Agrium Inc. reported a 43 percent increase in consolidated net earnings, to $193 million ($1.20 per diluted share) on sales of $3.18 billion for the fourth quarter ending Dec. 31, 2011, up from the year-ago $135 million ($.86 per share) on sales of $2.4 billion.
Retail fourth-quarter gross profit was up, at $452 million on sales of $1.83 billion from the year-ago $351 million and $1.32 billion, respectively. However, EBIT was off at $37 million from $46 million.
Agrium said Retail crop nutrient sales reached $1 billion during the quarter, compared to the year-ago $827 million. It said the 25 percent sales increase was due to significantly higher nutrient prices and the addition of the Landmark business in Australia. This was partially offset by lower North American sales volumes, which were down 9 percent due to a shorter 2011 fall application season. Crop nutrient gross profits were up only slightly for the quarter, to $142 million from the year-ago $140 million.
Wholesale fourth-quarter gross profit was $556 million on sales of $1.45 billion, up from $340 million on sales of $1.2 billion. EBIT was $507 million, up from $315 million. Agrium cited higher realized prices and margins for all major nutrients and strong sales volumes despite global economic uncertainty.
The company particularly noted increased international nitrogen sales from its Profertil facility in Argentina, as well as increased ammonia sales in the U.S. Fourth-quarter Wholesale domestic ammonia sales were 377,000 mt at an average price of $638/mt, up from the year-ago 314,000 mt and $466/mt, respectively.
Nitrogen gross profit doubled to $322 million on sales of $595 million, up from the year-ago $160 million on sales of $397 million. Total tons sold were 1.06 million mt, up from 980,000 mt. The average price was $562/mt, up from $406/mt, while the margin per mt moved up to $304/mt from $163/mt.
Like other major potash suppliers, North American volumes were down during the quarter, while Offshore volumes were up. Domestic volumes were down 33 percent, to 177,000 mt from the year-ago 236,000 mt. The average domestic price, however, was still up at $581/mt from $444/mt. Potash gross profit was up at $121 million on sales of $188 million, versus the year-ago $96 million on sales of $158 million. Offshore volumes were 221,000 ($386/mt), up from the year-ago 181,000 mt ($292/mt). Total potash volumes were 398,000 mt ($473/mt), down from 417,000 mt ($378/mt). The average potash margin was $304/mt, up from the year-ago $228/mt.
Phosphate gross profit was up, at $89 million on sales of $232 million versus the year-ago $54 million and $165 million, respectively. Sales volumes were up at 285,000 mt with an average price of $813/mt and margins of $313/mt, compared to the year-ago 246,000 mt, $672/mt, and $218/mt, respectively.
Advanced Technology reported a fourth-quarter gross profit of $38 million on sales of $146 million, up from the year-ago $24 million and $99 million, respectively. However, EBIT was a negative $56 million due to a $61 million impairment the company took for its investment in Hanfeng Evergreen Inc. in China. Agrium said it no longer regards Hanfeng as being integral to its strategic growth plans; however, it says it plans to maintain its equity investment. The 2011 EBIT for the tech unit was $2 million.
Agrium also reported losses from discontinued operations of $134 million related to its Australian assets – $85 million due to an inventory write-off, and $37 million related to an investment in Hi-Fert Pty. Ltd.
Full-year net income was up 93 percent to $1.37 billion ($8.68 per share) on sales of $15.5 billion, up from the prior year $713 million ($4.51 per share) on sales of $10.7 billion.
Retail full-year gross profit was $2.3 billion on sales of $10.3 billion with an EBIT of $600 million, versus the prior year $