Agrium Inc. reported net earnings of $99 million ($0.66 per diluted share) on sales of $2.87 billion for the fourth quarter ending Dec. 31, 2013, compared to the year-ago $354 million ($2.34 per share) on sales of $3.1 billion.
“Agrium’s Retail results were excellent this quarter, particularly considering the decline in nutrient prices that occurred and the compressed fall application season in the U.S.,” said Chuck Magro, Agrium president and CEO. "Retail achieved record fourth quarter results due to increased margins across almost all shelves. Our Wholesale business unit, which has more direct exposure to volatility in nutrient markets, saw their results impacted by lower global prices across all nutrients. Global nitrogen and phosphate markets have firmed significantly in early 2014 in response to what we expect will be a strong spring season.”
Fourth-quarter Retail net earnings were $123 million on sales of $2.1 billion, up from the year-ago $75 million and $1.97 billion, respectively. Gross profits were up for all five major Retail segments, with crop nutrients posting profits of $178 million on sales of $1.05 billion, up from the year-ago $155 million and $1.1 billion. Retail volumes were up at 1.95 million mt with an average selling price of $539/mt and margin of $92/mt, versus the year-ago 1.68 million mt, $651/mt, and $91/mt, respectively.
Fourth-quarter Wholesale net earnings were $160 million on sales of $963 million, down from the year-ago $447 million and $1.27 billion, respectively. Nitrogen and Potash profits were down, while Phosphates were in the loss column at $4 million on sales of $159 million, compared to the year-ago $47 million and $201 million, respectively. The company cited higher ammonia and phosphate rock costs. Phosphate volumes were up at 285,000 mt with prices at $560/mt and margins at negative $16/mt, compared to the year-ago 279,000 mt, $722/mt and $166/mt, respectively.
Wholesale Nitrogen volumes were 907,000 mt with margins of $144/mt, down from the year-ago 966,000 mt and $304/mt. Urea Sales were off due to outages at Redwater and Carseland. Potash volumes were 344,000 mt with margins of $112/mt, versus the year-ago 341,000 mt and $233/mt.
For the fourth quarter Advanced Technology had a $1 million loss on sales of $67 million, versus the year-ago income of $15 million on sales of $77 million. Figures represent only the Environmentally Smart Nitrogen (ESN) and Micronutrients units, which will be reflected in Wholesale going forward.
Results include a $257 million gain on the purchase of Viterra Inc. assets and a $75 million Australian insurance recovery, as well as a $220 million goodwill impairment on the Australian Landmark assets and a $60 million writedown on Advance Technology assets. Viterra results were also included as they came onboard Oct. 1, 2013, and reflected an EBITDA loss of $12 million, which included $8 million in integration costs.
Full-year earnings were $1.06 billion ($7.20 per share) on sales of $15.7 billion, down from 2012’s $1.5 billion ($9.55 per share) and $16 billion, respectively.
Full-year Retail net income was $748 million on sales of $11.9 billion, compared to 2012’s $757 million and $11.5 billion, respectively. Gross profits were up for all five Retail categories, with crop nutrients at $839 million on sales of $5 billion, versus 2012’s $821 million and $5.1 billion, respectively. Retail sold 8.62 million mt of crop nutrients in 2013 with an average price of $579/mt and a margin of $97/mt, compared to 2012’s 8.16 million mt, $628/mt, and $101/mt, respectively.
Full-year Wholesale net income was $1.03 billion on sales of $4.34 billion, down from 2012’s $1.69 billion on sales of $5.06 billion. Phosphate volumes were 1.03 million mt with margins of $65/mt, versus 2012’s 1.09 million mt and $181/mt.
Full-year