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Agrium Reports Third Quarter Results


Agrium Reports Third Quarter Results

CALGARY, ALBERTA -- (Marketwired) -- 11/05/13 --

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today consolidated net earnings ("net earnings") of $76-million ($0.52 diluted earnings per share) for the third quarter of 2013, compared with net earnings of $129-million in the third quarter of 2012 ($0.80 diluted earnings per share).

The 2013 third quarter results included a pre-tax share based payments recovery of $21-million ($0.11 diluted earnings per share), a write-down on our Hanfeng Evergreen Inc. investment of $12-million ($0.08 diluted earnings per share) and a loss of $2-million ($0.01 diluted earnings per share) on natural gas and other hedge positions. Excluding these items, net earnings would have been $73-million ($0.50 diluted earnings per share).(1)

(1) Third quarter effective tax rate of 25 percent was used for adjusted diluted earnings per share calculation, excluding the write-down on Hanfeng Evergreen Inc. as there was no tax impact.

"Agrium's Retail business unit had one of its strongest third quarters on record, with EBITDA(2) of $147-million. This was driven largely by high usage of crop protection products and related application services in our North American market. The late growing season in North America, combined with uncertainty in the fertilizer markets caused many customers to delay crop nutrient purchases," commented Mike Wilson, Agrium's President and CEO.

(2) See "Additional and Non-IFRS Measures" in our 2013 third quarter Management's Discussion and Analysis.

"Additionally, unplanned lost production due to outages at our Redwater and Carseland facilities reduced product availability in the third quarter and will impact fourth quarter sales volumes. This is expected to impact fourth quarter earnings by approximately $0.20 per share," added Mr. Wilson.

"Despite any short term factors or market fluctuations, we continued to demonstrate our confidence in the ability of the business to generate excess cash flow through the commodity cycle by substantially increasing the dividend in the third quarter and continuing to execute on our share buy-back program," concluded Mr. Wilson.

Agrium is providing guidance for the fourth quarter of 2013 of $0.80 to $1.25 diluted earnings per share. This excludes gains or losses on foreign exchange and derivative hedge positions, Retail operating results for acquired Viterra assets and related integration costs and purchase price adjustments, and share-based payments expense in our estimated fourth quarter results.(3)

(3) See disclosure in the section "Outlook, Key Risks and Uncertainties" in our 2013 third quarter Management's Discussion and Analysis and additional assumptions outlined on the following page.

MANAGEMENT'S DISCUSSION AND ANALYSIS

November 5, 2013

Unless otherwise noted, all financial information in this Management's Discussion and Analysis ("MD&A") is prepared using accounting policies in accordance with International Financial Reporting Standards ("IFRS") and is presented in accordance with International Accounting Standard 34 - Interim Financial Reporting. All comparisons of results for the third quarter of 2013 (three months ended September 30, 2013) are against results for the third quarter of 2012 (three months ended September 30, 2012). All dollar amounts refer to United States ("U.S.") dollars except where otherwise stated. Certain financial measures in this MD&A are not prescribed by IFRS, and are defined in the "Additional and Non-IFRS Financial Measures" section of this MD&A.

The following interim MD&A is as of November 5, 2013 and should be read in conjunction with the consolidated interim financial statements for the three and nine months ended September 30, 2013 and 2012 (the "Consolidated Financial Statements"), and the annual MD&A and financial statements for the year ended December 31, 2012 included in our 2012 Annual Report to Shareholders to which readers are referred. The Board of Directors carries out its responsibility for review of this disclosure principally through its Audit Committee, comprised exclusively of independent directors. The Audit Committee reviews, and prior to publication, approves this disclosure, pursuant to the authority delegated to it by the Board of Directors. No update is provided to the disclosure in our annual MD&A where an item is not material or there has been no material change from the discussion in our annual MD&A. In respect of Forward-Looking Statements, please refer to the section entitled "Forward-Looking Statements" after the "Outlook, Key Risks and Uncertainties" section of this MD&A.

The major assumptions made in preparing our fourth quarter guidance are outlined below and include but are not limited to:


 
--  North America weather patterns will support normal fall applications; 
 
--  Wholesale realized selling prices through the fourth quarter of 2013
    will approximate current benchmark prices except for selling prices on
    volumes already committed under programs; 
 
--  North America Wholesale produced fertilizer sales volumes will
    approximate sales volumes in the same quarter of 2012; 
 
--  North America Wholesale anticipated sales volumes are approximately 75
    percent committed at fixed prices in the fourth quarter of 2013; 
 
--  Utilization for Wholesale's potash and phosphate facilities will average
    approximately 88 percent in the fourth quarter of 2013 compared to 86
    percent in the same quarter of 2012; 
--  Utilization for Wholesale's North American nitrogen facilities will
    average approximately 75 percent in the fourth quarter of 2013 compared
    to 95 percent in the same quarter of 2012, due to outages at our
    Redwater and Carseland nitrogen facilities this year; 
 
--  Retail North America fertilizer margin percentages will be higher than
    the 14 percent realized in the fourth quarter of 2012; 
 
--  Retail North America chemical margin percentages will be lower than the
    48 percent realized in the fourth quarter of 2012; 
 
--  Retail North America fertilizer sales volumes will be slightly higher
    than in the same quarter of 2012; 
 
--  The average NYMEX gas price will not deviate significantly from
    approximately $3.90 per MMBtu; and 
 
--  Guidance issued excluding the fourth quarter effects of: 
    --  Share-based payments; 
    --  Gains or losses on foreign exchange and derivative hedge positions;
        and  
    --  Retail operating results for acquired Viterra assets and related
        integration costs and purchase price adjustments. 

2013 Third Quarter Operating Results

CONSOLIDATED NET EARNINGS

Agrium's 2013 third quarter consolidated net earnings ("net earnings") were $76-million, or $0.52 diluted earnings per share, compared to net earnings of $129-million, or $0.80 diluted earnings per share, for the same quarter of 2012.


 
Financial Overview                                                          
                                                                            
----------------------------------------------------------------------------
(millions of U.S.                                                           
 dollars, except        Three months ended      Nine months ended September 
 per share amounts        September 30,                     30,             
                                             %                            % 
and where noted)     2013  2012 Change  Change   2013   2012 Change  Change 
-----
-----------------------------------------------------------------------
Sales               2,869 2,832     37       1 13,109 13,175    (66)     (1)
----------------------------------------------------------------------------
Gross profit          641   739    (98)    (13) 3,079  3,375   (296)     (9)
----------------------------------------------------------------------------
Expenses              505   543    (38)     (7) 1,644  1,712    (68)     (4)
----------------------------------------------------------------------------
Earnings before                                                             
 finance costs                                                              
and income taxes                                                            
 ("EBIT")             136   196    (60)    (31) 1,435  1,663   (228)    (14)
----------------------------------------------------------------------------
Net earnings           76   129    (53)    (41)   964  1,144   (180)    (16)
----------------------------------------------------------------------------
Diluted earnings                                                            
 per share           0.52  0.80  (0.28)    (35)  6.50   7.21  (0.71)    (10)
----------------------------------------------------------------------------
Effective tax rate                                                          
 (%)                   25    22    N/A       3     27     27    N/A       - 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sales

Sales increased by $37-million to $2.9-billion for the third quarter of 2013 and decreased $66-million to $13.1-billion for the first nine months of 2013 compared to the third quarter and first nine months of 2012, respectively. Factors that affected our performance during the third quarter of 2013 compared to the third quarter of 2012 include the following:


 
--  Retail sales increased by 15 percent to $2.1-billion as there was a
    return to a more regular seasonal crop input demand for the current
    quarter compared to the 2012 earlier spring season which shifted sales
    typically earned from the third quarter into the first half for crop
    nutrients and crop protection products. The increase was complemented by
    incremental sales from recently acquired Retail locations; 
--  Wholesale sales decreased by 24 percent to $752-million due to lower
    realized sales prices across all products, lower urea sales volumes
    resulting from plant outages at our nitrogen facilities which lowered
    product available for sale and lower phosphate sales volumes; and 
--  Advanced Technologies ("AAT") sales decreased by 14 percent to $108-
    million largely due to lower Environmentally Smart Nitrogen ("ESN")
    volumes and sales prices as a result of the soft urea market. 

Gross Profit

Our gross profit for the third quarter of 2013 was $641-million, a decrease of $98-million compared to the third quarter of 2012. The main drivers of this variance consist of:


 
--  Wholesale's gross profit decreased by $176-million to $123-million for
    the third quarter of 2013, compared to the third quarter of 2012
    primarily as a result of weaker sales prices for urea, phosphate and
    potash coupled with lower sales volumes of urea and phosphate due to
    production outages and weaker market conditions; and 
--  Retail's gross profit increased by $73-million to $511-million for the
    third quarter of 2013, compared to the third quarter of 2012 as a result
    of increased crop protection sales volumes due to a return to regular
    seasonal demand compared to last year's early spring season which
    shifted sales traditionally earned in the third quarter into the second
    quarter of 2012. In addition, there was an increase in gross profit on
    application services which is consistent with increased volumes in crop
    nutrients and crop protection products. 

Expenses

Expenses decreased $38-million for the third quarter of 2013 compared to the third quarter of 2012. This difference is primarily a result of the following items:


 
--  A $74-million favorable change in share-based payments, with a $21-
    million share-based payments recovery in the current quarter compared to
    a $53-million charge in the same period last year (see section "Other"
    for further discussion); and 
--  A $30-million decrease in other expenses included a favorable change
    related to environmental remediation and asset retirement obligation
    expenses incurred in the third quarter of 2012 of $49-million with no
    corresponding charge in the third quarter of 2013. This was partially
    reduced by a $12-million unfavorable change in other expenses caused by
    the recognition of an impairment in our investment in Hanfeng Evergreen
    Inc. ("Hanfeng"). 

The above decreases were partially offset by:


 
--  An increase in Retail selling expenses of $48-million which was driven
    by increased sales activity this quarter and costs associated with
    Retail locations acquired in 2012 (see section "Retail" for further
    discussion); and 
--  Decreased earnings of $32-million from Wholesale's equity accounted
    investment in Argentina (see section "Wholesale" for further
    discussion). 

The following table is a summary of our other expenses (income) for the third quarter and first nine months of 2013 and 2012, respectively.


 
----------------------------------------------------------------------------
                                        Three months ended Nine months ended
                                           September 30,     September 30,  
(millions of U.S. dollars)                 2013     2012     2013     2012  
----------------------------------------------------------------------------
Realized loss (gain) on derivative                                          
 financial instruments                      12       2       (2)       26   
----------------------------------------------------------------------------
Unrealized gain on derivative financial                                     
 instruments                               (10)     (3)      (14)     (17)  
----------------------------------------------------------------------------
Interest income                            (20)     (30)     (51)     (65)  
----------------------------------------------------------------------------
Foreign exchange loss                       1        3        27       14   
----------------------------------------------------------------------------
Environmental remediation and asset                                         
 retirement obligations                     1        66       5        78   
----------------------------------------------------------------------------
Bad debt (recovery) expense                (6)       6        20       30   
----------------------------------------------------------------------------
Potash profit and capital tax               3        -        15       13   
----------------------------------------------------------------------------
Other                                       35       2        45       2    
----------------------------------------------------------
------------------
                                            16       46       45       81   
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Effective Tax Rate

The effective tax rate was 25 percent for the third quarter compared to 22 percent for the same period last year due to an increase in income earned in higher taxed jurisdictions. The effective tax rate was 27 percent for the first nine months of 2013 and remained unchanged as compared to the same period last year.

Retail

Retail reported third quarter sales of $2.1-billion, an increase of 15 percent compared to sales of $1.8-billion reported in the same quarter last year. Gross profit was $511-million in the third quarter of 2013, a $73-million increase from last year's third quarter. Similarly, Retail reported EBITDA of $147-million, up from $121-million reported in the third quarter of last year. Stronger year-over-year sales and gross profit results were evident across all products and services, despite lower average nutrient prices and margins this year. This was due to a more normal summer growing season in the U.S. relative to the drought conditions experienced in the same period last year and incremental sales from recently acquired Retail locations.

Crop nutrient sales were $654-million this quarter, compared to $634-million in the third quarter of 2012. A 14 percent increase in nutrient sales volumes in the quarter were largely offset by lower nutrient prices. Gross profit for crop nutrients was $116-million this quarter, an increase of $5-million compared to the $111-million reported in the third quarter of 2012. Total crop nutrient margins as a percentage of sales were 17.7 percent in the third quarter of 2013, just slightly higher than the 17.5 percent reported in the same quarter last year. However, per tonne nutrient margins were down 9 percent from the third quarter of 2012.

Crop protection sales were $1.1-billion in the third quarter of 2013, compared to $872-million in sales in the same period last year. The increase was driven primarily by greater sales volumes of fungicides and herbicides. Gross profit this quarter was $248-million, an increase of $46-million over the $202-million reported in the third quarter of 2012. This is attributable to increased volumes and a favorable product mix. Total crop protection margins as a percentage of sales were 23 percent this quarter, up slightly from the same period last year. 2013 year-to-date crop protection margins as a percentage of sales were 21 percent, on par with the same period last year.

Seed sales were $69-million in the third quarter of 2013, up 23 percent from the $56-million reported in the third quarter of last year. In North America, higher seed sales were partly due to the later spring planting season, which shifted some sales volumes into the third quarter. This particularly affected soybean sales volumes, as the delayed spring wheat harvest subsequently delayed the double crop planting of soybeans. Gross profit was $30-million this quarter, up from the $28-million reported last year. Seed margins as a percentage of sales were 43 percent in the third quarter of 2013, marginally lower from the same period for 2012. Year-to-date in 2013, seed sales are up 7 percent and margins are slightly higher at 18 percent than the same period last year.

Sales of merchandise in the third quarter of 2013 were $122-million, compared to $105-million in the same period last year. Gross profit for this product line was $19-million this quarter, compared to $17-million reported in the third quarter of 2012. The improvement is related to additional sales volumes in animal health and other livestock-related products in Australia.

Services and other sales were $205-million this quarter, compared to the $167-million reported in the third quarter of 2012. Gross profit was $98-million in the third quarter of 2013, compared to $80-million for the same period last year. These increases relate to a shift in earnings from the second quarter to the third quarter in North America and are consistent with the higher North American nutrient and crop protection sales volumes.

Selling expenses as a percentage of sales was 19.7 percent in the third quarter of 2013 which is down marginally from the 20 percent reported in the same period last year. Retail selling expenses were $416-million for the third quarter, compared to $368-million in the same period last year. The majority of this variance was due to increased costs resulting from recent acquisitions as well as an increase in variable people costs consistent with the higher sales and earnings in the third quarter.

Wholesale

Wholesale's 2013 third quarter sales were $752-million, down $234-million from the same quarter last year. Gross profit was $123-million this quarter, compared to $299-million in the third quarter of 2012. Wholesale reported EBITDA of $130-million in the third quarter of 2013, down from the $348-million reported in the same period last year. Wholesale's Adjusted EBITDA(1) was $143-million this quarter, compared to $376-million reported in the same period last year. Wholesale EBIT this quarter was $198-million lower than in the third quarter of last year. Wholesale's results this quarter were impacted by lower realized sales prices across all products, as well as lower phosphate and nitrogen sales volumes due to outages at our Carseland and Redwater nitrogen facilities in addition to slow market demand.

(1)Adjusted EBITDA is defined as earnings (loss) before finance costs, income taxes, depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures.

Nitrogen gross profit in the third quarter of 2013 was $76-million, compared to $215-million in the same quarter last year. Nitrogen sales volumes were 636,000 tonnes in the third quarter of 2013, down 183,000 tonnes from the same period last year, partly due to outages at our Carseland and Redwater nitrogen facilities. Realized sales prices for all nitrogen products were lower than the third quarter of last year, with urea realized sales prices down 23 percent, or $133 per tonne year-over-year. Nitrogen cost of product sold was $331 per tonne this quarter, compared to $255 per tonne reported in the third quarter of 2012. The increase was primarily due to expenses associated with the outages at our Carseland and Redwater facilities, which equated to approximately $35-million, and higher natural gas costs. Our average nitrogen gross margins were $119 per tonne this quarter, compared to $262 per tonne in the same period last year.

Agrium's average natural gas cost in cost of product sold was $2.78/MMBtu this quarter ($3.16/MMBtu including the impact of realized losses on natural gas derivatives), compared to $2.46/MMBtu for the same period in 2012 ($2.72/MMBtu including the impact of realized losses on natural g as derivatives). Hedging gains or losses are included in other expenses and not cost of product sold, thus are not part of the calculation of gross profit. The U.S. benchmark (NYMEX) natural gas price for the third quarter of 2013 was $3.60/MMBtu, compared to $2.81/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.91/MMBtu discount to NYMEX in the third quarter of 2013, compared to the $0.62/MMBtu discount in the third quarter of 2012.

Potash gross profit for the third quarter of 2013 was $27-million, compared to $23-million reported in the same quarter last year. The increase was primarily driven by higher sales volumes and lower cost of production, partly offset by significantly lower sales prices. The increase in volumes and lower cost of production was a result of a return to a traditional two week turnaround at our Vanscoy facility in the third quarter, compared to last year's eight week planned turnaround associated with our brownfield expansion project. International sales volumes were 84,000 tonnes this quarter, up from the 43,000 tonnes reported in the third quarter of last year, but below the previous three year average of 174,000 tonnes (2009-2011 period). Domestic sales volumes were 181,000 tonnes this quarter, compared to 117,000 tonnes in the third quarter of 2012 and above the previous three year average of 160,000 tonnes (2009-2011 period). The higher sales volumes were largely offset by a 31 percent reduction in realized sales prices compared to the prior year. Potash cost of product sold was $246 per tonne this quarter compared to $363 per tonne reported in the third quarter of 2012, due to the shorter turnaround this year. Gross margin was $103 per tonne in the third quarter of 2013, compared to the $140 per tonne in the same quarter of 2012.

Phosphate gross profit was $7-million in the third quarter of 2013, compared to $47-million in the same quarter last year. The decrease resulted from a combination of lower realized sales prices, higher cost of production and lower sales volumes due to weaker market conditions. Phosphate sales volumes this quarter were 192,000 tonnes, a 26 percent decline from the third quarter of last year, due to a slow start to the fall season. Realized phosphate sales prices were $633 per tonne this quarter, a $70 per tonne decrease from the $703 per tonne realized in the same quarter last year. Phosphate cost of product sold was $595 per tonne in the third quarter of 2013, an increase from $519 per tonne in the same period last year. The increase was primarily a result of higher rock costs associated with the switch to imported rock, as well as higher ammonia costs. Gross margin was $38 per tonne in the third quarter of 2013, compared to $184 per tonne in the same period last year.

Gross profit from ammonium sulfate and other was $12-million this quarter, a reduction of $5-million from the same period last year as a result of lower realized sales prices.

Product purchased for resale gross profit was $1-million this quarter, compared to a loss of $3-million in the third quarter of 2012.

Wholesale expenses in the third quarter of 2013 were $32-million, compared to $10-million in the third quarter of 2012. The higher net expense was primarily due to lower earnings from our equity investment in Argentina, as the Profertil S.A. ("Profertil") facility faced lower global urea prices and an increase in gas supply interruptions this year. The facility experienced 57 days of downtime this quarter compared to 24 days in the third quarter of last year, which reduced production and tonnes available for sale as well as increased costs per tonne.

Advanced Technologies

AAT reported a quarterly gross profit of $12-million in the third quarter of 2013, a decrease of $16-million from the $28-million reported in the same period last year. EBITDA was a loss of $5-million in the third quarter, a $9-million decrease from the same period last year, including Courtright coating facility closure costs amounting to $5-million recorded in the third quarter of 2012. The lower year-over-year results were primarily due to weak ESN demand as a result of weak grower demand related to volatility in the agricultural and crop input markets and a later fall application season than last year.

Other

EBITDA for our Other non-operating business unit for the third quarter of 2013 was a loss of $28-million, compared to a loss of $157-million for the third quarter of 2012. The favorable change was primarily driven by:


 
--  A $74-million favorable change in share-based payments, where there was
    a $21-million recovery in the third quarter of 2013 compared to a $53-
    million charge in the third quarter of 2012. This was largely caused by
    a depreciation of our share price during the third quarter of 2013
    compared to an appreciation of our share price during the third quarter
    of 2012; 
--  A $49-million favorable change in environmental remediation and asset
    retirement obligation expenses incurred in the third quarter of 2012
    with no corresponding charge in the third quarter of 2013; and 
--  A $21-million increase in gross profit for the three months at September
    30, 2013 compared to the three months at September 30, 2012 which
    reflected less inter-segment inventory held in our Retail business unit
    not yet sold to external customers. 

The above factors were partially offset by a $12-million impairment of our investment in Hanfeng.

FINANCIAL CONDITION

The following are changes to working capital on our Consolidated Balance Sheets in the nine-month period ended September 30, 2013 compared to December 31, 2012.


 
----------------------------------------------------------------------------
                                                                            
(millions of U.S. dollars, except as  September 30,   December 31,          
 noted)                                        2013           2012  $ Change
----------------------------------------------------------------------------
Current assets                                                              
  Cash and cash equivalents                     255            658     (403)
----------------------------------------------------------------------------
  Accounts receivable                         2,982          2,224       758
----------------------------------------------------------------------------
  Income taxes receivable                        68             32        36
----------------------------------------------------------------------------
  Inventories                                 2,845          3,094     (249)
----------------------------------------------------------------------------
  Advance on acquisition of Viterra             764          1,792   (1,028)
   Inc.                                                                     
----------------------------------------------------------------------------
  Prepaid expenses and deposits                 185            740     (555)
----------------------------------------------------------------------------
  Other current assets                          103              -       103
----------------------------------------------------------------------------
Current liabilities                                                         
  Short-term debt                               792          1,314     (522)
----------------------------------------------------------------------------
  Accounts payable                            2,943          3,479     (536)
----------------------------------------------------------------------------
  Income taxes payable                            -            137     (137)
----------------------------------------------------------------------------
  Current portion of long-term debt              52            518     (466)
----------------------------------------------------------------------------
  Current portion of othe
r                       76            108      (32)
   provisions                                                               
----------------------------------------------------------------------------
Working capital                               3,339          2,984       355
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
------------------------------------------------------------------------
                                                                        
(millions of U.S. dollars, except as           Explanation of the change
 noted)                               % Change                in balance
------------------------------------------------------------------------
Current assets                                                          
  Cash and cash equivalents              (61%)  See discussion under the
                                                  section "Liquidity and
                                                      Capital Resources"
------------------------------------------------------------------------
  Accounts receivable                      34%    Increased Retail sales
                                                  activities resulted in
                                                 higher Retail trade and
                                               vendor rebates receivable
                                               partially offset by lower
                                                   Wholesale receivables
                                                    resulting from lower
                                                                   sales
------------------------------------------------------------------------
  Income taxes receivable                 113%         Increased refunds
                                                  expected in Canada and
                                                                the U.S.
------------------------------------------------------------------------
  Inventories                             (8%)  Decreased crop nutrients
                                                  and seed attributed to
                                                   the domestic seasonal
                                                       sales cycle where
                                                 inventory is highest at
                                                  year end and the third
                                                 quarter is lowest after
                                                   seasonal sell-through
------------------------------------------------------------------------
  Advance on acquisition of Viterra      (57%)    Glencore International
   Inc.                                                 plc ("Glencore")
                                                   completed the sale of
                                                          Viterra Inc.'s
                                                    ("Viterra") minority
                                                interest in the Medicine
                                                Hat nitrogen facility to
                                                  CF Industries Holdings
                                                   Inc., the proceeds of
                                                    which were repaid to
                                                    Agrium to reduce the
                                                                 advance
------------------------------------------------------------------------
  Prepaid expenses and deposits          (75%)       Drawdown of prepaid
                                               inventory where typically
                                                      Retail prepays for
                                                 product at year end and
                                                     takes possession of
                                                inventory throughout the
                                                 year coupled with lower
                                                  fertilizer prepayments
                                                during the year as lower
                                                market prices negate the
                                                  need for prepayment at
                                                            fixed prices
------------------------------------------------------------------------
  Other current assets                     N/A    Increase in marketable
                                                              securities
------------------------------------------------------------------------
Current liabilities                                                     
  Short-term debt                        (40%)   Repayment of short-term
                                                    multi-jurisdictional
                                               facility partially offset
                                                       by draws used for
                                                              operations
------------------------------------------------------------------------
  Accounts payable                       (15%)      Drawdown of customer
                                                  prepayments during the
                                                   year, where typically
                                                    customers enter into
                                                prepay agreements during
                                                the fourth quarter ahead
                                               of the spring application
                                                     season, offset by a
                                                combination of increased
                                                   trade payables due to
                                                      timing and accrued
                                                      liabilities due to
                                                        capital projects
------------------------------------------------------------------------
  Income taxes payable                  (100%) Final payment of the 2012
                                                  Canadian taxes made in
                                               the first quarter of 2013
------------------------------------------------------------------------
  Current portion of long-term debt      (90%)     Repayment of floating
                                                   rate bank loans along
                                                with South American debt
                                               that matured in the first
                                                 half of 2013, partially
                                                               offset by
                                                  reclassifications from
                                                          long-term debt
------------------------------------------------------------------------
  Current portion of other               (30%) Legacy site environmental
   provisions                                      remediation liability
                                                    reclassified to non-
                                                current based on updated
                                                    spending projections
------------------------------------------------------------------------
Working capital                            12%                          
------------------------------------------------------------------------
------------------------------------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES

Summary of Consolidated Statements of Cash Flows

Below is a summary of our cash provided by or used in operating, investing, and financing activities as reflected in the Consolidated Statements of Cash Flows:


 
----------------------------------------------------------------------------
                                                      Nine months ended     
                                                        September 30,       
(millions of U.S. dollars)                           2013     2012   Change 
----------------------------------------------------------------------------
Cash provided by operating activities                 543    1,097     (554)
----------------------------------------------------------------------------
Cash used in investing activities                    (454)    (922)     468 
----------------------------------------------------------------------------
Cash (used in) provided by financing activities      (470)     300     (770)
----------------------------------------------------------------------------
Effect of exchange rate changes on cash and cash                            
 equivalents                                          (22)      50      (72)
----------------------------------------------------------------------------
(Decrease) increase in cash and cash equivalents     (403)     525     (928)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The sources and uses of cash for the nine months ended September 30, 2013 compared to the nine months ended September 30, 2012 are summarized below:


 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities - Drivers behind the $554-million     
 source of cash decrease                                                    
----------------------------------------------------------------------------
Use of cash    $180-million decrease in consolidated net earnings.          
                                                                            
               $181-million decrease in non-cash items, resulting primarily 
               from a change of $161-million in share-based payments coupled
               with an increase in deferred income taxes recovery of $40-   
               million. This was offset by an increase in depreciation and  
               amortization of $33-million and a decrease in earnings from  
               associates and joint ventures of $30-million during the first
               nine months of 2013.                                         
                                                                            
               $217-million increase in non-cash working capital. The       
               increase was primarily driven by a greater decrease in       
               accounts payable offset by a lower increase in accounts      
               receivable and greater decrease in prepaid expenses and      
               deposits during the first nine months of 2013 versus the     
               first nine months of 2012. The large decrease in payables for
               the year is due to the high customer prepayments payable and 
               high capital projects accruals outstanding at the beginning  
               of the year.                                                 
----------------------------------------------------------------------------
Cash used in investing activities - Drivers behind the $468-million use of  
cash decrease                                                               
----------------------------------------------------------------------------
Source of cash $932-million increase provided from the repayment of the     
               advance to Glencore.                                         
                                                                            
               $21-million decrease for acquisitions due to fewer Retail    
               tuck-in acquisitions occurring during the first nine months  
               of 2013 versus the first nine months of 2012.                
                                                                            
               $65-million increase for proceeds received on disposal of    
               investments.                                                 
----------------------------------------------------------------------------
Use of cash    $407-million increase in capital expenditures primarily      
               related to the Vanscoy potash expansion project.             
                                                                            
               $141-million increase in investments purchased.              
----------------------------------------------------------------------------
Cash (used in) provided by financing activities - Drivers behind the $770-  
million use of cash increase                                                
----------------------------------------------------------------------------
Source of cash On May 28, 2013, we issued $500-million of 3.5 percent       
               debentures due June 1, 2023 and $500-million of 4.9 percent  
               debentures due June 1, 2043.                                 
----------------------------------------------------------------------------
Use of cash    $886-million due to the repayment of $491-million in short-  
               term debt during the first nine months of 2013 compared to   
               cash provided by short-term debt of $395-million during the  
               first nine months of 2012.                                   
                                                                            
               $520-million repayment of long-term debt during the first    
               nine months of 2013.                                         
                                                                            
               $109-million increase in dividends paid during the first nine
               months of 2013 resulting from increasing the 2013 first      
               quarter dividend to $0.50 per share from $0.225 per share in 
               2012. In addition, Agrium announced the declaration and      
               payment of dividends on a quarterly basis starting in 2013,  
               which resulted in doubling the cash outflow for the period.  
                                                                            
               $233-million increase for the purchase and cancellation of   
               common shares under our normal course issuer bid during the  
               first nine months of 2013.                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Capital Expenditures                                                        
                                                                            
----------------------------------------------------------------------------
                                                           Nine months ended
                                                             September 30,  
(millions of U.S. dollars)                                     2013     2012
----------------------------------------------------------------------------
Investing capital                                               856      475
----------------------------------------------------------------------------
Sustaining capital                                              391      365
----------------------------------------------------------------------------
Total                                                         1,247      840
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Our investing capital expenditures increased in the first nine months of    
 2013 compared to the first nine months of 2012 due to increased activity on
 the Vanscoy potash expansion project.                                      
Short-term Debt                                                             
                                                                            
Our short-term debt at September 30, 2013 is summarized as follows:         
                                                                            
----------------------------------------------------------------------------
(millions of U.S. dollars)                     Total  Unutilized    Utilized
----------------------------------------------------------------------------
                                                                            
------------------
----------------------------------------------------------
Multi-jurisdictional facility expiring                                      
 2017                                          2,500       1,960         540
----------------------------------------------------------------------------
European facilities expiring 2013                353         159         194
----------------------------------------------------------------------------
South American facilities expiring 2013                                     
 - 2014                                          140          82          58
----------------------------------------------------------------------------
                                               2,993       2,201         792
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding letters of credit                                116            
----------------------------------------------------------------------------
Remaining capacity available                               2,085            
----------------------------------------------------------------------------
----------------------------------------------------------------------------

OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares at October 31, 2013 was approximately 144.5 million. At October 31, 2013, the number of shares issuable pursuant to stock options outstanding (issuable assuming full exercise, where each option granted can be exercised for one common share) was approximately nil.


 
SELECTED QUARTERLY INFORMATION (i)                                          
                                                                            
----------------------------------------------------------------------------
(millions of U.S. dollars,    2013  2013  2013  2012  2012  2012  2012  2011
except per share amounts)       Q3    Q2    Q1    Q4    Q3    Q2    Q1    Q4
----------------------------------------------------------------------------
Sales                        2,869 7,016 3,224 3,157 2,832 6,772 3,571 3,177
----------------------------------------------------------------------------
Gross profit                   641 1,722   716   987   739 1,851   785 1,045
----------------------------------------------------------------------------
Net earnings from               76   747   141   354   129   860   155   327
continuing operations                                                       
----------------------------------------------------------------------------
Net earnings                    76   747   141   354   129   860   155   193
----------------------------------------------------------------------------
Earnings per share from                                                     
continuing operations                                                       
----------------------------------------------------------------------------
 -basic                       0.52  5.02  0.94  2.34  0.80  5.44  0.97  2.05
----------------------------------------------------------------------------
 -diluted                     0.52  5.02  0.94  2.34  0.80  5.44  0.97  2.04
----------------------------------------------------------------------------
Earnings per share                                                          
----------------------------------------------------------------------------
 -basic                       0.52  5.02  0.94  2.34  0.80  5.44  0.97  1.20
----------------------------------------------------------------------------
 -diluted                     0.52  5.02  0.94  2.34  0.80  5.44  0.97  1.20
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(i) 2012 results have been restated to reflect the adoption of IFRS 11 Joint Arrangements requiring equity accounting for joint ventures. 2011 results have not been restated.

The agricultural products business is seasonal in nature. Consequently, comparisons made on a year-over-year basis are more appropriate than quarter-over-quarter. Crop input sales are primarily concentrated in the spring and fall crop input application seasons, which are in the second quarter and fourth quarter. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections generally occur after the application season is complete.

BUSINESS ACQUISITION

We acquired certain agri-products assets of Viterra from Glencore on October 1, 2013. The acquired assets include over 200 retail farm centers in Canada and Australia. We have engaged an independent valuation firm to assist us in determining the fair value of the assets acquired, liabilities assumed, including contingent liabilities and provisions, and related deferred income tax impacts. The valuation is in progress; however a provisional purchase price allocation is not yet available due to the inherent complexity of the valuations and the short time frame following the closing date. We expect the excess of the estimated fair value of the net assets acquired over the purchase price will result in a purchase gain in the three months ended December 31, 2013. Refer to note 4 of the Summarized Notes to the Consolidated Financial Statements for further information.

NORMAL COURSE ISSUER BID

On May 14, 2013, the Toronto Stock Exchange ("TSX") accepted Agrium's notice of intention to make a normal course issuer bid ("NCIB") whereby Agrium may purchase up to 7,472,587 common shares on the TSX and New York Stock Exchange during the period from May 21, 2013 to May 20, 2014 with a daily purchase limit of 133,301 common shares on the TSX. During the nine months ended September 30, 2013, we purchased approximately 2.7 million shares at an average share price of $87 for total consideration of approximately $233-million under our NCIB. From October 1, 2013 to October 31, 2013, we purchased approximately 2.2 million shares at an average share price of $85 for total consideration of approximately $191-million. Refer to note 10 of the Summarized Notes to the Consolidated Financial Statements for further information.

ADDITIONAL AND NON-IFRS FINANCIAL MEASURES

In the discussion of our performance for the quarter, in addition to the primary measures of earnings and earnings per share reported in accordance with IFRS, we make reference to EBITDA (earnings (loss) before finance costs, income taxes, depreciation and amortization) and Adjusted EBITDA (earnings (loss) before finance costs, income taxes, depreciation and amortization and before finance costs, income taxes, depreciation and amortization of joint ventures). We consider EBITDA and Adjusted EBITDA to be useful measures of performance because income tax jurisdictions and business segments are not synonymous and we believe that allocation of income tax charges distorts the comparability of historical performance for the different business segments. Similarly, financing and related interest charges cannot be allocated to all business units on a basis that is meaningful for comparison with other companies.

EBITDA and Adjusted EBITDA are not recognized measures under IFRS, and our method of calculation may not be comparable to other companies. In addition, these measures should not be used as alternatives to earnings before finance costs and income taxes ("EBIT") as determined in accordance with IFRS.

The following table is a reconciliation of EBITDA and Adjusted EBITDA to EBIT:


 
                                                                            
----------------------------------------------------------------------------
                                         Three months ended                 
                                         September 30, 2013                 
(millions of U.S.                                                           
 dollars)                  Retail Who
lesale      AAT     Other  Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA               147       143       (5)      (28)          257
----------------------------------------------------------------------------
Equity accounted                                                            
joint ventures:                                                             
Finance costs                   -         7        -         -             7
and income                                                                  
taxes                                                                       
----------------------------------------------------------------------------
Depreciation and                -         6        -         -             6
amortization                                                                
----------------------------------------------------------------------------
EBITDA                        147       130       (5)      (28)          244
----------------------------------------------------------------------------
Depreciation and               56        39        8         5           108
amortization                                                                
----------------------------------------------------------------------------
EBIT                           91        91      (13)      (33)          136
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
----------------------------------------------------------------------------
                                         Three months ended                 
                                         September 30, 2012                 
(millions of U.S.                                                           
 dollars)                  Retail Wholesale      AAT     Other  Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA               121       376        4      (157)          344
----------------------------------------------------------------------------
Equity accounted                                                            
joint ventures:                                                             
Finance costs                   -        22        -         -            22
and income                                                                  
taxes                                                                       
----------------------------------------------------------------------------
Depreciation and                -         6        -         -             6
amortization                                                                
----------------------------------------------------------------------------
EBITDA                        121       348        4      (157)          316
----------------------------------------------------------------------------
Depreciation and               52        59        7         2           120
amortization                                                                
----------------------------------------------------------------------------
EBIT                           69       289       (3)     (159)          196
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                         Nine months ended                  
                                        September 30, 2013                  
(millions of U.S.                                                           
 dollars)                 Retail Wholesale       AAT     Other  Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA              791     1,052        25       (53)        1,815
----------------------------------------------------------------------------
Equity accounted                                                            
joint ventures:                                                             
Finance costs                  -        21         -         -            21
and income                                                                  
taxes                                                                       
----------------------------------------------------------------------------
Depreciation and               -         9         -         -             9
amortization                                                                
----------------------------------------------------------------------------
EBITDA                       791     1,022        25       (53)        1,785
----------------------------------------------------------------------------
Depreciation and             166       151        22        11           350
amortization                                                                
----------------------------------------------------------------------------
EBIT                         625       871         3       (64)        1,435
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
----------------------------------------------------------------------------
                                         Nine months ended                  
                                        September 30, 2012                  
(millions of U.S.                                                           
 dollars)                 Retail Wholesale       AAT     Other  Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA              827     1,424        26      (261)        2,016
----------------------------------------------------------------------------
Equity accounted                                                            
joint ventures:                                                             
Finance costs                  -        25         -         -            25
and income                                                                  
taxes                                                                       
----------------------------------------------------------------------------
Depreciation and               -        11         -         -            11
amortization                                                                
----------------------------------------------------------------------------
EBITDA                       827     1,388        26      (261)        1,980
----------------------------------------------------------------------------
Depreciation and             145       142        20        10           317
amortization                                                                
----------------------------------------------------------------------------
EBIT                         682     1,246         6      (271)        1,663
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Supplemental Information 5, Selected Financial Measures, also provides certain ratios that are not recognized measures under IFRS and our method of calculation may not be comparable to that of other companies. Ratio definitions are provided in Supplemental Information 6, Accompanying Notes to Supplemental Information. Return on operating capital employed and return on capital employed presented in Supplemental Information 5 are measures classified as additional IFRS financial measure s, where they reflect Consolidated Agrium. We consider these measures to provide useful information to both management and investors in measuring our financial performance and financial condition.

CRITICAL ACCOUNTING JUDGMENTS AND ESTIMATES

We prepare our financial statements in accordance with IFRS, which requires us to make assumptions and estimates about future events and apply significant judgments. We base our assumptions, estimates and judgments on our historical experience, current trends and all available information that we believe is relevant at the time we prepare the financial statements. However, future events and their effects cannot be determined with certainty. Accordingly, as confirming events occur, actual results could ultimately differ from our assumptions and estimates. Such differences could be material. For further information on the Company's critical accounting judgments and estimates, refer to the section "Critical Accounting Judgments and Estimates" of our 2012 annual Management's Discussion and Analysis, which is contained in our 2012 Annual Report. Since the date of our 2012 annual Management's Discussion and Analysis, there have not been any significant changes to our critical accounting judgments and estimates.

CHANGES IN ACCOUNTING POLICIES

Effective January 1, 2013, Agrium adopted IFRS 11 Joint Arrangements whereby the classification and accounting of our investment in Profertil and other joint arrangements previously accounted for using the proportionate consolidation method are accounted for using the equity method. 2012 figures have been restated and additional information has been provided in the Supplemental Information tables to display the results of our joint ventures. Adjusted EBITDA has been added to show our results before finance costs, income taxes, depreciation and amortization of our joint ventures. Refer to note 3 of the Summarized Notes to the Consolidated Financial Statements for further information.

For information regarding changes in accounting policies, refer to the section "Accounting Standards and Policy Changes Not Yet Implemented" of our 2012 annual Management's Discussion and Analysis, which is contained in our 2012 Annual Report.

BUSINESS RISKS

The information presented on Enterprise Risk Management and Key Business Risks on pages 74 - 77 in our 2012 Annual Report has not changed materially since December 31, 2012.

CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

PUBLIC SECURITIES FILINGS

Additional information about our company, including our 2012 Annual Information Form is filed with the Canadian securities regulatory authorities through SEDAR at www.sedar.com and with the U.S. securities regulatory authorities through EDGAR at www.sec.gov.

OUTLOOK, KEY RISKS AND UNCERTAINTIES

Global production of almost all major field crops is expected to increase in 2013/14, driven primarily by improved growing conditions in the U.S. and former Soviet Union. While official revisions to U.S. corn and soybean yields were not made in October due to the U.S. government shut-down, reports from the field indicate that yields are at or above expectations. In Western Canada, yields of almost all of the major crops are expected to break records this year. Stronger yields help offset the financial impact from lower crop prices and also increased nutrient removal, which are expected to support strong North American application rates in the 2013/14 fertilizer year. Crop nutrient costs are also more affordable than they have been over the recent past.

Strength in demand for crop protection products is expected to continue to be strong in the fourth quarter and into next spring. Growth in demand for crop protection products continues to be supported by increased use of alternative active ingredients to glyphosate in order to counter increased weed resistance to glyphosate, as well as the continued trend toward greater use of fungicides. As harvest wraps up, growers are evaluating 2013 yield results in order to make decisions on 2014 seed varieties.

Nitrogen prices have been relatively steady over the past couple of months at levels close to Chinese production costs. Nitrogen prices receive support given the Chinese urea low tax export season ended October 31, 2013 and Chinese export volumes in November and December are expected to be lower than they were in 2012. Indian urea import demand has been significantly higher than 2012 levels, driven by a favorable monsoon season. U.S. offshore urea imports were approximately 40 percent behind 2012 levels in the third quarter of 2013 while U.S. corn area is expected to decline in 2014, which may result in a 2 percent to 4 percent reduction in nitrogen demand this year. The net impact of these factors is an expectation for a higher pace of U.S. urea imports in the coming months to meet short-term demand.

The potash market has been impacted by significant market uncertainty throughout the third quarter, leading to reduced prices and cautious purchasing behavior that has extended into the fourth quarter in most international markets. Several factors contributed to the uncertainty, including the dissolution of the Belarusian Potash Company, the delay in second half Chinese supply agreements, and the timing of deliveries on Indian contract purchases. Global potash fundamentals remain challenging entering the fourth quarter of 2013 on continued elevated inventories and the expectation that the pace of Brazilian potash imports may decline given an expected reduction in the size of the second corn crop which is planted in January. The outlook for U.S. demand in the fourth quarter of 2013 is more positive as fall potash application rates are expected to be solid.

Phosphate prices declined throughout the third quarter of 2013, as buyers purchased product on a just-in-time basis and global market conditions are likely to remain under pressure in the fourth quarter. Indian demand has been a major source of uncertainty, as the devaluation of the Indian rupee and delayed government subsidy payments have been barriers to imports. While Brazilian DAP/MAP imports set a full-year record by the end of September, the pace of imports is expected to slow in the fourth quarter. However, U.S. phosphate application rates are expected to be supported by high crop yields and affordable nutrient prices.

Forward-Looking Statements

Certain statements and other information included in this MD&A constitute "forward-looking information" and "financial outlook" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this MD&A, other than those relating to historical information or current conditions, are forward-looking statements, including, but not limited to, statements as to management's expectations with respect to: future crop and crop input volumes, demand, margins, prices and sales; business and financial prospects; dividends and other plans, strategies, objectives and expectations, including with respect to future operations of Agrium and proposed acquisitions and divestitures and the growth and stability of our earnings. These forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements.

All of the forward-looking statements are qualified by the assumptions that are stated or inherent in such forward-looking statements, including the assumptions listed below. Although Agrium believes that these assumptions are reasonable, this list is not exhaustive of the factors that may a ffect any of the forward-looking statements and the reader should not place an undue reliance on these assumptions and such forward-looking statements. The key assumptions that have been made in connection with the forward-looking statements include Agrium's ability to successfully integrate and realize the anticipated benefits of its already completed and future acquisitions, including the recently completed acquisition of the Agri-products business of Viterra.

Events or circumstances that could cause actual results to differ materially from those in the forward-looking statements include, but are not limited to: general economic, market and business conditions, weather conditions including impacts from regional flooding and/or drought conditions; crop prices; the supply and demand and price levels for our major products; governmental and regulatory requirements and actions by governmental authorities, including changes in government policy, government ownership requirements, changes in environmental, tax and other laws or regulations and the interpretation thereof, and political risks, including civil unrest, actions by armed groups or conflict, as well as counterparty and sovereign risk; and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States. There is a risk that the Egyptian Misr Fertilizer Production Company nitrogen facility in Egypt may not be allowed to proceed with the completion of the two new facilities. Additionally, there are risks associated with Agrium's acquisition of AWB, including litigation risk resulting from AWB having been named in litigation commenced by the Iraqi Government relating to the United Nations Oil-For-Food Programme. Furthermore, there are risks associated with our acquisition of the Agri-products business of Viterra, including: timing and costs of the associated integration of the retained Viterra business, the size and timing of expected synergies could be less favorable than anticipated; disruption from the acquisition making it more difficult to maintain relationships with customers, employees and suppliers; our efforts to integrate Viterra's business into our existing business could result in the disruption of our ongoing business and other risk factors detailed from time to time in Agrium reports filed with the Canadian securities regulators and the Securities and Exchange Commission in the United States.

The purpose of our guidance for the fourth quarter of 2013 included herein is to assist readers in understanding our expected and targeted financial results and this information may not be appropriate for other purposes.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this MD&A as a result of new information or future events, except as may be required under applicable U.S. federal securities laws or applicable Canadian securities legislation.

OTHER

Agrium Inc. is a major Retail supplier of agricultural products and services in North America, South America and Australia and a leading global Wholesale producer and marketer of all three major agricultural nutrients and the premier supplier of specialty fertilizers in North America through our Advanced Technologies business unit. Agrium's strategy is to provide the crop inputs and services needed to feed a growing world. We focus on maximizing shareholder returns by driving continuous improvements to our base businesses, pursuing value-added growth opportunities across the crop input value chain and returning capital to shareholders.

A WEBSITE SIMULCAST of the 2013 3rd Quarter Conference Call will be available in a listen-only mode beginning November 6th, 2013 at 9:30 a.m. MST (11:30 a.m. EST). Please visit the following website: www.agrium.com.

AGRIUM INC.

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE THREE AND NINE MONTHS ENDED

September 30, 2013


 
                                AGRIUM INC.                                 
                   Consolidated Statements of Operations                    
            (Millions of U.S. dollars, except per share amounts)            
                                (Unaudited)                                 
                                                                            
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                         2013      2012      2013      2012 
                                               Restated            Restated 
                                                (note 3)            (note 3)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Sales                                   2,869     2,832    13,109    13,175 
----------------------------------------------------------------------------
Cost of product sold                    2,228     2,093    10,030     9,800 
----------------------------------------------------------------------------
Gross profit                              641       739     3,079     3,375 
----------------------------------------------------------------------------
Expenses                                                                    
----------------------------------------------------------------------------
 Selling                                  436       389     1,404     1,298 
----------------------------------------------------------------------------
 General and administrative                64       143       234       402 
----------------------------------------------------------------------------
 Earnings from associates and joint                                         
  ventures                                (11)      (35)      (39)      (69)
----------------------------------------------------------------------------
 Other expenses (note 5)                   16        46        45        81 
----------------------------------------------------------------------------
Earnings before finance costs and                                           
 income taxes                             136       196     1,435     1,663 
----------------------------------------------------------------------------
 Finance costs related to long-term                                         
  debt                                     26        23        69        67 
----------------------------------------------------------------------------
 Other finance costs                        9         7        48        26 
----------------------------------------------------------------------------
Earnings before income taxes              101       166     1,318     1,570 
----------------------------------------------------------------------------
 Income taxes                              25        37       354       426 
----------------------------------------------------------------------------
Net earnings                               76       129       964     1,144 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
----------------------------------------------------------------------------
 Equity holders of Agrium                  76       127       966     1,140 
----------------------------------------------------------------------------
 Non-controlling interest                   -         2        (2)        4 
----------------------------------------------------------------------------
Net earnings                               76       129
       964     1,144 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Earnings per share attributable to                                          
 equity holders of                                                          
 Agrium (note 6)                                                            
----------------------------------------------------------------------------
 Basic earnings per share                0.52      0.80      6.50      7.22 
----------------------------------------------------------------------------
 Diluted earnings per share              0.52      0.80      6.50      7.21 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                AGRIUM INC.                                 
              Consolidated Statements of Comprehensive Income               
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                         2013      2012      2013      2012 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Net earnings                               76       129       964     1,144 
----------------------------------------------------------------------------
 Other comprehensive income (loss)                                          
----------------------------------------------------------------------------
  Items that may be reclassified to                                         
   earnings                                                                 
----------------------------------------------------------------------------
   Available for sale financial                                             
    instruments                                                             
----------------------------------------------------------------------------
    Losses                                 (5)        -        (4)        - 
----------------------------------------------------------------------------
   Foreign currency translation                                             
----------------------------------------------------------------------------
    Gains (losses)                         74       110      (169)       97 
----------------------------------------------------------------------------
   Associates and joint ventures                                            
    income (loss)                           -         1         1        (1)
----------------------------------------------------------------------------
                                           69       111      (172)       96 
----------------------------------------------------------------------------
  Items that will not be                                                    
   reclassified to earnings                                                 
----------------------------------------------------------------------------
   Post-employment benefits                                                 
----------------------------------------------------------------------------
    Actuarial gains (losses)               48         -        48       (22)
----------------------------------------------------------------------------
    Deferred income taxes                 (15)        -       (15)        6 
----------------------------------------------------------------------------
                                           33         -        33       (16)
----------------------------------------------------------------------------
 Other comprehensive income (loss)        102       111      (139)       80 
----------------------------------------------------------------------------
Comprehensive income                      178       240       825     1,224 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
----------------------------------------------------------------------------
 Equity holders of Agrium                 178       236       827     1,219 
----------------------------------------------------------------------------
 Non-controlling interest                   -         4        (2)        5 
----------------------------------------------------------------------------
Comprehensive income                      178       240       825     1,224 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                AGRIUM INC.                                 
                   Consolidated Statements of Cash Flows                    
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                         2013      2012      2013      2012 
                                               Restated            Restated 
                                                (note 3)            (note 3)
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Operating                                                                   
----------------------------------------------------------------------------
 Net earnings                              76       129       964     1,144 
-----------------------------------------------
-----------------------------
 Items not affecting cash                                                   
----------------------------------------------------------------------------
  Depreciation and amortization           108       120       350       317 
----------------------------------------------------------------------------
  Earnings from associates and joint                                        
   ventures                               (11)      (35)      (39)      (69)
----------------------------------------------------------------------------
  Share-based payments                    (21)       53       (35)      126 
----------------------------------------------------------------------------
  Unrealized gain on derivative                                             
   financial instruments                  (10)       (3)      (14)      (17)
----------------------------------------------------------------------------
  Unrealized foreign exchange (gain)                                        
   loss                                    (2)       (1)        2        (9)
----------------------------------------------------------------------------
  Deferred income taxes                    (5)      (23)      (69)      (29)
----------------------------------------------------------------------------
  Other                                    14        73        32        89 
----------------------------------------------------------------------------
 Dividends from associates and joint                                        
  ventures                                 12         -        27         3 
----------------------------------------------------------------------------
 Net changes in non-cash working                                            
  capital                                  84      (351)     (675)     (458)
----------------------------------------------------------------------------
Cash provided by (used in) operating                                        
 activities                               245       (38)      543     1,097 
----------------------------------------------------------------------------
Investing                                                                   
----------------------------------------------------------------------------
 Acquisitions, net of cash acquired        (7)       (5)      (56)      (77)
----------------------------------------------------------------------------
 Repayment of advance on acquisition                                        
  of Viterra Inc. (note 4)                  -         -       932         - 
----------------------------------------------------------------------------
 Capital expenditures                    (475)     (343)   (1,247)     (840)
----------------------------------------------------------------------------
 Investments in associates and joint                                        
  ventures                                  -       (20)        -       (10)
----------------------------------------------------------------------------
 Purchase of investments                 (140)       (4)     (148)       (7)
----------------------------------------------------------------------------
 Proceeds from disposal of                                                  
  investments                              65         -        65         - 
----------------------------------------------------------------------------
 Other                                    (23)       (3)      (53)      (48)
----------------------------------------------------------------------------
 Net changes in non-cash working                                            
  capital                                   7        31        53        60 
----------------------------------------------------------------------------
Cash used in investing activities        (573)     (344)     (454)     (922)
----------------------------------------------------------------------------
Financing                                                                   
----------------------------------------------------------------------------
 Short-term debt                          325       311      (491)      395 
----------------------------------------------------------------------------
 Long-term debt issued                      -         -     1,010        21 
----------------------------------------------------------------------------
 Transaction costs on long-term debt        -        (1)      (14)       (1)
----------------------------------------------------------------------------
 Repayment of long-term debt               (1)       (6)     (520)       (7)
----------------------------------------------------------------------------
 Dividends paid                           (75)      (79)     (224)     (115)
----------------------------------------------------------------------------
 Shares issued                              -         -         2         7 
----------------------------------------------------------------------------
 Shares repurchased                      (171)        -      (233)        - 
----------------------------------------------------------------------------
Cash provided by (used in) financing                                        
 activities                                78       225      (470)      300 
----------------------------------------------------------------------------
Effect of exchange rate changes on                                          
 cash and cash equivalents                 11        56       (22)       50 
----------------------------------------------------------------------------
(Decrease) increase in cash and cash                                        
 equivalents                             (239)     (101)     (403)      525 
----------------------------------------------------------------------------
Cash and cash equivalents -                                                 
 beginning of period (note 3)             494     1,913       658     1,287 
----------------------------------------------------------------------------
Cash and cash equivalents - end of                                          
 period                                   255     1,812       255     1,812 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Included in operating activities                                            
----------------------------------------------------------------------------
 Interest paid                             42        42       116        98 
----------------------------------------------------------------------------
 Interest received                         20        30        51        65 
----------------------------------------------------------------------------
 Income taxes paid                        137       206       592       351 
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Included in investing activities                                            
----------------------------------------------------------------------------
 Interest paid                             18         8        40        17 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                AGRIUM INC.                                 
                        Consolidated Balance Sheets                         
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                               September 30,   December 31, 
----------------------------------------------------------------------------
                                         2013           2012           2012 
                                                    Restated       Restated 
                                                     (note 3)       (note 3)
----------------------------------------------------------------------------
Assets                                                                      
----------------------------------------------------------------------------
 Current assets                                                             
-----------------------------------------------------------
-----------------
  Cash and cash equivalents               255          1,812            658 
----------------------------------------------------------------------------
  Accounts receivable                   2,982          3,009          2,224 
----------------------------------------------------------------------------
  Income taxes receivable                  68             67             32 
----------------------------------------------------------------------------
  Inventories                           2,845          2,571          3,094 
----------------------------------------------------------------------------
  Advance on acquisition of                                                 
   Viterra Inc. (note 4)                  764              -          1,792 
----------------------------------------------------------------------------
  Prepaid expenses and deposits           185            261            740 
----------------------------------------------------------------------------
  Other current assets                    103              -              - 
----------------------------------------------------------------------------
                                        7,202          7,720          8,540 
----------------------------------------------------------------------------
 Property, plant and equipment                                              
  (note 10)                             4,370          3,142          3,484 
----------------------------------------------------------------------------
 Intangibles                              638            628            636 
----------------------------------------------------------------------------
 Goodwill                               2,259          2,298          2,349 
----------------------------------------------------------------------------
 Investments in associates and                                              
  joint ventures                          614            640            627 
----------------------------------------------------------------------------
 Other assets                             114             54             99 
----------------------------------------------------------------------------
 Deferred income tax assets                80             77             70 
----------------------------------------------------------------------------
                                       15,277         14,559         15,805 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Liabilities and shareholders'                                               
 equity                                                                     
----------------------------------------------------------------------------
 Current liabilities                                                        
----------------------------------------------------------------------------
  Short-term debt (note 7)                792            603          1,314 
----------------------------------------------------------------------------
  Accounts payable                      2,943          2,775          3,479 
----------------------------------------------------------------------------
  Income taxes payable                      -            111            137 
----------------------------------------------------------------------------
  Current portion of long-term                                              
   debt (note 7)                           52            522            518 
----------------------------------------------------------------------------
  Current portion of other                                                  
   provisions                              76            128            108 
----------------------------------------------------------------------------
                                        3,863          4,139          5,556 
----------------------------------------------------------------------------
 Long-term debt (note 7)                3,014          1,573          2,069 
----------------------------------------------------------------------------
 Provisions for post-employment                                             
  benefits                                134            202            184 
----------------------------------------------------------------------------
 Other provisions                         423            425            413 
----------------------------------------------------------------------------
 Other liabilities                         60             74             79 
----------------------------------------------------------------------------
 Deferred income tax                                                        
  liabilities                             532            570            584 
----------------------------------------------------------------------------
                                        8,026          6,983          8,885 
----------------------------------------------------------------------------
 Shareholders' equity                                                       
----------------------------------------------------------------------------
  Share capital                         1,858          2,001          1,890 
----------------------------------------------------------------------------
  Retained earnings                     5,493          5,465          4,955 
----------------------------------------------------------------------------
  Accumulated other                                                         
   comprehensive (loss) income                                              
   (note 9)                              (101)           105             71 
----------------------------------------------------------------------------
  Equity holders of Agrium              7,250          7,571          6,916 
----------------------------------------------------------------------------
  Non-controlling interest                  1              5              4 
----------------------------------------------------------------------------
  Total equity                          7,251          7,576          6,920 
----------------------------------------------------------------------------
                                       15,277         14,559         15,805 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                 AGRIUM INC.                                
               Consolidated Statements of Shareholders' Equity              
                (Millions of U.S. dollars, except share data)               
                                 (Unaudited)                                
                                                                            
                                                                Accumulated 
                                Millions                              other 
                                      of                      comprehensive 
                                  common     Share  Retained   income (loss)
                                  shares   capital  earnings        (note 9)
----------------------------------------------------------------------------
December 31, 2011                    158     1,994     4,420             10 
----------------------------------------------------------------------------
 Net earnings                          -         -     1,140              - 
----------------------------------------------------------------------------
 Other comprehensive (loss)                                                 
  income, net of tax                                         
               
----------------------------------------------------------------------------
  Post-employment benefits             -         -       (16)             - 
----------------------------------------------------------------------------
  Foreign currency translation         -         -         -             96 
----------------------------------------------------------------------------
  Associates and joint ventures        -         -         -             (1)
----------------------------------------------------------------------------
 Comprehensive income, net of                                               
  tax                                  -         -     1,124             95 
----------------------------------------------------------------------------
 Dividends                             -         -       (79)             - 
----------------------------------------------------------------------------
 Non-controlling interest                                                   
  transactions                         -         -         -              - 
----------------------------------------------------------------------------
 Share-based payment                                                        
  transactions                         -         7         -              - 
----------------------------------------------------------------------------
September 30, 2012                   158     2,001     5,465            105 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
December 31, 2012                    149     1,890     4,955             71 
----------------------------------------------------------------------------
 Net earnings (loss)                   -         -       966              - 
----------------------------------------------------------------------------
 Other comprehensive (loss)                                                 
  income, net of tax                                                        
----------------------------------------------------------------------------
  Available for sale financial                                              
   instruments                         -         -         -             (4)
----------------------------------------------------------------------------
  Post-employment benefits             -         -        33              - 
----------------------------------------------------------------------------
  Foreign currency translation         -         -         -           (169)
----------------------------------------------------------------------------
  Associates and joint ventures        -         -         -              1 
----------------------------------------------------------------------------
 Comprehensive income, net of                                               
  tax                                  -         -       999           (172)
----------------------------------------------------------------------------
 Dividends                             -         -      (259)             - 
----------------------------------------------------------------------------
 Non-controlling interest                                                   
  transactions                         -         -        (3)             - 
----------------------------------------------------------------------------
 Shares repurchased                   (2)      (34)     (199)             - 
----------------------------------------------------------------------------
 Share-based payment                                                        
  transactions                         -         2         -              - 
----------------------------------------------------------------------------
September 30, 2013                   147     1,858     5,493           (101)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
 
                                                                            
                                AGRIUM INC.                                 
              Consolidated Statements of Shareholders' Equity               
               (Millions of U.S. dollars, except share data)                
                                (Unaudited)                                 
                                                                            
                                                                            
                                                                            
                                       Equity           Non-                
                                   holders of    controlling          Total 
                                       Agrium       interest         equity 
----------------------------------------------------------------------------
December 31, 2011                       6,424              4          6,428 
----------------------------------------------------------------------------
 Net earnings                           1,140              4          1,144 
----------------------------------------------------------------------------
 Other comprehensive (loss)                                                 
  income, net of tax                                                        
----------------------------------------------------------------------------
  Post-employment benefits                (16)             -            (16)
----------------------------------------------------------------------------
  Foreign currency translation             96              1             97 
----------------------------------------------------------------------------
  Associates and joint ventures            (1)             -             (1)
----------------------------------------------------------------------------
 Comprehensive income, net of                                               
  tax                                   1,219              5          1,224 
----------------------------------------------------------------------------
 Dividends                                (79)             -            (79)
----------------------------------------------------------------------------
 Non-controlling interest                                                   
  transactions                              -             (4)            (4)
----------------------------------------------------------------------------
 Share-based payment                                                        
  transactions                              7              -              7 
----------------------------------------------------------------------------
September 30, 2012                      7,571              5          7,576 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
December 31, 2012                       6,916              4          6,920 
----------------------------------------------------------------------------
 Net earnings (loss)                      966             (2)           964 
----------------------------------------------------------------------------
 Other comprehensive (loss)                                                 
  income, net of tax                                                        
----------------------------------------------------------------------------
  Available for sale financial                               
               
   instruments                             (4)             -             (4)
----------------------------------------------------------------------------
  Post-employment benefits                 33              -             33 
----------------------------------------------------------------------------
  Foreign currency translation           (169)             -           (169)
----------------------------------------------------------------------------
  Associates and joint ventures             1              -              1 
----------------------------------------------------------------------------
 Comprehensive income, net of                                               
  tax                                     827             (2)           825 
----------------------------------------------------------------------------
 Dividends                               (259)             -           (259)
----------------------------------------------------------------------------
 Non-controlling interest                                                   
  transactions                             (3)            (1)            (4)
----------------------------------------------------------------------------
 Shares repurchased                      (233)             -           (233)
----------------------------------------------------------------------------
 Share-based payment                                                        
  transactions                              2              -              2 
----------------------------------------------------------------------------
September 30, 2013                      7,250              1          7,251 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     

AGRIUM INC.

Summarized Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2013

(Millions of U.S. dollars, except per share amounts)

(Unaudited)

1. Corporate Information

Corporate information

Agrium Inc. ("Agrium") is incorporated under the laws of Canada with common shares listed under the symbol "AGU" on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Our Corporate head office is located at 13131 Lake Fraser Drive S.E. Calgary, Canada. We conduct operations globally from our Wholesale head office in Calgary, and our Retail and Advanced Technologies head offices in Loveland, Colorado, United States.

Agrium (with its subsidiaries) operates three strategic business units:


 
--  Retail operates in North and South America and Australia, and sells crop
    nutrients, crop protection products, seed and services directly to
    growers. 
--  Wholesale operates in North and South America and Europe, and produces,
    markets and distributes three primary groups of crop nutrients:
    nitrogen, potash and phosphate for agricultural and industrial customers
    around the world. 
--  Advanced Technologies ("AAT") produces and markets controlled-release
    crop nutrients and micronutrients in the broad-based agriculture,
    specialty agriculture, professional turf, horticulture, and consumer
    lawn and garden markets. 

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were approved for issuance by the Audit Committee on November 5, 2013. We prepared these interim financial statements in accordance with International Financial Reporting Standards applicable to the preparation of interim financial statements as issued by the International Accounting Standards Board, including International Accounting Standard 34 Interim Financial Reporting. They do not include all information and disclosures normally provided in annual financial statements and should be read in conjunction with our audited annual financial statements and related notes contained in our 2012 Annual Report, available at www.agrium.com.

Seasonality in our business results from increased demand for our products during planting seasons. Sales are generally higher in spring and fall.

2. Significant Accounting Policies

Except as described below, the accounting policies applied in this consolidated interim financial report are the same as those applied by Agrium in our 2012 Annual Report. The following changes in accounting policies will be reflected in our 2013 Annual Report.


 
Standard/                             Date and method of                    
Interpretation  Description           adoption              Impact          
----------------------------------------------------------------------------
IFRS 9          Financial             The effective date    We expect that  
                Instruments replaces  has been deferred     initial adoption
                previous guidance on  indefinitely. We are  will have an    
                the classification    studying the impact   impact on our   
                and measurement of    of early adoption as  financial       
                financial assets,     permitted by the      statements,     
                which will be         standard on a         since it will be
                classified on         retrospective basis.  adopted         
                initial recognition                         retrospectively;
                at either amortized                         however, we are 
                cost or fair value,                         not able to     
                with gains and                              reasonably      
                losses on                                   estimate the    
                remeasurement                               impact at this  
                recognized in                               time.           
                earnings, except for                                        
                recognition in other                                        
                comprehensive income                                        
                on election for                                             
                equity instruments                                          
                that are not held                                           
                for trading. The new                                        
                guidance also                                               
                revises standards                                           
                for financial                                               
                liabilities under                                           
                the fair value                                              
                option and for                                              
                derivatives linked                                          
                to unquoted equity                                          
                instruments.                                                
----------------------------------------------------------------------------
IFRS 10         Consolidated          January 1, 2013;      There has been  
                Financial Statements  retrospectively       no material     
                implements a single                         impact on       
                model based on                              adoption.       
                control for the                                             
                preparation and                                             
                presentation of                                             
                financial                                                   
                statements. It                                              
                introduces a new                                            
  
              definition of                                               
                control, requiring                                          
                power over the                                              
                investee; exposure,                                         
                or rights, to                                               
                variable returns                                            
                from involvement                                            
                with the investee;                                          
                and the ability to                                          
                use power over the                                          
                investee to affect                                          
                the amount of                                               
                returns. This model                                         
                also applies to                                             
                investments in                                              
                associates (IAS 28).                                        
----------------------------------------------------------------------------
IFRS 11         Joint Arrangements    January 1, 2013; in   See note 3 for  
                requires us as a      accordance with IFRS  impact on       
                party to a joint      11                    adoption.       
                arrangement to                                              
                recognize our rights                                        
                and obligations                                             
                arising from the                                            
                arrangement. Our                                            
                joint arrangements                                          
                under IFRS 11 will                                          
                be classified as                                            
                joint ventures,                                             
                requiring equity                                            
                accounting.                                                 
----------------------------------------------------------------------------
IFRS 12         Disclosure of         January 1, 2013       We will add     
                Interests in Other                          disclosures     
                Entities will                               about our       
                require us to                               interests in    
                disclose information                        other entities  
                that allows users to                        on adoption in  
                evaluate the nature,                        our annual      
                impact of and risks                         financial       
                associated with our                         statements.     
                interests in joint                                          
                arrangements,                                               
                associates and other                                        
                entities.                                                   
----------------------------------------------------------------------------
IFRS 13         Fair Value            January 1, 2013;      There has been  
                Measurement provides  prospectively         no material     
                a single set of                             impact on       
                requirements to be                          adoption.       
                applied to all fair                                         
                value measurements,                                         
                replacing the                                               
                existing guidance                                           
                dispersed across                                            
                many standards. It                                          
                provides a                                                  
                definition of fair                                          
                value as a market-                                          
                based measurement,                                          
                along with enhanced                                         
                disclosures about                                           
                fair value                                                  
                measurements.                                               
----------------------------------------------------------------------------
IAS 19          Employee Benefits     January 1, 2013;      We eliminated   
                provides users with   retrospectively       the corridor    
                a clearer picture of                        approach on     
                the commitments                             adoption of     
                resulting from                              IFRS. The       
                defined benefit                             balance of      
                plans (DBPs) by                             requirements    
                eliminating the                             have been       
                corridor approach,                          adopted in 2013 
                requiring                                   with no material
                presentation of                             impact. We will 
                gains and losses                            provide new     
                related to DBPs in                          disclosures     
                other comprehensive                         required by IAS 
                income, and adding                          19 in our annual
                enhanced disclosure                         financial       
                requirements.                               statements.     
----------------------------------------------------------------------------
IFRS 7          Offsetting Financial  January 1, 2013       There has been  
                Assets and                                  no material     
                Liabilities contains                        impact on       
                new disclosure                              adoption.       
                requirements for                                            
                amounts offset or                                           
                subject to master                                           
                netting                                                     
                arrangements.                                               
----------------------------------------------------------------------------
IFRIC 20        Stripping Costs in    January 1, 2013       There has been  
                the Production Phase                        no material     
                of a Surface Mine                           impact on       
                establishes when the                        adoption.       
                costs incurred to                                           
                remove mine waste                                           
                materials to gain                                           
                access to mineral                                           
                ore deposits during                                         
                the production phase                                        
                of a surface mine                                           
                should lead to the                                          
    
            recognition of an                                           
                asset, and how that                                         
                asset should be                                             
                measured.                                                   
----------------------------------------------------------------------------
----------------------------------------------------------------------------

3. Impact of Application of IFRS 11

Upon the application of IFRS 11, effective January 1, 2013 and with retrospective application to January 1, 2012, we reviewed and assessed the legal form and terms of contracts of our investments in joint arrangements. The application of IFRS 11 has changed the classification and subsequent accounting of our investment in Profertil S.A. and other joint arrangements, previously accounted for using the proportionate consolidation method. Under IFRS 11, Profertil S.A. and other joint arrangements are classified as joint ventures and our interest is accounted for using the equity method.


 
                                                Three months    Nine months 
                                                       ended          ended 
Impact of IFRS 11 on net earnings              September 30,  September 30, 
----------------------------------------------------------------------------
                                                        2012           2012 
----------------------------------------------------------------------------
Decrease in sales                                       (130)          (250)
----------------------------------------------------------------------------
Decrease in cost of product sold                         (71)          (157)
----------------------------------------------------------------------------
Decrease in gross profit                                 (59)           (93)
----------------------------------------------------------------------------
Decrease in selling and general and                                         
 administrative expenses                                  (2)            (8)
----------------------------------------------------------------------------
Decrease in other expenses                                 -             (1)
----------------------------------------------------------------------------
Decrease in other finance costs                           (2)            (3)
----------------------------------------------------------------------------
Decrease in income taxes                                 (20)           (22)
----------------------------------------------------------------------------
Increase in earnings from associates and joint                              
 ventures                                                (35)           (59)
----------------------------------------------------------------------------
Impact on net earnings                                     -              - 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Impact of IFRS 11 on assets and                                             
 liabilities                                September 30, 2012              
----------------------------------------------------------------------------
                                           As                               
                                   previously                            As 
                                     reported    Adjustments       restated 
----------------------------------------------------------------------------
Current assets                          7,901           (181)         7,720 
----------------------------------------------------------------------------
Property, plant and equipment           3,354           (212)         3,142 
----------------------------------------------------------------------------
                                                                            
Investments in associates and                                               
 joint ventures                           414            226            640 
----------------------------------------------------------------------------
Other assets                               55             (1)            54 
----------------------------------------------------------------------------
Current liabilities                     4,237            (98)         4,139 
----------------------------------------------------------------------------
Long-term debt                          1,607            (34)         1,573 
----------------------------------------------------------------------------
Other liabilities                          75             (1)            74 
----------------------------------------------------------------------------
Deferred income tax liabilities           605            (35)           570 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents               1,864            (52)         1,812 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
Impact of IFRS 11 on assets and                                             
 liabilities                                 December 31, 2012              
----------------------------------------------------------------------------
                                           As                               
                                   previously                             As
                                     reported    Adjustments        restated
----------------------------------------------------------------------------
Current assets                          8,712           (172)          8,540
----------------------------------------------------------------------------
Property, plant and equipment           3,698           (214)          3,484
----------------------------------------------------------------------------
                                                                            
Investments in associates and                                               
 joint ventures                           382            245             627
----------------------------------------------------------------------------
Other assets                              130            (31)             99
----------------------------------------------------------------------------
Current liabilities                     5,647            (91)          5,556
----------------------------------------------------------------------------
Long-term debt                          2,115            (46)          2,069
----------------------------------------------------------------------------
Other liabilities                          80             (1)             79
----------------------------------------------------------------------------
Deferred income tax liabilities           618            (34)            584
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents                 726            (68)            658
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                Thr
ee months    Nine months 
                                                       ended          ended 
Impact of IFRS 11 on cash flows                September 30,  September 30, 
----------------------------------------------------------------------------
                                                        2012           2012 
----------------------------------------------------------------------------
Decrease in cash provided by operating                                      
 activities                                              (53)           (38)
----------------------------------------------------------------------------
Decrease in cash used in investing activities              8             26 
----------------------------------------------------------------------------
Increase in cash provided by financing                                      
 activities                                               26             19 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

4. Business Acquisition

We acquired certain agri-products assets of Viterra Inc. ("Viterra") from Glencore International plc ("Glencore") on October 1, 2013. The acquired assets include over 200 retail farm centers in Canada and Australia.

We will allocate the majority of assets acquired and liabilities assumed to the Retail business unit. Benefits of the acquisition include expansion of geographical coverage for the sale of crop inputs in Canada, acquisition of a significant customer base and talented workforce, the value of synergies between Agrium and Viterra, and cost savings opportunities.

We have engaged an independent valuation firm to assist us in determining the fair value of the assets acquired, liabilities assumed, including contingent liabilities and provisions, and related deferred income tax impacts. The valuation is in progress; however a provisional purchase price allocation is not yet available due to the inherent complexity of the valuations and the short time frame following the closing date.

We expect the excess of the estimated fair value of the net assets acquired over the purchase price will result in a bargain purchase gain in the three months ending December 31, 2013. We believe that a bargain purchase gain is likely considering the circumstances surrounding the acquisition, including: the motivation of other parties to the transaction to announce the agreement without delay; and Glencore's intention to divest of assets that were not strategic to its operations with a "made in Canada" solution that included favorable terms to us because of our immediate and direct ability to integrate, control, manage and obtain synergies from the acquired assets compared to other bidders due to our unique vertically integrated operating strategy. Before finalizing our estimates of fair values and concluding that a bargain purchase gain is appropriate, we will complete a rigorous review of the assets acquired and liabilities assumed to determine if we should recognize any additional assets or liabilities. We will also review IFRS 3 Business Combinations when determining the measurement of identifiable assets acquired and liabilities assumed at the acquisition date.

Acquisition-related costs of $9-million were recorded in other expenses during the nine months ended September 30, 2013 (2012 - $4-million).

The purchase price and other adjustments will be recorded as a reduction of the advance on acquisition of Viterra Inc.


 
5. Other Expenses                                                           
                                                                            
                                     Three months ended   Nine months ended 
Other expenses                            September 30,       September 30, 
----------------------------------------------------------------------------
                                         2013      2012      2013      2012 
                                               Restated            Restated 
                                                (note 3)            (note 3)
----------------------------------------------------------------------------
Realized loss (gain) on derivative                                          
 financial instruments                     12         2        (2)       26 
----------------------------------------------------------------------------
Unrealized gain on derivative                                               
 financial instruments                    (10)       (3)      (14)      (17)
----------------------------------------------------------------------------
Interest income                           (20)      (30)      (51)      (65)
----------------------------------------------------------------------------
Foreign exchange loss                       1         3        27        14 
----------------------------------------------------------------------------
Environmental remediation and asset                                         
 retirement obligations                     1        66         5        78 
----------------------------------------------------------------------------
Bad debt (recovery) expense                (6)        6        20        30 
----------------------------------------------------------------------------
Potash profit and capital tax               3         -        15        13 
----------------------------------------------------------------------------
Other                                      35         2        45         2 
----------------------------------------------------------------------------
                                           16        46        45        81 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
6. Earnings per Share                                                       
                                                                            
Attributable to equity holders        Three months ended   Nine months ended
 of Agrium                                 September 30,       September 30,
----------------------------------------------------------------------------
                                          2013      2012      2013      2012
----------------------------------------------------------------------------
Numerator                                                                   
----------------------------------------------------------------------------
 Net earnings for the period                76       127       966     1,140
----------------------------------------------------------------------------
Denominator (millions)                                                      
----------------------------------------------------------------------------
 Weighted average number of shares                                          
  outstanding for basic and diluted                                         
  earnings per share                       147       158       149       158
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
7. Debt                                                                     
                                                                            
                                                                            
                                        September 30,          December 31, 
----------------------------------------------------------------------------
                                            2013                       2012 
                                                                   Restated 
       
                                                             (note 3)
----------------------------------------------------------------------------
                                   Total Unutilized  Utilized      Utilized 
----------------------------------------------------------------------------
Short-term debt                                                             
----------------------------------------------------------------------------
 Multi-jurisdictional facility                                              
  expiring 2017                    2,500      1,960       540         1,100 
----------------------------------------------------------------------------
 European facilities expiring                                               
  2013                               353        159       194           192 
----------------------------------------------------------------------------
 South American facilities                                                  
  expiring 2013 - 2014               140         82        58            22 
----------------------------------------------------------------------------
                                   2,993      2,201       792         1,314 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding letters of credit                   116                         
--------------------------------------------------------------              
Remaining capacity available                  2,085                         
--------------------------------------------------------------              
--------------------------------------------------------------              
                                                                            
                                               September 30,   December 31, 
----------------------------------------------------------------------------
                                                        2013           2012 
                                                                   Restated 
                                                                    (note 3)
----------------------------------------------------------------------------
Long-term debt                                                              
----------------------------------------------------------------------------
 Floating rate bank loans due 2014 - 2015                 56            106 
----------------------------------------------------------------------------
 Floating rate bank loans due 2013                         -            460 
----------------------------------------------------------------------------
 7.7% debentures due 2017                                100            100 
----------------------------------------------------------------------------
 6.75% debentures due 2019                               500            500 
----------------------------------------------------------------------------
 3.15% debentures due 2022                               500            500 
----------------------------------------------------------------------------
 3.5% debentures due 2023                                500              - 
----------------------------------------------------------------------------
 7.8% debentures due 2027                                125            125 
----------------------------------------------------------------------------
 7.125% debentures due 2036                              300            300 
----------------------------------------------------------------------------
 6.125% debentures due 2041                              500            500 
----------------------------------------------------------------------------
 4.9% debentures due 2043                                500              - 
----------------------------------------------------------------------------
 Other                                                    21             21 
----------------------------------------------------------------------------
                                                       3,102          2,612 
----------------------------------------------------------------------------
 Unamortized transaction costs                           (36)           (25)
----------------------------------------------------------------------------
 Current portion of long-term debt                       (52)          (518)
----------------------------------------------------------------------------
                                                       3,014          2,069 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

In April 2013, we increased the total capacity available under our multi-jurisdictional facility from $1.6-billion to $2.5-billion and extended the term by one year to 2017.

On May 28, 2013, we issued $500-million of 3.5 percent debentures due June 1, 2023 and $500-million of 4.9 percent debentures due June 1, 2043.

Our base shelf prospectus permits up to an additional $1.0-billion of common shares, preferred shares, subscription receipts, debt securities or units until April 2014. Issuance of further securities under the base shelf prospectus requires filing a prospectus supplement and is subject to availability of funding in capital markets.


 
8. Financial Instruments                                                    
                                                                            
Fair value of financial                                                     
 instruments                          Level 1        Level 2          Total 
----------------------------------------------------------------------------
September 30, 2013                                                          
----------------------------------------------------------------------------
 Fair value through profit or                                               
  loss                                                                      
----------------------------------------------------------------------------
  Cash and cash equivalents               255              -            255 
----------------------------------------------------------------------------
  Foreign exchange derivative                                               
   financial instruments                   (3)             -             (3)
----------------------------------------------------------------------------
  Gas and power derivative                                                  
   financial instruments                    1              1              2 
----------------------------------------------------------------------------
 Available for sale                       116              -            116 
----------------------------------------------------------------------------
September 30, 2012                                                          
----------------------------------------------------------------------------
 Fair value through profit or                                               
  loss                                                                      
----------------------------------------------------------------------------
  Cash and cash equivalents             1,812              -          1,812 
----------------------------------------------------------------------------
  Gas and power derivative                                                  
   financial instruments                  (20)             8            (12)
----------------------------------------------------------------------------
 Available for sale                        33              -             33 
----------------------------------------------------------------------------
December 31, 2012                                                           
---------------------------
-------------------------------------------------
 Fair value through profit or                                               
  loss                                                                      
----------------------------------------------------------------------------
  Cash and cash equivalents               658              -            658 
----------------------------------------------------------------------------
  Foreign exchange derivative                                               
   financial instruments                    -              4              4 
----------------------------------------------------------------------------
  Gas and power derivative                                                  
   financial instruments                  (15)             -            (15)
----------------------------------------------------------------------------
 Available for sale                        40              -             40 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

We determine fair value for financial instruments classified as Level 1 using independent quoted market prices for identical instruments in active markets. Fair value for financial instruments classified as Level 2 is estimated using quoted prices for similar instruments in active markets or prices for identical or similar instruments in markets that are not active, or using valuation techniques that are based on industry-accepted third-party models, which make maximum use of market-based inputs.

We determine the fair value of foreign exchange derivative contracts using the income approach. We determine the fair value of gas and power derivative contracts using the market approach. Inputs to fair value determinations include, but are not limited to, current spot prices and forward pricing curves for natural gas and power, current published interest rates and foreign currency exchange rates, market volatility, our own credit risk and counterparty credit risk.

We monitor the availability of observable market data to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or market liquidity generally drive changes in availability of observable market data. Changes in availability of observable market data, which also may result in changing the valuation technique used, are generally the cause of transfers between Level 1, Level 2 and Level 3. There have been no transfers between Level 1 and Level 2 fair value measurements in the reporting period ended September 30, 2013 (September 30, 2012 - no transfers). We do not measure any of our financial instruments using Level 3 inputs.


 
                                                                            
Fair value and carrying value of long-term debt           September 30, 2013
----------------------------------------------------------------------------
                                                                    Carrying
                                                   Fair value          value
----------------------------------------------------------------------------
Long-term debt                                                              
----------------------------------------------------------------------------
 Debentures - amortized cost                            3,145          3,025
----------------------------------------------------------------------------
 Floating rate debt - amortized cost                       77             77
----------------------------------------------------------------------------
                                                        3,222          3,102
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Fair value of long-term debt is determined based on comparable debt instruments. Carrying value of floating rate debt and all other financial instruments approximates fair value due to the short-term nature of the instruments.


 
9. Accumulated Other Comprehensive Income                                   
                                                                            
                                                                      Total 
                                                                accumulated 
                   Available for      Foreign                         other 
                  sale financial     currency Associates and  comprehensive 
                     instruments  translation joint ventures   income (loss)
----------------------------------------------------------------------------
December 31, 2011             (1)          11              -             10 
----------------------------------------------------------------------------
 Gains (losses)                -           96             (1)            95 
----------------------------------------------------------------------------
September 30, 2012            (1)         107             (1)           105 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
December 31, 2012              -           74             (3)            71 
----------------------------------------------------------------------------
 (Losses) gains               (4)        (169)             1           (172)
----------------------------------------------------------------------------
September 30, 2013            (4)         (95)            (2)          (101)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

10. Additional Information

Property, plant and equipment

During the nine months ended September 30, 2013, we added $804-million to assets under construction at our Vanscoy Potash facility.


 
Dividends                                                                   
                                September 30,                               
----------------------------------------------------------------------------
                                    2013                                    
                Declared                                                    
---------------------------------------------------                         
Effective                                                     Paid to       
                               Per share     Total       Shareholders  Total
----------------------------------------------------------------------------
December 14, 2012                   0.50        NA   January 17, 2013     75
----------------------------------------------------------------------------
February 22, 2013                   0.50        75     April 18, 2013     74
----------------------------------------------------------------------------
April 9, 2013                       0.50        74      July 18, 2013     75
----------------------------------------------------------------------------
September 23, 2013                  0.75       110   October 17, 2013     NA
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Share capital

During the nine months ended September 30, 2013, we granted to officers and employees 395,759 Tandem Stock Appreciation Rights with a grant price of $101.13 and 193,511 Performance Share Units.

Our authorized share capital consists of unlimited common shares without par value and unlimited preferred shares.

Normal Course Issuer Bid

During the nine months ended September 30, 2013 , we purchased two million shares at an average share price of $87 for total consideration of $233-million under our Normal Course Issuer Bid ("NCIB"). From October 1, 2013 to October 31, 2013, we purchased two million shares at an average share price of $85 for total consideration of $191-million. Under the NCIB, we may purchase for cancellation up to 5 percent of our currently issued and outstanding common shares until May 20, 2014. The actual number of shares purchased will be at Agrium's discretion and will depend on market conditions, share prices, Agrium's cash position and other factors.


 
11. Operating Segments                                                      
                                                                            
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                         2013      2012      2013      2012 
                                               Restated            Restated 
                                                (note 3)            (note 3)
----------------------------------------------------------------------------
Sales                                                                       
----------------------------------------------------------------------------
 Retail                                                                     
----------------------------------------------------------------------------
  Crop nutrients                          654       634     3,941     4,028 
----------------------------------------------------------------------------
  Crop protection products              1,059       872     3,693     3,433 
----------------------------------------------------------------------------
  Seed                                     69        56     1,163     1,084 
----------------------------------------------------------------------------
  Merchandise                             122       105       384       392 
----------------------------------------------------------------------------
  Services and other                      205       167       630       567 
----------------------------------------------------------------------------
                                        2,109     1,834     9,811     9,504 
----------------------------------------------------------------------------
 Wholesale                                                                  
----------------------------------------------------------------------------
  Nitrogen                                286       424     1,309     1,468 
----------------------------------------------------------------------------
  Potash                                   93        80       457       465 
----------------------------------------------------------------------------
  Phosphate                               122       183       495       596 
----------------------------------------------------------------------------
  Product purchased for resale            210       254       891     1,037 
----------------------------------------------------------------------------
  Ammonium sulfate and other               41        45       224       219 
----------------------------------------------------------------------------
                                          752       986     3,376     3,785 
----------------------------------------------------------------------------
 Advanced Technologies                    108       125       448       438 
----------------------------------------------------------------------------
 Other                                   (100)     (113)     (526)     (552)
----------------------------------------------------------------------------
                                        2,869     2,832    13,109    13,175 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inter-segment sales                                                         
----------------------------------------------------------------------------
 Retail                                     3         3        14        18 
----------------------------------------------------------------------------
 Wholesale                                 87       100       475       475 
----------------------------------------------------------------------------
 Advanced Technologies                     10        10        37        59 
----------------------------------------------------------------------------
                                          100       113       526       552 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings                                                                
----------------------------------------------------------------------------
 Retail                                    91        69       625       682 
----------------------------------------------------------------------------
 Wholesale                                 91       289       871     1,246 
----------------------------------------------------------------------------
 Advanced Technologies                    (13)       (3)        3         6 
----------------------------------------------------------------------------
 Other                                    (33)     (159)      (64)     (271)
----------------------------------------------------------------------------
 Earnings before finance costs and                                          
  income taxes                            136       196     1,435     1,663 
----------------------------------------------------------------------------
 Finance costs related to long-term                                         
  debt                                     26        23        69        67 
----------------------------------------------------------------------------
 Other finance costs                        9         7        48        26 
----------------------------------------------------------------------------
 Earnings before income taxes             101       166     1,318     1,570 
----------------------------------------------------------------------------
 Income taxes                              25        37       354       426 
----------------------------------------------------------------------------
Net earnings                               76       129       964     1,144 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                               September 30,   December 31, 
----------------------------------------------------------------------------
                                                        2013           2012 
                                                                   Restated 
                                                                    (note 3)
----------------------------------------------------------------------------
Total assets                                                                
----------------------------------------------------------------------------
 Retail                                                8,375          8,338 
----------------------------------------------------------------------------
 Wholesale                                             5,116          4,262 
----------------------------------------------------------------------------
 Advanced Technologies                                   453            545 
----------------------------------------------------------------------------
 Othe
r                                                 1,333          2,660 
----------------------------------------------------------------------------
                                                      15,277         15,805 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                AGRIUM INC.                                 
                        Supplemental Information 1a                         
                             Results by Segment                             
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                      Three months ended September 30,      
----------------------------------------------------------------------------
                                                    2013                    
----------------------------------------------------------------------------
                                                     Advanced               
                                Retail Wholesale Technologies  Other  Total 
----------------------------------------------------------------------------
Sales - external                 2,106       665           98      -  2,869 
      - inter-segment                3        87           10   (100)     - 
----------------------------------------------------------------------------
Total sales                      2,109       752          108   (100) 2,869 
Cost of product sold             1,598       629           96    (95) 2,228 
----------------------------------------------------------------------------
Gross profit                       511       123           12     (5)   641 
----------------------------------------------------------------------------
Gross profit (%)                    24        16           11            22 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                            416        10           14     (4)   436 
General and administrative          29        13           11     11     64 
Earnings from associates and                                                
 joint ventures                     (3)       (8)           -      -    (11)
Other (income) expenses            (22)       17            -     21     16 
----------------------------------------------------------------------------
EBIT (1)                            91        91          (13)   (33)   136 
EBITDA (2)                         147       130           (5)   (28)   244 
Adjusted EBITDA(2)                 147       143           (5)   (28)   257 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                      Three months ended September 30,      
----------------------------------------------------------------------------
                                                  2012 (3)                  
----------------------------------------------------------------------------
                                                     Advanced               
                                Retail Wholesale Technologies  Other  Total 
----------------------------------------------------------------------------
Sales - external                 1,831       886          115      -  2,832 
      - inter-segment                3       100           10   (113)     - 
----------------------------------------------------------------------------
Total sales                      1,834       986          125   (113) 2,832 
Cost of product sold             1,396       687           97    (87) 2,093 
----------------------------------------------------------------------------
Gross profit                       438       299           28    (26)   739 
----------------------------------------------------------------------------
Gross profit (%)                    24        30           22            26 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                            368         9           14     (2)   389 
General and administrative          26        11           12     94    143 
(Earnings) loss from associates                                             
 and joint ventures                 (3)      (33)           -      1    (35)
Other (income) expenses            (22)       23            5     40     46 
----------------------------------------------------------------------------
EBIT (1)                            69       289           (3)  (159)   196 
EBITDA (2)                         121       348            4   (157)   316 
Adjusted EBITDA(2)                 121       376            4   (157)   344 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Earnings (loss) before finance costs and income taxes.                  
(2) Certain measures presented in this table are not recognized measures    
    under IFRS and our method of calculation may not be directly comparable 
    to similar measures presented by other companies. We believe these      
    supplemental non-IFRS measures provide useful information to management,
    investors and securities analysts in measuring our operating and        
    financial performance and facilitating comparison from period to period 
    as well as to peers and industry averages. Refer to Supplemental        
    Information 6 for further explanations.                                 
(3) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
                                                                            
                                AGRIUM INC.                                 
                        Supplemental Information 1b                         
                             Results by Segment                             
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                      Nine months ended September 30,       
----------------------------------------------------------------------------
                                                    2013                    
----------------------------------------------------------------------------
                                                     Advanced               
                                Retail Wholesale Technologies Other   Total 
----------------------------------------------------------------------------
Sales - external                 9,797     2,901          411     -  13,109 
      - inter-segment               14       475           37  (526)      - 
----------------------------------------------------------------------------
Total sales                      9,811     3,376          448  (526) 13,109 
Cost of product sold             7,782     2,439          371  (562) 10,030 
----------------------------------------------------------------------------
Gross profit                     2,029       937           77    36   3,079 
----------------------------------------------------------------------------
Gross p
rofit (%)                    21        28           17            23 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                          1,343        28           42    (9)  1,404 
General and administrative          85        50           34    65     234 
(Earnings) loss from associates                                             
 and joint ventures                 (7)      (34)           1     1     (39)
Other (income) expenses            (17)       22           (3)   43      45 
----------------------------------------------------------------------------
EBIT (1)                           625       871            3   (64)  1,435 
EBITDA (2)                         791     1,022           25   (53)  1,785 
Adjusted EBITDA(2)                 791     1,052           25   (53)  1,815 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                      Nine months ended September 30,       
----------------------------------------------------------------------------
                                                  2012 (3)                  
----------------------------------------------------------------------------
                                                     Advanced               
                                Retail Wholesale Technologies Other   Total 
----------------------------------------------------------------------------
Sales - external                 9,486     3,310          379     -  13,175 
      - inter-segment               18       475           59  (552)      - 
----------------------------------------------------------------------------
Total sales                      9,504     3,785          438  (552) 13,175 
Cost of product sold             7,535     2,488          353  (576)  9,800 
----------------------------------------------------------------------------
Gross profit                     1,969     1,297           85    24   3,375 
----------------------------------------------------------------------------
Gross profit (%)                    21        34           19            26 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                          1,238        27           41    (8)  1,298 
General and administrative          89        32           36   245     402 
Earnings from associates and                                                
 joint ventures                     (7)      (60)          (2)    -     (69)
Other (income) expenses            (33)       52            4    58      81 
----------------------------------------------------------------------------
EBIT (1)                           682     1,246            6  (271)  1,663 
EBITDA (2)                         827     1,388           26  (261)  1,980 
Adjusted EBITDA(2)                 827     1,424           26  (261)  2,016 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Earnings (loss) before finance costs and income taxes.                  
(2) Certain measures presented in this table are not recognized measures    
    under IFRS and our method of calculation may not be directly comparable 
    to similar measures presented by other companies. We believe these      
    supplemental non-IFRS measures provide useful information to management,
    investors and securities analysts in measuring our operating and        
    financial performance and facilitating comparison from period to period 
    as well as to peers and industry averages. Refer to Supplemental        
    Information 6 for further explanations.                                 
(3) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 2                         
                                Product Lines                               
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                           Three months ended September 30, 
----------------------------------------------------------------------------
                                               2013         2012 (3)        
----------------------------------------------------------------------------
                                    Cost of                 Cost of         
                                    product   Gross         product   Gross 
                              Sales sold (1) profit   Sales sold (1) profit 
----------------------------------------------------------------------------
                                                                            
Retail (2)                                                                  
 Crop nutrients                 654     538     116     634     523     111 
 Crop protection products     1,059     811     248     872     670     202 
 Seed                            69      39      30      56      28      28 
 Merchandise                    122     103      19     105      88      17 
 Services and other             205     107      98     167      87      80 
----------------------------------------------------------------------------
                              2,109   1,598     511   1,834   1,396     438 
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                       286     210      76     424     209     215 
 Potash                          93      66      27      80      57      23 
 Phosphate                      122     115       7     183     136      47 
 Product purchased for                                                      
  resale                        210     209       1     254     257      (3)
 Ammonium sulfate and other      41      29      12      45      28      17 
----------------------------------------------------------------------------
                                752     629     123     986     687     299 
----------------------------------------------------------------------------
Advanced Technologies                                                       
 Turf and ornamental             74      63      11      67      57      10 
 Agriculture                     34      33       1      58      40      18 
----------------------------------------------------------------------------
                                108      96      12     125      97      28 
----------------------------------------------------------------------------
Other inter-segment                                                         
 eliminations                  (100)    (95)     (5)   (113)    (87)    (26)
----------------------------------------------------------------------------
Total                         2,869   2,228     641   2,832   2,093     739 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale equity accounted                                                  
 joint   
                                                                   
ventures:                                                                   
 Nitrogen                        73      64       9     124      68      56 
 Product purchased for                                                      
  resale                         21      19       2      27      24       3 
----------------------------------------------------------------------------
                                 94      83      11     151      92      59 
----------------------------------------------------------------------------
Total Wholesale including                                                   
 equity accounted joint                                                     
 ventures                       846     712     134   1,137     779     358 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 2                         
                                Product Lines                               
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                             Nine months ended September 30,
----------------------------------------------------------------------------
                                               2013         2012 (3)        
----------------------------------------------------------------------------
                                    Cost of                 Cost of         
                                    product   Gross         product    Gross
                              Sales sold (1) profit   Sales sold (1)  profit
----------------------------------------------------------------------------
                                                                            
Retail (2)                                                                  
 Crop nutrients               3,941   3,280     661   4,028   3,362      666
 Crop protection products     3,693   2,911     782   3,433   2,708      725
 Seed                         1,163     949     214   1,084     887      197
 Merchandise                    384     320      64     392     320       72
 Services and other             630     322     308     567     258      309
----------------------------------------------------------------------------
                              9,811   7,782   2,029   9,504   7,535    1,969
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                     1,309     766     543   1,468     686      782
 Potash                         457     226     231     465     202      263
 Phosphate                      495     424      71     596     444      152
 Product purchased for                                                      
  resale                        891     876      15   1,037   1,014       23
 Ammonium sulfate and other     224     147      77     219     142       77
----------------------------------------------------------------------------
                              3,376   2,439     937   3,785   2,488    1,297
----------------------------------------------------------------------------
Advanced Technologies                                                       
 Turf and ornamental            252     208      44     251     210       41
 Agriculture                    196     163      33     187     143       44
----------------------------------------------------------------------------
                                448     371      77     438     353       85
----------------------------------------------------------------------------
Other inter-segment                                                         
 eliminations                  (526)   (562)     36    (552)   (576)      24
----------------------------------------------------------------------------
Total                        13,109  10,030   3,079  13,175   9,800    3,375
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale equity accounted                                                  
 joint                                                                      
ventures:                                                                   
 Nitrogen                       162     124      38     207     120       87
 Product purchased for                                                      
  resale                         84      79       5      74      68        6
----------------------------------------------------------------------------
                                246     203      43     281     188       93
----------------------------------------------------------------------------
Total Wholesale including                                                   
 equity accounted joint                                                     
 ventures                     3,622   2,642     980   4,066   2,676    1,390
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Includes depreciation and amortization.                                 
(2) International Retail sales were $582-million (2012 - $602-million) and  
    gross profit was $111-million (2012 - $114-million) for the three months
    ended September 30. International Retail sales were $2,059-million (2012
    - $2,001-million) and gross profit was $341-million (2012 - $353-       
    million) for the nine months ended September 30.                        
(3) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 3a                        
                      Selected Volumes and Sales Prices                     
                                 (Unaudited)                                
                                                                            
                                                                            
                                        Three months ended September 30,    
----------------------------------------------------------------------------
                                                      2013                  
----------------------------------------------------------------------------
                                                          Cost of           
                                        Sales   Selling   product           
                                       tonnes     price      sold    Margin 
                                       (000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------
Retail                                                                      
 Crop nutrients                                                             
  Domestic                                754       589                     
  International                           411       511                     
----------------------------------------------------------------------------
 Total cr
op nutrients                   1,165       561       461       100 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                                224       543                     
   Urea                                   234       441                     
   Other                                  178       346                     
----------------------------------------------------------------------------
 Total nitrogen                           636       450       331       119 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                                181       395                     
  International                            84       251                     
----------------------------------------------------------------------------
 Total potash                             265       349       246       103 
----------------------------------------------------------------------------
                                                                            
 Phosphate                                192       633       595        38 
 Product purchased for resale             566       372       371         1 
 Ammonium sulfate                          77       333       196       137 
 Other                                     33                               
----------------------------------------------------------------------------
                                                                            
Total Wholesale                         1,769       425       355        70 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale equity accounted joint                                            
 ventures:                                                                  
 Nitrogen                                                                   
  International                           172       422       369        53 
 Product purchased for resale              55       382       344        38 
----------------------------------------------------------------------------
                                          227       412       362        50 
----------------------------------------------------------------------------
Total Wholesale including equity                                            
 accounted joint ventures               1,996       424       357        67 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
                                AGRIUM INC.                                 
                        Supplemental Information 3a                         
                     Selected Volumes and Sales Prices                      
                                (Unaudited)                                 
                                                                            
                                                                            
                                        Three months ended September 30,    
----------------------------------------------------------------------------
                                                    2012 (1)                
----------------------------------------------------------------------------
                                                          Cost of           
                                        Sales   Selling   product           
                                       tonnes     price      sold    Margin 
                                       (000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------
Retail                                                                      
 Crop nutrients                                                             
  Domestic                                677       612                     
  International                           349       634                     
----------------------------------------------------------------------------
 Total crop nutrients                   1,026       619       509       110 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                                214       560                     
   Urea                                   391       574                     
   Other                                  214       372                     
----------------------------------------------------------------------------
 Total nitrogen                           819       517       255       262 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                                117       564                     
  International                            43       333                     
----------------------------------------------------------------------------
 Total potash                             160       503       363       140 
----------------------------------------------------------------------------
                                                                            
 Phosphate                                260       703       519       184 
 Product purchased for resale             650       390       395        (5)
 Ammonium sulfate                          73       393       200       193 
 Other                                     32                               
----------------------------------------------------------------------------
                                                                            
Total Wholesale                         1,994       494       344       150 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale equity accounted joint                                            
 ventures:                                                                  
 Nitrogen                                                                   
  International                           241       517       284       233 
 Product purchased for resale              64       432       376        56 
----------------------------------------------------------------------------
                                          305       496       302       194 
----------------------------------------------------------------------------
Total Wholesale including equity                                            
 accounted joint ventures               2,299       495       339       156 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
         
                                                                   
(1) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 3b                        
                      Selected Volumes and Sales Prices                     
                                 (Unaudited)                                
                                                                            
                                                                            
                                         Nine months ended September 30,    
----------------------------------------------------------------------------
                                                      2013                  
----------------------------------------------------------------------------
                                                          Cost of           
                                        Sales   Selling   product           
                                       tonnes     price      sold    Margin 
                                       (000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------
Retail                                                                      
 Crop nutrients                                                             
  Domestic                              5,222       605                     
  International                         1,442       544                     
----------------------------------------------------------------------------
 Total crop nutrients                   6,664       591       492        99 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                                836       657                     
   Urea                                   933       519                     
   Other                                  716       385                     
----------------------------------------------------------------------------
 Total nitrogen                         2,485       527       309       218 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                                622       449                     
  International                           565       314                     
----------------------------------------------------------------------------
 Total potash                           1,187       385       190       195 
----------------------------------------------------------------------------
                                                                            
 Phosphate                                741       668       572        96 
 Product purchased for resale           2,039       437       430         7 
 Ammonium sulfate                         247       410       195       215 
 Other                                    242                               
----------------------------------------------------------------------------
                                                                            
Total Wholesale                         6,941       486       351       135 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale equity accounted joint                                            
 ventures:                                                                  
 Nitrogen                                                                   
  International                           360       449       343       106 
 Product purchased for resale             218       385       362        23 
----------------------------------------------------------------------------
                                          578       425       350        75 
----------------------------------------------------------------------------
Total Wholesale including equity                                            
 accounted joint ventures               7,519       482       352       130 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
                                AGRIUM INC.                                 
                        Supplemental Information 3b                         
                     Selected Volumes and Sales Prices                      
                                (Unaudited)                                 
                                                                            
                                                                            
                                        Nine months ended September 30,     
----------------------------------------------------------------------------
                                                    2012 (1)                
----------------------------------------------------------------------------
                                                          Cost of           
                                        Sales   Selling   product           
                                       tonnes     price      sold    Margin 
                                       (000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------
Retail                                                                      
 Crop nutrients                                                             
  Domestic                              5,267       625                     
  International                         1,208       612                     
----------------------------------------------------------------------------
 Total crop nutrients                   6,475       622       519       103 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                                860       608                     
   Urea                                 1,080       590                     
   Other                                  823       375                     
----------------------------------------------------------------------------
 Total nitrogen                         2,763       531       248       283 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                                564       553                     
  International                           387       395                     
----------------------------------------------------------------------------
 Total potash                             951       489       213       276 
---------
-------------------------------------------------------------------
                                                                            
 Phosphate                                816       730       543       187 
 Product purchased for resale           2,284       454       444        10 
 Ammonium sulfate                         244       420       214       206 
 Other                                    230                               
----------------------------------------------------------------------------
                                                                            
Total Wholesale                         7,288       519       341       178 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale equity accounted joint                                            
 ventures:                                                                  
 Nitrogen                                                                   
  International                           399       519       301       218 
 Product purchased for resale             185       401       367        34 
----------------------------------------------------------------------------
                                          584       481       322       159 
----------------------------------------------------------------------------
Total Wholesale including equity                                            
 accounted joint ventures               7,872       517       340       177 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
 

 
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 4                         
                        Depreciation and Amortization                       
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                        Three months ended September 30,    
----------------------------------------------------------------------------
                                                     2013                   
----------------------------------------------------------------------------
                                     Cost of                  General       
                                     product                      and       
                                        sold   Selling administrative Total 
----------------------------------------------------------------------------
                                                                            
Retail                                     1        53              2    56 
Wholesale                                                                   
 Nitrogen                                 16                                
 Potash                                   11                                
 Phosphate                                10                                
 Product purchased for resale              1                                
 Ammonium sulfate and other                1                                
----------------------------------------------------------------------------
                                          39         -              -    39 
Advanced Technologies                      5         -              3     8 
Other                                      -         -              5     5 
----------------------------------------------------------------------------
Total                                     45        53             10   108 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                             Nine months ended September 30,
----------------------------------------------------------------------------
                                                                       2013 
----------------------------------------------------------------------------
                                     Cost of                  General       
                                     product                      and       
                                        sold   Selling administrative Total 
----------------------------------------------------------------------------
                                                                            
Retail                                     4       154              8   166 
Wholesale                                                                   
 Nitrogen                                 52                                
 Potash                                   39                                
 Phosphate                                41                                
 Product purchased for resale              1                                
 Ammonium sulfate and other                4                                
----------------------------------------------------------------------------
                                         137         -             14   151 
Advanced Technologies                     13         -              9    22 
Other                                      -         -             11    11 
----------------------------------------------------------------------------
Total                                    154       154             42   350 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
 
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 4                         
                        Depreciation and Amortization                       
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                        Three months ended September 30,    
----------------------------------------------------------------------------
                                                    2012 (1)                
----------------------------------------------------------------------------
                                     Cost of                  General       
                                     product                      and       
                                        sold   Selling administrative  Total
----------------------------------------------------------------------------
                                                                            
Retail                                     1        47              4     52
Wholesale                                                                   
 Nitrogen                                 13                                
 Potash                                   11                                
 Phosphate                                29                                
 Product purchased for resale              -                             
   
 Ammonium sulfate and other                2                                
----------------------------------------------------------------------------
                                          55         -              4     59
Advanced Technologies                      4         -              3      7
Other                                      -         -              2      2
----------------------------------------------------------------------------
Total                                     60        47             13    120
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                             Nine months ended September 30,
----------------------------------------------------------------------------
                                                              2012 (1)      
----------------------------------------------------------------------------
                                     Cost of                  General       
                                     product                      and       
                                        sold   Selling administrative  Total
----------------------------------------------------------------------------
                                                                            
Retail                                     4       125             16    145
Wholesale                                                                   
 Nitrogen                                 46                                
 Potash                                   30                                
 Phosphate                                56                                
 Product purchased for resale              1                                
 Ammonium sulfate and other                4                                
----------------------------------------------------------------------------
                                         137         -              5    142
Advanced Technologies                     11         -              9     20
Other                                      -         -             10     10
----------------------------------------------------------------------------
Total                                    152       125             40    317
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(1) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
                                                                            
                                AGRIUM INC.                                 
                       Supplemental Information 5 (1)                       
                        Selected Financial Measures                         
            (Millions of U.S. dollars, unless stated otherwise)             
                                (Unaudited)                                 
                                                                            
                                 Rolling four quarters ended September 30,  
----------------------------------------------------------------------------
                                         2013                  2012         
----------------------------------------------------------------------------
                                         Consolidated          Consolidated 
                                 Retail        Agrium  Retail     Agrium (2)
----------------------------------------------------------------------------
Return on operating capital                                                 
 employed (%)                        16            19      17            26 
Return on capital employed (%)        8            14       9            17 
Average non-cash working capital                                            
 to sales (%)                        20            17      20            16 
Operating coverage ratio (%)         72            52      70            52 
EBITDA to sales (%)                   8            15       8            16 
                                                                            
                                                                            
                                               September 30,                
----------------------------------------------------------------------------
                                         2013                  2012         
----------------------------------------------------------------------------
                                         Consolidated          Consolidated 
                                 Retail        Agrium  Retail     Agrium (2)
----------------------------------------------------------------------------
Non-cash working capital          2,720         3,061   2,688         2,894 
                                                                            
                                                                            
Domestic measures                Rolling four quarters ended September 30,  
----------------------------------------------------------------------------
                                   2013                  2012               
----------------------------------------              --------              
                                 Retail                Retail               
----------------------------------------              --------              
Return on operating capital                                                 
 employed (%)                        21                    22               
Return on capital employed (%)       11                    11               
EBITDA to sales (%)                   9                     9               
                                                                            
(1) Certain measures presented in this table are not recognized measures    
    under IFRS and our method of calculation may not be directly comparable 
    to similar measures presented by other companies. We believe these      
    supplemental non-IFRS measures provide useful information to management,
    investors and securities analysts in measuring our operating and        
    financial performance and facilitating comparison from period to period 
    as well as to peers and industry averages. Refer to Supplemental        
    Information 6 for further explanations.                                 
(2) Restated for the application of IFRS 11 Joint Arrangements requiring    
    equity accounting for joint ventures.                                   
                                                                            
                                 AGRIUM INC.                                
                         Supplemental Information 6                         
               Accompanying Notes to Supplemental Information               
                                                                            
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IFRS Financial Measure                        Definition                    
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Average non-cash working  Rolling four quarter average non-cash working     
 capital to sales (1)     capital divided by sales.                         
Operating coverage ratio  Selling, general and administrative expenses,     
 (1)                      earnings from associates and joint ventures and   
                          other expenses, divided by gross profit.         
 
Non-cash working capital  Current assets less current liabilities, excluding
 (1)                      cash and cash equivalents, advance on acquisition 
                          of Viterra Inc., other current assets, short-term 
                          debt, current portion of long-term debt and       
                          current assets and liabilities of discontinued    
                          operations.                                       
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                                                    Usefulness of Additional
                                                      or Non-IFRS Financial 
                                 Definition                  Measure        
----------------------------------------------------------------------------
Additional IFRS Financial Measure (As defined in Canadian Securities        
Administrators' Staff Notice 52-306 (Revised))                              
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Return on operating       Last 12 months' EBIT      Used to measure         
 capital employed(1)      less income taxes at a    operating performance   
                          tax rate of 27 percent    and efficiency of our   
                          (2012 - 28 percent)       capital allocation      
                          divided by rolling four   process.                
                          quarter average                                   
                          operating capital                                 
                          employed. Operating                               
                          capital employed                                  
                          includes non-cash                                 
                          working capital,                                  
                          property, plant and                               
                          equipment, investments                            
                          in associates and joint                           
                          ventures and other                                
                          assets.                                           
Return on capital         Last 12 months' EBIT      Used to measure         
 employed(1)              less income taxes at a    operating performance   
                          tax rate of 27 percent    and efficiency of our   
                          (2012 - 28 percent)       capital allocation      
                          divided by rolling four   process.                
                          quarter average capital                           
                          employed. Capital                                 
                          employed includes                                 
                          operating capital                                 
                          employed, intangibles                             
                          and goodwill.                                     
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Non-IFRS Financial Measure                                                  
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EBITDA to sales           Earnings (loss) before    Used to measure         
                          finance costs, income     operating performance   
                          taxes, depreciation and   earnings and cash flow  
                          amortization divided by   we generate from each   
                          sales.                    dollar of sales.        
EBITDA                    Earnings (loss) before    Used to measure         
                          finance costs, income     operating performance.  
                          taxes, depreciation and                           
                          amortization.                                     
Adjusted EBITDA           Earnings (loss) before    Used to measure         
                          finance costs, income     operating performance.  
                          taxes, depreciation and                           
                          amortization and before                           
                          finance costs, income                             
                          taxes, depreciation and                           
                          amortization of joint                             
                          ventures.                                         
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(1) These measures are IFRS measures or additional IFRS measures when       
    calculated using information included in our consolidated financial     
    statements. They are classified as non-IFRS measures when calculated    
    using information from our Retail segment because the specific          
    components are not included in our financial statements or notes.       

Contacts: Agrium Inc. Richard Downey Vice President, Investor & Corporate Relations (403) 225-7357

Agrium Inc. Todd Coakwell Director, Investor Relations (403) 225-7437

Agrium Inc. Louis Brown Analyst, Investor Relations (403) 225-7761 www.agrium.com

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