Agrium Inc. reported record results for the fourth quarter ending Dec. 31, 2010, with net earnings of $158 million ($1.00 per diluted share) on sales of $2.4 billion, up from the year-ago $30 million ($.19 per diluted share) on sales of $1.5 billion. Full-year net income was $714 million ($4.52 per share) on sales of $10.74 billion, up from the prior year’s $366 million ($2.33 per share) on sales of $9.3 billion.
“Agrium’s record results in the fourth quarter of 2010 are an illustration of Agrium’s earnings power across the value chain as we continue to take advantage of the strength in global agricultural fundamentals,” said Mike Wilson, Agrium president and CEO. “Global crop prices and margins are expected to remain well above historic levels in 2011 as a result of very low global grain stocks, providing continued support for the entire crop input market. North American nutrient inventories are tight and are expected to remain so as we move into the spring season.”
Agrium’s Retail sector set records for the fourth quarter with EBIT of $47 million on sales of $1.32 billion, up from a year-ago loss of $57 million on sales of $738 million. Agrium attributed the uptick to the early harvest, favorable weather during application season, high crop prices, and the need by growers to catch up on application rates. Crop nutrient sales were $827 million, up from the year-ago $431 million. Nutrient gross profits were $140 million, up from the year-ago $46 million. Nutrient volumes were 60 percent higher than the year-ago period. EBIT included a $7 million loss for Landmark, the Australian retail business, which was acquired from AWB Ltd. for the approximate one-month period it was owned by Agrium in December.
Full-year Retail EBIT was $410 million on sales of $6.94 billion, up from the year-ago $163 million on sales of $6.16 billion. Crop nutrient net sales were $3 billion, up from the prior year’s $2.52 billion. Nutrient gross profits were $541 million, up from the year-ago $212 million.
Fourth-quarter Wholesale EBIT was $306 million on sales of $1.1 billion, up from the year-ago $140 million on sales of $716 million. These sales set a fourth-quarter record. Total nitrogen sales volumes were 980,000 mt at an average price of $378/mt, versus the year-ago 930,000 mt and $316/mt. Potash volumes were 418,000 mt ($360/mt) versus the year-ago 353,000 mt ($382/mt), while phosphate volumes were 246,000 mt ($624/mt) versus the year-ago 232,000 mt ($392/mt).
Full-year Wholesale EBIT was $866 million on sales of $3.73 billion, up from the prior year’s $495 million on sales of $3 billion. Total nitrogen volumes were 3.9 million mt ($343/mt), compared to the prior year’s 3.77 million mt ($331/mt). Potash volumes surged to 1.87 million mt ($346/mt) versus the prior year’s 763,000 mt ($436/mt). Phosphate volumes were 1 million mt ($527/mt), compared to the prior year’s 1 million mt ($434/mt).
Fourth-quarter Advanced Technology EBIT was $2 million on sales of $97 million, up from the year-ago loss of $6 million on sales of $95 million. Full-year EBIT was $12 million on sales of $390 million, up from the prior year $3 million on sales of $304 million.
Going forward, Agrium says the most significant turnaround in 2011 will occur at its Redwater nitrogen facility in June.