October, at or near five-year highs. NYMEX natural gas prices have been well above last year's level. However, the tightening nitrogen supply/demand fundamentals have allowed for an expansion in our margins to more normal levels.
MANAGEMENT'S DISCUSSION AND ANALYSIS
CONSOLIDATED RESULTS
Net earnings for the third quarter of 2003 were $25-million compared to $1-million for the same quarter 2002. Basic earnings per share for the quarter were $0.18 ($0.17 diluted earnings per share) compared to a basic and diluted loss of $0.01 per share for the third quarter of 2002.
Agrium's consolidated earnings before interest expense and income taxes (EBIT) increased by $35-million to $54-million for the third quarter of 2003. This increase in earnings is largely attributable to improved nitrogen profitability in Agrium's Wholesale operations as a result of higher global nitrogen prices.
Cash flow from operating activities for the third quarter was $47-million compared to $28-million in 2002, primarily due to higher cash earnings.
The improvement in operating cash flow has resulted in a stronger financial position and improved liquidity for the company. Debt, net of cash balances, declined $168-million from September 30, 2002, to September 30, 2003.
Business Unit Discussion
North America Wholesale
-- Wholesale 2003 third quarter gross profit was up $21-million
from the third quarter in 2002 as Agrium's average realized
selling price for nitrogen increased 44 percent over the same
period in 2002. This increase is primarily due to the tight
global nitrogen supply situation.
North America Retail
-- EBIT for the third quarter was up $5-million compared to the
same period in 2002. This is largely due to higher fertilizer
selling prices and increased chemical sales volumes compared
to prior year.
South America Wholesale
-- Wholesale EBIT for the third quarter increased by $11-million
over the third quarter in the previous year. This is due to
higher international nitrogen prices, a higher proportion of
sales in the domestic market, and higher production rates.
South America Retail
-- EBIT for Retail declined from $5-million in the third quarter
of 2002 to $1-million in the third quarter of 2003. The high
earnings in the third quarter of 2002 were a result of the
benefits from inventory management in relation to the
devaluation of the Argentine peso.
OUTLOOK
As Agrium looks toward the fourth quarter of 2003, there are a number of factors that may positively impact fourth quarter results:
-- The global nitrogen supply/demand balance remains tight,
despite restart of some U.S. capacity over the past four
months.
-- Through the end of August 2003, China's net urea exports were
over 600,000 tonnes. However, export availability is expected
to decline in the fourth quarter and into next spring. This is
due to increased domestic demand, lower government export
incentives and higher transportation rates.
-- Strong grain prices coupled with higher yields are expected to
lead to an improved U.S. farm income and increase cash
available to purchase crop nutrients in the coming growing
season. In Canada, canola prices are expected to remain
strong. Canola uses a higher nutrient application rate than
other competing crops.
-- After several years of drought in many of Agrium's key
markets, crop yields are closer to average this season.
Farmers in Western Canada in particular are likely to be
looking to maximize yields in the next growing season, as
grain inventories remain well below average.
-- The global grain stocks are very low going into the end of
2003 and are below 2002 record low levels due to reduced
production across Europe and the Former Soviet Union. This is
anticipated to lead to stronger global grain prices, which
supports higher fertilizer use.
-- Anticipated price improvements for potash should largely
offset the negative impact of a rising Canadian dollar and
higher ocean freight rates.
Offsetting these positive indicators are some factors that may adversely impact fourth quarter results:
-- Poor U.S. soybean yields resulted in a significant increase in
soybean prices, this may result in some limited switching
toward soybeans away from wheat and corn next spring. Soybeans
use less nitrogen fertilizer than either wheat or corn.
-- As we announced in June 2003, Unocal at that time had
indicated natural gas supply to Agrium's Kenai, Alaska
facility could be reduced to a level which would result in
Agrium running only one of its two ammonia and one of its two
urea plants at Agrium's Kenai facility. While Unocal has
supplied the Kenai facility with more natural gas than it
originally indicated, it is possible that Unocal will reduce
the gas supply in the future. If Agrium is economically unable
to offset such a reduction from other sources, the carrying
value of the Kenai facility may be adjusted. The financial
effect of this is not yet determinable.
-- The stronger Canadian dollar will negatively impact fourth
quarter results on a year-over-year basis, as it will increase
our Canadian-based labour-costs.
-- The ban on Canadian beef by key trading partners as a result
of Bovine Spongiform Encephalopathy (Mad Cow Disease) has been
partially lifted. However, the ban on live cattle shipments to
the U.S. is still having a negative impact on the Canadian
cattle industry. This will negatively impact farm incomes and
may have an effect on fertilizer sales this fall to mixed
grain/livestock farmers in Canada.
-- Global phosphate markets remain weak, due to a combination of
higher ammonia and sulphur input costs, and weak import demand
by key Asian markets. Phosphate margins are likely to remain
under pressure for most U.S. producers during the fourth
quarter. Agrium's low-cost sulphur position and firm demand
outlook in Western Canada and the Pacific Northwest should
minimize the impact on its phosphate returns.
OTHER
Agrium Inc. is a leading global producer and marketer of agricultural nutrients and industrial products and a major retail supplier of agricultural products and services in both North America and Argentina. Agrium produces and markets three primary groups of nutrients: nitrogen, phosphate and potash as well as micronutrients. Agrium's strategy is to grow through incremental expansion of its existing operations and acquisitions as well as the development, commercialization and marketing of new products and international opportunities.
Certain statements in this press release constitute forward-looking statements. Such forward-looking statements involve known and unknown risks and uncertainties, including those referred to in the Corporation's annual report to shareholders for 2002, which may cause the actual results, performance or achievements of the Corporation to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. A number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, weather conditions, the future supply, demand, price level and volatility of natural gas, future prices of nitrogen, phosphate and potash, the differential pricing of natural gas in various markets, the outcome of the dispute between the Corporation and Unocal, the future gas prices and availability at Kenai, the exchange rates for US, Canadian and Argentine currencies, the outcome of the Argentine gas price negotiations, Argentine domestic fertilizer consumption, future fertilizer inventory levels, future nitrogen, potassium and phosphate consumption in North America, future crop prices, future levels of nitrogen imports into North America and future additional fertilizer capacity and operating rates.
A WEBSITE SIMULCAST of the 2003 3rd Quarter Conference Call will be available in a listen-only mode beginning Thursday, October 30 at 8:30 a.m. MST (10:30 a.m. EST). Please visit the following website: www.agrium.com
AGRIUM INC.
Consolidated Statements of Operations and Retained Earnings
(Millions of U.S. dollars, except per share amounts)
(Unaudited)
Three months Nine months
ended ended
September 30, September 30,
---------------------------------
2003 2002 2003 2002
---------------------------------
Sales $ 592 $ 494 $ 1,953 $ 1,660
Direct freight 31 28 91 85
---------------------------------
Net sales 561 466 1,862 1,575
Cost of product 389 333 1,327 1,199
---------------------------------
Gross profit 172 133 535 376
---------------------------------
Expenses
Selling, general and
administrative 71 64 204 184
Depreciation, depletion and
amortization 34 42 101 108
Royalties and other taxes 4 5 13 13
Other expenses and Argentine
charges 9 3 28 34
---------------------------------
118 114 346 339
---------------------------------
Earnings before interest expense
and income taxes 54 19 189 37
Interest on long-term debt 15 16 44 46
Other interest - 1 4 4
---------------------------------
Earnings (loss) before income
taxes 39 2 141 (13)
---------------------------------
Current income tax (recovery) 6 1 35 (4)
Future income tax 8 - 18 3
---------------------------------
Income taxes (recovery) 14 1 53 (1)
---------------------------------
Net earnings (loss) 25 1 88 (12)
Retained earnings - beginning of
period 242 220 191 245
Change in accounting policy
(note 5) - (29) - (29)
Common share dividends declared - - (7) (7)
Preferred securities charges
(net of tax) (3) (3) (8) (8)
---------------------------------
Retained earnings - end of
period $ 264 $ 189 $ 264 $ 189
---------------------------------
---------------------------------
Earnings (loss) per share
- Basic $ 0.18 ($0.01) $ 0.64 ($0.16)
- Diluted $ 0.17 ($0.01) $ 0.60 ($0.16)
AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)
Three months Nine months
ended ended
September 30, September 30,
-------------------------------
2003 2002 2003 2002
-------------------------------
Operating:
Net earnings (loss) for the
period $ 25 $ 1 $ 88 $ (12)
Depreciation, depletion and
amortization 34 42 101 108
Future income tax 8 - 18 3
Foreign exchange and Argentine
charges 9 (3) 1 6
Net changes in non-cash working
capital (29) (12) (89) -
-------------------------------
Cash provided by operating
activities 47 28 119 105
-------------------------------
Investing:
Capital assets (36) (14) (67) (24)
Decrease (increase) in other
assets (2) 3 (2) 11
Proceeds from disposal of assets
and investments - 7 11 8
Other 20 (24) 27 (11)
-------------------------------
Cash used in investing
activities (18) (28) (31) (16)
-------------------------------
Financing:
Common shares issued 1 - 1 107
Bank indebtedness (repayment) - 11 (1) (190)
Long-term debt repayment (1) (10) (4) (14)
Common share dividends paid (7) (7) (14) (14)
Preferred securities charges paid (3) (5) (8) (8)
-------------------------------
Cash used in financing
activities (10) (11) (26) (119)
-------------------------------
Increase (decrease) in cash and
cash-equivalents 19 (11) 62 (30)
Cash and cash-equivalents -
beginning of period 152 32 109 51
-------------------------------
Cash and cash-equivalents - end
of period $ 171 $ 21 $ 171 $ 21
-------------------------------
-------------------------------
AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
As at As at
September 30, December 31,
------------------------------
2003 2002 2002
------------------------------
(Unaudited)
ASSETS
Current assets
Cash and cash-equivalents $ 171 $ 21 $ 109
Accounts receivable 271 216 187
Inventories 385 336 353
Prepaid expenses 41 30 35
------------------------------
868 603 684
Capital assets 1,454 1,406 1,400
Other assets 85 93 85
------------------------------
$ 2,407 $ 2,102 $ 2,169
------------------------------
------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
Bank indebtedness $ - $ 21 $ 1
Accounts payable and accrued
liabilities 371 270 340
Income and other taxes payable 12 5 -
Current portion of long-term debt 104 7 25
------------------------------
487 303 366
Long-term debt
Recourse debt 532 620 604
Non-recourse financing
- Profertil 125 131 132
Other liabilities 154 142 140
Future income taxes 192 147 163
------------------------------
1,490 1,343 1,405
Shareholders' equity
Share capital
Authorized: unlimited common
shares and preferred securities
Issued:
Common shares: 2003 - 126
million (2002 -126 million) 485 484 484
Preferred securities:
8% Non-convertible 2003
- 7 million (2002 -7 million) 172 171 171
6% Convertible 2003 - 2 million
(2002 - 2 million) 50 50 50
Retained earnings 264 189 191
Cumulative translation adjustment (54) (135) (132)
------------------------------
917 759 764
------------------------------
$ 2,407 $ 2,102 $ 2,169
------------------------------
------------------------------
AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
For the nine months ended September 30, 2003
(Millions of U.S. dollars, except per share amounts)
(Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES
The Corporation's accounting policies are in accordance with accounting principles generally accepted in Canada and are consistent with those outlined in the annual audited financial statements except where stated below. These interim consolidated financial statements do not include all disclosures normally provided in annual financial statements and should be read in conjunction with the Corporation's audited consolidated financial statements for the year ended December 31, 2002. In management's opinion, the interim consolidated financial statements include all adjustments necessary to present fairly such information.
Certain comparative figures have been reclassified to conform to the current year's presentation.
The interim consolidated financial statements include the accounts of Agrium Inc. and its subsidiaries.
2. STOCK BASED COMPENSATION
Had the Corporation expensed the fair value of stock based compensation to net earnings (loss), the following is pro forma net earnings (loss), basic earnings (loss) per share, and diluted earnings (loss) per share amounts for each period.
Three months ended
September 30,
--------------------------------------------------
2003 2002
--------------------------------------------------
As Reported Pro forma As Reported Pro forma
--------------------------------------------------
Net earnings (loss) $ 25 $ 23 $ 1 $ -
Earnings (loss) per
share
Basic $ 0.18 $ 0.16 $ (0.01) $ (0.02)
Diluted $ 0.17 $ 0.16 $ (0.01) $ (0.02)
Nine months ended
September 30,
--------------------------------------------------
2003 2002
--------------------------------------------------
As Reported Pro forma As Reported Pro forma
--------------------------------------------------
Net earnings (loss) $ 88 $ 84 $ (12) $ (17)
Earnings (loss) per
share
Basic $ 0.64 $ 0.60 $ (0.16) $ (0.20)
Diluted $ 0.60 $ 0.57 $ (0.16) $ (0.20)
3. EARNINGS (LOSS) PER SHARE
The following table summarizes the computation of net earnings (loss)
per share:
Three months Nine months
ended ended
September 30, September 30,
---------------------------------
2003 2002 2003 2002
---------------------------------
Numerator:
Net earnings (loss) $ 25 $ 1 $ 88 $ (12)
Preferred securities charges
(net of tax) (3) (3) (8) (8)
---------------------------------
Numerator for basic earnings
(loss) per share 22 (2) 80 (20)
---------------------------------
Preferred securities charges
(net of tax) 3 3 8 8
---------------------------------
Numerator for diluted earnings
(loss) per share $ 25 $ 1 $ 88 $ (12)
---------------------------------
---------------------------------
Denominator:
Weighted average denominator
for basic earnings per share 126 126 126 122
---------------------------------
---------------------------------
Dilutive instruments:
Stock options using the
treasury stock method 1 - 1 -
Preferred securities converted
to common shares
$175-million, eight percent 15 - 16 -
$50-million, six percent (a) 4 - 4 -
---------------------------------
Denominator for diluted
earnings per share 146 126 147 122
---------------------------------
---------------------------------
Basic earnings (loss) per
share $ 0.18 $ (0.01) $ 0.64 $ (0.16)
Diluted earnings (loss) per
share $ 0.17 $ (0.01) $ 0.60 $ (0.16)
(a) The Corporation may redeem the debentures at a redemption price
equal to 103 percent of the principal amount provided that the
price exceeds U.S. $14.3612 per common share for a specified
period of time. At any time, holders of the debentures have the
right to convert the principal amount thereof into common shares
at a conversion price of U.S. $11.9677 per common share.
There were 126 million common shares outstanding at September 30, 2003 and 2002. As at September 30, 2003, the Corporation has outstanding approximately ten million options to acquire common shares.
4. SEASONALITY
The fertilizer business is seasonal in nature. Sales are concentrated in the spring and fall planting seasons while produced inventories are accumulated throughout the year. Cash collections generally occur after the planting seasons in North America and after harvest in South America.
5. CHANGE IN ACCOUNTING POLICY
In the third quarter of 2002, under the provisions of a new accounting standard for goodwill, the Corporation completed the transitional impairment test for goodwill. The results of the test indicated that goodwill of the Corporation's phosphate business, which is included in the reportable segment entitled "North America Wholesale", was impaired. The amount of the impairment represented the entire goodwill balance of $45-million or $29-million net of tax. The resulting impairment loss was recognized as a change in accounting policy and charged to retained earnings.
6. SEGMENTED INFORMATION
The Corporation's primary activity is the production and wholesale marketing of nitrogen, potash and phosphate and the retail sales of fertilizers, chemicals and other agricultural inputs and services. The Corporation operates principally in Canada, the United States and Argentina.
Net sales between segments are accounted for at prices which approximate fair market value and are eliminated on consolidation. The reportable segment entitled "Other" includes Corporate functions and inter-segment eliminations.
7. SUBSEQUENT EVENT
On October 8, 2003, Agrium announced that its subsidiary, Nu-West Industries Inc. signed a Memorandum of Understanding with Astaris Production LLC ("Astaris") to acquire ownership of certain Astaris assets and liabilities related to Astaris' decision to cease production of purified phosphoric acid at Agrium's Conda, Idaho phosphate operation.
The financial impact of this transaction will not be reflected in these financial statements until the formal agreement is executed, which is anticipated to occur in the fourth quarter of 2003. The financial impact of this transaction is not expected to be material.
AGRIUM INC.
Segmented Earnings Before Interest Expense and Income Taxes
(Millions of U.S. dollars)
(Unaudited)
Three months ended September 30,
-----------------------------------------------
2003
-----------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
-----------------------------------------------
Net sales
- external customers $ 281 $ 214 $ 33 $ 33 $ - $ 561
- internal customers 22 - 5 - (27) -
-----------------------------------------------
Total net sales 303 214 38 33 (27) 561
Cost of product 239 138 11 27 (26) 389
-----------------------------------------------
Gross profit 64 76 27 6 (1) 172
Gross profit % 21% 36% 71% 18% 4% 31%
Expenses:
Selling, general and
administrative 7 52 1 4 7 71
Depreciation,
depletion
and amortization 24 4 4 - 2 34
Royalties and
other taxes 3 1 - - - 4
Other (income)
expenses and
Argentine charges 4 (3) 1 1 6 9
-----------------------------------------------
38 54 6 5 15 118
-----------------------------------------------
Earnings (loss) before
interest expense and
income taxes $ 26 $ 22 $ 21 $ 1 $ (16) $ 54
-----------------------------------------------
-----------------------------------------------
Three months ended September 30,
-----------------------------------------------
2002
-----------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
-----------------------------------------------
Net sales
- external customers $ 228 $ 188 $ 20 $ 30 $ - $ 466
- internal customers 15 - 1 - (16) -
-----------------------------------------------
Total net sales 243 188 21 30 (16) 466
Cost of product 200 121 8 20 (16) 333
-----------------------------------------------
Gross profit 43 67 13 10 - 133
Gross profit % 18% 36% 62% 33% 0% 29%
Expenses:
Selling, general and
administrative 8 47 1 4 4 64
Depreciation,
depletion and
amortization 31 5 5 - 1 42
Royalties and
other taxes 4 1 - - - 5
Other (income)
expenses and
Argentine charges 5 (3) (3) 1 3 3
-----------------------------------------------
48 50 3 5 8 114
-----------------------------------------------
Earnings (loss) before
interest expense and
income taxes $ (5) $ 17 $ 10 $ 5 $ (8)$ 19
-----------------------------------------------
-----------------------------------------------
Nine months ended September 30,
-----------------------------------------------
2003
-----------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
-----------------------------------------------
Net sales
- external customers $ 975 $ 747 $ 77 $ 63 $ - $1,862
- internal customers 59 - 8 - (67) -
-----------------------------------------------
Total net sales 1,034 747 85 63 (67) 1,862
Cost of product 785 530 25 52 (65) 1,327
-----------------------------------------------
Gross profit 249 217 60 11 (2) 535
Gross profit % 24% 29% 71% 17% 3% 29%
Expenses:
Selling, general and
administrative 22 151 3 8 20 204
Depreciation,
depletion and
amortization 70 13 12 1 5 101
Royalties and
other taxes 9 3 - - 1 13
Other (income)
expenses and
Argentine charges 24 (9) (1) (1) 15 28
-----------------------------------------------
125 158 14 8 41 346
-----------------------------------------------
Earnings (loss) before
interest expense and
income taxes $ 124 $ 59 $ 46 $ 3 $ (43) $ 189
-----------------------------------------------
-----------------------------------------------
Nine months ended September 30,
-----------------------------------------------
2002
-----------------------------------------------
North America South America
Wholesale Retail Wholesale Retail Other Total
-----------------------------------------------
Net sales
- external customers $ 798 $ 685 $ 47 $ 45 $ - $1,575
- internal customers 54 - 3 - (57) -
-----------------------------------------------
Total net sales 852 685 50 45 (57) 1,575
Cost of product 723 487 20 26 (57) 1,199
-----------------------------------------------
Gross profit 129 198 30 19 - 376
Gross profit % 15% 29% 60% 42% 0% 24%
Expenses:
Selling, general and
administrative 24 142 3 7 8 184
Depreciation,
depletion and
amortization 73 15 13 1 6 108
Royalties and
other taxes 9 3 - - 1 13
Other (income)
expenses and
Argentine charges 22 (7) 16 (8) 11 34
-----------------------------------------------
128 153 32 - 26 339
-----------------------------------------------
Earnings (loss) before
interest expense and
income taxes $ 1 $ 45 $ (2) $ 19 $ (26) $ 37
-----------------------------------------------
-----------------------------------------------
AGRIUM INC.
Net Sales and Gross Profit by Operating Unit and Product Line
(Millions of U.S. dollars, unless otherwise noted)
(Unaudited)
Three months ended September 30,
-------------------------------------------
2003
-------------------------------------------
Tonnes (000's)
-------------
Margin
Net Cost of Gross Inven- ($/
Sales Product Profit Sales tory Tonne)
-------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 59 $ 48 $ 11 253 325 $ 43
Urea 97 78 19 528 132 36
Nitrate and other 35 28 7 207 142 34
-------------------------------------------
Total Nitrogen 191 154 37 988 599 37
Phosphate - Dry 49 43 6 235 65 26
Phosphate - Liquid 13 11 2 41 3 49
Potash 38 23 15 406 164 37
Sulphate and other
products 12 8 4 69 129 58
-------------------------------------------
303 239 64 1,739 960 37
--------------------
North America Retail
Fertilizers 73 51 22
Chemicals 112 79 33
Other products and
services 29 8 21
---------------------
214 138 76
South America Wholesale
Nitrogen 36 10 26 196 43 133
Other products and
services 2 1 1
---------------------
38 11 27
South America Retail
Fertilizers 23 21 2
Other products and
services 10 6 4
---------------------
33 27 6
Other (27) (26) (1)
---------------------
Total $ 561 $ 389 $ 172
---------------------
---------------------
Three months ended September 30,
-------------------------------------------
2002
-------------------------------------------
Tonnes (000's)
-------------
Margin
Net Cost of Gross Inven- ($/
Sales Product Profit Sales tory Tonne)
-------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 46 $ 41 $ 5 318 341 $ 16
Urea 73 62 11 559 161 20
Nitrate and other 26 26 - 203 174 -
-------------------------------------------
Total Nitrogen 145 129 16 1,080 676 15
Phosphate - Dry 47 38 9 243 63 37
Phosphate - Liquid 11 10 1 37 11 27
Potash 33 18 15 339 156 44
Sulphate and other
products 7 5 2 60 123 33
-------------------------------------------
243 200 43 1,759 1,029 24
--------------------
North America Retail
Fertilizers 61 43 18
Chemicals 100 71 29
Other products and
services 27 7 20
---------------------
188 121 67
South America Wholesale
Nitrogen 19 8 11 155 20 71
Other products and
services 2 - 2
---------------------
21 8 13
South America Retail
Fertilizers 21 13 8
Other products and
services 9 7 2
---------------------
30 20 10
Other (16) (16) -
---------------------
Total $ 466 $ 333 $ 133
---------------------
---------------------
Nine months ended September 30,
-------------------------------------------
2003
-------------------------------------------
Tonnes (000's)
-------------
Margin
Net Cost of Gross Inven- ($/
Sales Product Profit Sales tory Tonne)
-------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 253 $ 193 $ 60 1,070 325 $ 56
Urea 300 232 68 1,597 132 43
Nitrate and other 127 102 25 737 142 34
-------------------------------------------
Total Nitrogen 680 527 153 3,404 599 45
Phosphate - Dry 143 121 22 646 65 34
Phosphate - Liquid 43 34 9 131 3 69
Potash 116 72 44 1,226 164 36
Sulphate and other
products 52 31 21 285 129 74
-------------------------------------------
1,034 785 249 5,692 960 44
-------------------
North America Retail
Fertilizers 305 217 88
Chemicals 343 262 81
Other products and
services 99 51 48
---------------------
747 530 217
South America Wholesale
Nitrogen 81 23 58 480 43 121
Other products and
services 4 2 2
---------------------
85 25 60
South America Retail
Fertilizers 45 40 5
Other products and
services 18 12 6
---------------------
63 52 11
Other (67) (65) (2)
---------------------
Total $1,862 $1,327 $ 535
---------------------
---------------------
Nine months ended September 30,
-------------------------------------------
2002
-------------------------------------------
Tonnes (000's)
-------------
Margin
Net Cost of Gross Inven- ($/
Sales Product Profit Sales tory Tonne)
-------------------------------------------
North America Wholesale
Nitrogen
Ammonia $ 165 $ 152 $ 13 1,109 341 $ 12
Urea 231 209 22 1,813 161 12
Nitrate and other 111 110 1 883 174 12
-------------------------------------------
Total Nitrogen 507 471 36 3,805 676 9
Phosphate - Dry 142 123 &nb
