Agrium shows $12 million profit for fourth quarter

Allen Baker, PNA contributing writer

Agrium Inc. had earnings of $12 million for the fourth quarter, a big improvement from a $80 million loss in the same quarter of 2001. The company, based in Calgary, had a $1 million profit in the third quarter.

For the year, the fertilizer maker broke even, after a 2001 loss of $49 million. Despite its Canadian base, the company’s results are reported in U.S. dollars.

Nitrogen fertilizer market strengthening

Agrium’s Nikiski fertilizer plant ran at 73 percent of capacity in the fourth quarter as the dispute continued over Unocal’s contract to provide gas to the plant it sold to Agrium in September 2000.

The company did obtain some gas from other companies during the quarter to make up some of the Unocal shortfall. Agrium filed a lawsuit against Unocal in June over the supply issue.

The company expects North American fertilizer sales to grow in spring due to an increase in grain prices and the expectation of more normal weather, which should help prices.

Sales in the fourth quarter were $538 million, up 8 percent from $499 a year ago. The sales figure was $466 million for the third quarter, which is usually slow.

For the year, sales were $2.20 billion, up 1 percent from the 2001 number.