Agrium Inc. is a leading global producer and marketer of crop nutrients 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. 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

http://www.agrium.com/

Agrium Delivers Record First Quarter Net Earnings of $195-million
Release Date: 5/2/2008 
CALGARY, Alberta -- Agrium Inc. (TSX and NYSE: AGU) announced today record first quarter net earnings of $195-million ($1.23 diluted earnings per share) in 2008, a significant improvement over the net loss of $11-million ($0.08 diluted loss per share) for the same period in 2007. 
To view the full financial results click here. PDF

Agrium Reports Record Fourth Quarter and Annual Results Date: 2/13/2008 
CALGARY, ALBERTA, Feb 13, 2008 (MARKET WIRE via COMTEX News Network) -- ALL AMOUNTS ARE STATED IN U.S.$ 
Agrium Inc. (TSX: AGU) (NYSE: AGU) announced today record net earnings for the fourth quarter of 2007 of $172-million ($1.24 diluted earnings per share), versus a net loss of $62-million ($0.47 diluted loss per share) in the fourth quarter of 2006. On an annual basis, 2007 was also a record year for Agrium, with net earnings of $441-million ($3.25 diluted earnings per share), significantly higher than last year and surpassing the previous record achieved in 2005 of $283-million ($2.12 diluted earnings per share). 
"Our performance this quarter was a result of our three business units all delivering record fourth quarter results, due to a combination of excellent business fundamentals and strong operating performance. Furthermore, the outlook for 2008 is outstanding. Prices for virtually all major row crops are at record high levels, providing growers with a strong incentive to optimize use of crop inputs. Strong demand for crop inputs, combined with limited capacity additions for all three nutrients, is expected to result in the continuation of tight supply and demand conditions for global nutrient markets," said Mike Wilson, Agrium President and CEO. 
Unrealized gas hedging gains of $15-million ($0.08 diluted earnings per share) and $50-million ($0.25 diluted earnings per share) in stock-based compensation expense are included in the quarter. A lower than expected tax rate, partly due to a Canadian federal corporate income tax rate reduction, resulted in our tax expense being $28-million ($0.20 diluted earnings per share) lower than expected in the fourth quarter. 
KEY DEVELOPMENTS 

- Agrium's Wholesale gross profit was a record $343-million in the fourth quarter of 2007 ($97-million in 2006) and Wholesale EBITDA was a record $307-million for the quarter ($99-million in 2006) due to exceptional crop nutrient prices and margins, continued solid agricultural demand and strong operating performance. On an annual basis, Wholesale's 2007 EBITDA reached $786-million, more than double last year's level. Wholesale's gross profit and EBITDA were an all-time high for any quarter, even though the second quarter is normally the strongest quarter of the year. Gross profits in the fourth quarter of 2007 for all three crop nutrients were more than double last year's levels. 
- Agrium's Retail EBITDA was a record $47-million for the fourth quarter of 2007, up from $28-million last year. On an annual basis, Retail EBITDA reached $210-million, up from $125-million last year and above our previously stated goal of approaching $200-million. The record full year results were due to stronger crop nutrient, seed and services sales and margins, largely associated with synergies captured from the Royster-Clark acquisition. We believe that spring fertilizer and other crop input sales volumes will be strong, despite solid fertilizer application experienced this past fall. 
- Advanced Technologies EBITDA was $4-million for the fourth quarter of 2007 and $29-million for the year, which was well above our annual target. We achieved record ESN(R) sales volumes of over 120,000 tonnes in 2007 and anticipate a further increase in sales volumes in 2008, based on strong customer demand. 
- Agrium continues to work with the U.S. Federal Trade Commission (FTC) on obtaining clearance to proceed with the UAP Holding Corp. (UAP) retail acquisition announced in December, 2007 and remains confident of a successful close to the transaction. We received clearance from Canadian competition regulators on January 18, 2008. 
2007 Fourth Quarter Operating Results 
NET EARNINGS 
Agrium's fourth quarter consolidated net earnings were $172-million, or $1.24 diluted earnings per share, compared to a net loss of $62-million, or $0.47 diluted loss per share, for the same quarter of 2006. EBIT was $250-million for the fourth quarter of 2007 versus EBIT loss of $87-million for the fourth quarter of 2006. This improved EBIT performance was comprised of an increase in gross profit of $302-million and a decrease in expenses of $35-million. 
Consolidated gross profit in the fourth quarter of 2007 was $533-million compared to $231-million in the fourth quarter of 2006. Strong crop prices drove increased retail crop input demand contributing to a $54-million increase in gross profit in our Retail business segment as sales and margins for crop nutrients, crop protection products and seed, services and other all showed growth over the comparative period. Wholesale gross profit more than tripled with an increase of $246-million over the comparative period due to significant improvements in gross profit for all three nutrients. Our Advanced Technologies business segment contributed an additional $8-million to our quarter-over-quarter gross profit increase. 
Excluding the effect of a one-time impairment charge of $136-million (pre-tax) in the fourth quarter of 2006, expenses have increased $101-million quarter-over-quarter. This increase in expenses primarily reflects a combination of the following items: 
- $39-million increase in stock-based compensation expense due to a significant increase in our share price from $54.38 at September 30, 2007 to $72.21 at December 31, 2007; 
- $29-million increase in Retail's selling expenses associated with increased sales activity; 
- $20-million increase in expenses driven by growth in our business, including resulting higher royalties and other taxes and general and administrative costs; and, 
- $13-million increase in other expenses due to the absence of a 2006 gain on sale of a non-core asset. 
The enacted Canadian tax rate reduction and the tax effect of foreign exchange fluctuations in the fourth quarter were the principal reasons for the reduction in our fourth quarter tax rate. 
BUSINESS SEGMENT PERFORMANCE 
Retail 
Retail's 2007 fourth quarter net sales were $555-million compared to $384-million in the fourth quarter of 2006, representing a 45 percent improvement in net sales quarter-over-quarter. Gross profit was $179-million, a $54-million increase over the $125-million gross profit earned in the same quarter last year. Retail fourth quarter EBIT nearly doubled from $20-million in the fourth quarter of 2006 to $39-million in the fourth quarter of 2007. 
The increase in net sales and gross profit in the fourth quarter of 2007 versus the same quarter of 2006 was attributed to: 
- Crop nutrient sales increased $147-million to $393-million due to a favorable combination of increases in both volume and selling prices. Gross profit improved $36-million to $83-million due to improvements in per tonne margins along with the increased volume. Crop nutrient product margins increased to 21 percent this quarter compared to 19 percent for the same quarter last year. Retail's crop nutrients business continued to benefit from strong fundamentals in our South American operations, which posted significant increases in fourth quarter crop nutrient sales and gross profit. In addition, improved fall 2007 weather conditions, particularly in the Eastern Cornbelt locations, contributed to increased crop nutrient sales in our North American operations when compared to the poor weather conditions throughout most of the region in the fall of 2006. 
- Crop protection product sales increased by $6-million to $87-million and gross profit increased by $7-million to $56-million. Synergies realized with the Royster-Clark acquisition contributed to improved fourth quarter crop protection gross profit. In addition, gross profits increased due to fourth quarter payments of discretionary rebate programs from our suppliers. These factors contributed to the improvement in crop protection products margins from 60 percent in the fourth quarter of 2006 to 64 percent this quarter. 
- Seed, services and other product sales and gross profit for the fourth quarter of 2007 also improved over the prior year with a sales increase of $18-million to $75-million and gross profit increase of $11-million to $40-million. Aided by strong seed demand in North America for fall-seeded wheat, our seed sales and gross profit increased by $8-million and $6-million, respectively. Our annual average seed sales grew by 23 percent in 2007 versus 2006. Application revenues and gross profit also increased over the fourth quarter of 2006 by $5-million and $4-million, respectively, primarily due to an increase in fourth quarter fertilizer volume. 
- Our Kansas and Oklahoma retail outlets, purchased earlier in 2007, accounted for sales and gross profit increases of $16-million and $4-million, respectively for the quarter. 
Retail selling expenses increased $29-million quarter-over-quarter, from $98-million to $127-million. The additional expenses are largely attributable to increased sales volumes. Selling expenses as a percentage of net sales have declined from 26 percent in the fourth quarter of 2006 to 23 percent this quarter. 
Wholesale 
Wholesale achieved an all-time record gross profit for the fourth quarter of 2007. Wholesale fourth quarter net sales were $908-million compared to $536-million in the fourth quarter of 2006. Gross profit was $343-million, more than triple the $97-million gross profit earned in the same quarter last year. EBIT of $277-million was up dramatically from the fourth quarter 2006 EBIT loss of $64-million. Gross profit for all three of our nutrient products increased significantly compared with the fourth quarter of 2006, due to strong selling prices, excellent customer demand and strong operating performance. Demand for all three nutrients continues to be exceptional in our sales regions heading into the spring season. 
The increase in net sales and gross profit in the fourth quarter of 2007 versus the same quarter of 2006 is attributed to: 
- Nitrogen sales increased by more than 60 percent, increasing $211-million to $555-million and gross profit more than tripled with an increase of $160-million to $225-million. Gross profit for domestic nitrogen increased by $129-million and international gross profit doubled quarter-over-quarter to $62-million as sales volumes for all major nitrogen products were up slightly over the same period last year. Realized nitrogen sales prices were $126 per tonne higher than the fourth quarter of last year, and $49 per tonne higher than the third quarter of 2007, due to tight global and North American market conditions. The combination of record nitrogen prices and only a slight increase in costs due to higher gas prices resulted in record total nitrogen margins of $151 per tonne and domestic nitrogen margins of $138 per tonne for the fourth quarter of 2007. 

- Potash sales increased $44-million to $93-million and gross profit more than doubled to $57-million due to higher domestic and international demand and sales prices. Realized potash sales prices increased by $43 per tonne compared to the fourth quarter of 2006 and by $17 per tonne compared to the third quarter of 2007. The majority of the increase in gross profit was from the domestic market. Domestic volumes increased by 112,000 tonnes from the fourth quarter of 2006, versus an increase of 39,000 tonnes for international sales. Domestic margins increased by $65 per tonne from the fourth quarter of 2006, versus an increase of $20 per tonne for international sales. Cost of product sold on a per tonne basis was lower than the fourth quarter of last year and the third quarter of 2007, due primarily to higher production volumes. 
- Phosphate sales more than doubled to $139-million and gross profit increased ten times or by $43-million to $47-million as a result of record phosphate selling prices and strong customer demand. Total realized sales prices increased by $184 per tonne compared to the fourth quarter of 2006 and by $39 per tonne compared to the third quarter of 2007. Sales volumes were up almost 50 percent over the fourth quarter of 2006. Phosphate margins increased $155 per tonne versus the fourth quarter of 2006, to reach an all-time record $177 per tonne. Phosphate production volume was 23 percent higher than the third quarter of 2007. 
Wholesale EBIT for the fourth quarter of 2007 includes an $11-million increase quarter-over-quarter in stock-based compensation expense, due to a significant increase in our share price. It also includes $7-million in costs related to the previously announced closure of our Kenai nitrogen fertilizer operations. Wholesale EBIT in the fourth quarter of 2006 included a $136-million impairment charge on the carrying value of our Canadian phosphate assets as well as a $13-million one-time gain on sale for divestiture of a non-core oil and gas property in the Canadian Arctic. 
Wholesale's overall natural gas cost in the fourth quarter of 2007 was $5.68/MMBtu compared with $4.97/MMBtu for the same quarter of 2006, due to higher global gas costs quarter-over-quarter. The U.S. benchmark (NYMEX) natural gas price for the fourth quarter of 2007 was $7.03/MMBtu compared with $6.62/MMBtu in the same period of 2006. The AECO (Alberta) basis differential averaged $0.92/MMBtu lower than NYMEX for the fourth quarter of 2007, down slightly from the same period last year. 
Included in Other expenses for the fourth quarter of 2007 was a net gain of $5-million on natural gas derivatives, comprised of a $15-million unrealized gain representing the change in fair value of derivatives outstanding at December 31, 2007 and a $10-million realized loss on the settlement of derivatives during the quarter. The comparative net gain for the fourth quarter of 2006 was nil. 
Advanced Technologies 
Advanced Technologies' fourth quarter 2007 net sales were $70-million compared to $36-million in the fourth quarter of 2006. Gross profit was $15-million in the fourth quarter of 2007, or $8-million higher than the fourth quarter of 2006, driven by increased volumes and margins for ESN(R). ESN(R) sales volumes surpassed 120,000 tonnes in 2007 compared with 58,000 tonnes in 2006. EBIT was a loss of $2-million for the fourth quarter of 2007, consistent with a similar loss of $2-million for the comparative period. Fourth quarter selling, general and administrative expenses have increased over the similar quarter last year due to increased marketing activity and higher incentive accruals. Depreciation and amortization also increased by $2-million quarter-over-quarter. Expenses have increased as we implement our growth strategy in Advanced Technologies.
Other 
EBIT for our Other non-operating business segment for the fourth quarter of 2007 was a loss of $64-million compared to a loss of $41-million for the same period last year. The increase in the EBIT loss of $23-million quarter-over-quarter is mainly due to an increase in stock-based compensation expense of $28-million driven by a significant increase in our share price.