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Agrium Announces Best Quarterly Earnings in Six Years.
CALGARY, Alberta -- ALL AMOUNTS ARE STATED IN U.S.$
Agrium Inc. (TSX: AGU) (NYSE: AGU) announced today that net earnings for the second quarter of 2004 were $75-million ($0.52 diluted earnings per share), a significant improvement over net earnings of $69-million ($0.47 diluted earnings per share) for the same period in 2003. Net earnings for the first six months of the year were $87-million ($0.60 diluted earnings per share) exceeding 2003 net earnings of $63-million ($0.43 diluted earnings per share) for the same period. Net earnings for the first six months of 2004 improved over the prior period, despite higher costs relating to our litigation with Union Oil Company of California ("Unocal"). These Kenai related costs include Earn-out expenses (under dispute), litigation charges and other expenses, including higher gas costs relating to excess gas royalties. In total, these costs amounted to over $27-million for the first half of 2004, compared to a total of only $2-million in the first half of 2003. Second quarter results do not reflect the positive impact of the Arbitration Panel ruling, including $39-million in damages awarded to Agrium, which will be recorded in the third quarter of 2004. "The second quarter results were the best in six years and represent a continuation of what we believe to be an improving nitrogen cycle," said Mike Wilson, Agrium's President and CEO. Agrium's gross profit was 12 percent higher than the same period in 2003. Beginning in June, nitrogen prices bounced back above the near historic highs in January and February. Potash prices continued to increase while phosphate prices remained relatively stable. Retail sales rebounded to post an 18 percent improvement in EBIT over the second quarter of 2003. "The outlook for fertilizer fundamentals continues to be positive and as a result we expect ...See the full content of this document
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