CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today that it expects second quarter results to be approximately $1.00 diluted earnings per share, compared to earlier guidance provided for the quarter of $1.02 to $1.12.  The revision is primarily due to lower than expected wholesale sales volumes for U.S. nitrogen and international potash.  Our Retail division was impacted to a lesser extent due to lower overall U.S. fertilizer demand.  These items are partially offset by approximately $0.13 diluted earnings per share positive impact from recent reductions to Canadian federal and provincial tax rates. 

Forward-Looking Statements

Certain statements in this press release constitute forward-looking statements.  Such forward-looking statements involve known and unknown risks and uncertainties as well as various assumptions and business sensitivities, including those referred to in the management discussion and analysis section of the Corporation’s most recent Annual Report to shareholders as well as those risk factors described in the Corporation’s most recent Annual Information Form, 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. 

The major assumptions for our second quarter update are primarily dependent on, but not limited to:

• that the majority of our natural gas hedge positions will qualify for hedge accounting treatment; 
• that the average NYMEX gas price for the second quarter will not be significantly different than the current level of approximately $6/MMBtu;
• nutrient prices will not change significantly from current levels for the remainder of the month;
• that the exchange rate for the Canadian dollar, expressed in U.S. dollars, will not increase significantly from current levels of approximately C$1.11 to U.S.$1.00.

Other factors that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to, weather conditions, future prices of nitrogen, phosphate and potash, future changes to tax rates, variability in and regional price differentials in various North American gas prices, the future gas prices and availability at Kenai, the exchange rates for U.S., Canadian and Argentine currencies, South American domestic fertilizer consumption and government policies, China’s urea trade policies and volumes, future fertilizer inventory levels, future nitrogen, potassium and phosphate consumption and crop protection chemical application rates in North America, future crop prices, future levels of nitrogen imports into North America and future additional fertilizer capacity and operating rates, and the potential inability to integrate new business acquisitions as planned or within the time predicted. Agrium disclaims any intention or obligation to update or revise any forward-looking information as a result of new information or future events.

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