May 09, 2013 at 07:00 AM EDT
Agrium Reports Strong First Quarter Results
Announces share repurchase of up to 5 percent

CALGARY, ALBERTA -- (Marketwired) -- 05/09/13 -- ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX: AGU) (NYSE: AGU) announced today consolidated net earnings ("net earnings") of $141-million ($0.94 diluted earnings per share) for the first quarter of 2013, compared with net earnings of $155-million in the first quarter of 2012 ($0.97 diluted earnings per share).

The 2013 first quarter results included a $16-million ($0.09 diluted earnings per share) share-based payments expense. Excluding this item, net earnings would have been $153-million ($1.03 diluted earnings per share).(1)

"The strength in Agrium's first quarter results clearly demonstrates the benefits and synergies derived from our integrated strategy as we delivered a record $351-million in Adjusted EBITDA(2) for the first quarter. This was supported by Wholesale and Retail achieving their second highest first quarter EBITDA on record, despite the late start to the spring season across North America. The continuation of cold, wet weather in April is likely to result in a somewhat compressed spring application season this year. However, we still expect excellent demand for crop inputs in the first half of 2013 given positive grower sentiment and the strength in the agricultural fundamentals. We also generated $355-million in operating cash flow this quarter, an excellent result for a quarter that is traditionally our slowest seasonally," said Mike Wilson, Agrium President and CEO.

Agrium is providing guidance for the second quarter of 2013 of $4.60 to $5.40 diluted earnings per share. This excludes derivative gains or losses and share-based payments expense in our estimated second quarter results.(3)

Normal Course Issuer Bid

Agrium's Board of Directors has authorized the repurchase of up to 5 percent of its currently issued and outstanding common shares through a Normal Course Issuer Bid (the "Bid") subject to regulatory approvals, including approval from the Toronto Stock Exchange.

"This repurchase program is another example of Agrium's continuing commitment to providing strong total shareholder returns, as well as our confidence in the outlook for our business. We believe that we can continue to deliver value-added growth across the value chain, while at the same time delivering significant returns of capital to shareholders in the form of both dividends and share repurchases," said Mr. Wilson.

The Bid is anticipated to commence in May 2013. The shares purchased under the bid will be cancelled. Agrium presently has a total of approximately 149 million shares outstanding. The timing and exact number of shares purchased will be determined at Agrium's discretion. All repurchases will be made pursuant to applicable regulatory requirements, will be made on the open market and are expected to be funded with cash from operations.


(1) Realized and unrealized gains on derivative financial instruments
    (including natural gas and foreign exchange) were offset by an
    associated loss on foreign exchange related to the Glencore/Viterra
    transaction. First quarter effective tax rate of 27 percent used for
    adjusted diluted earnings per share calculation.
(2) Adjusted EBITDA is defined as earnings before finance costs, income
    taxes, depreciation and amortization ("EBITDA") and before finance
    costs, income taxes, depreciation and amortization of joint ventures.
(3) See disclosure in the section "Outlook, Key Risks and Uncertainties" in
    our 2013 first quarter Management's Discussion and Analysis and
    additional assumptions outlined on the following page.

MANAGEMENT'S DISCUSSION AND ANALYSIS

May 9, 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 first quarter of 2013 (three months ended March 31, 2013) are against results for the first quarter of 2012 (three months ended March 31, 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 May 9, 2013 and should be read in conjunction with the consolidated interim financial statements for the three months ended March 31, 2013 and 2012, and the annual MD&A 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, pursuant to the authority delegated to it by the Board of Directors this disclosure. No update is provided where an item is not material or there has been no material change from the discussion in our annual MD&A. Forward-Looking Statements are outlined after the Outlook, Key Risks and Uncertainties section of this MD&A.

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


--  North America weather patterns will support normal spring applications;

--  Wholesale realized selling prices through the second quarter of 2013
    will approximate current benchmark prices except for selling prices on
    volumes already committed under programs;

--  North America Wholesale anticipated sales volumes are over 70 percent
    committed at fixed prices in the second quarter of 2013;

--  North America Wholesale produced fertilizer sales volumes will be higher
    than sales volumes in the same quarter of 2012;

--  Capacity utilization for Wholesale's North American facilities is
    expected to be 90 percent in the second quarter of 2013 compared to 88
    percent in the same quarter of 2012;

--  Retail North America fertilizer sales volumes will be higher than in the
    same quarter of 2012;

--  Retail North America fertilizer margin percentages will be lower than
    the margin percentages realized in the second quarter of 2012;

--  The average North American realized gas price will not deviate
    significantly from approximately $3.95 per MMBtu;

--  Guidance issued excluding the second quarter effects of:

    --  Share-based payments

    --  Gains or losses on hedge positions

    --  Results of the pending acquisition of Viterra's retail agri-business

2013 First Quarter Operating Results

CONSOLIDATED NET EARNINGS

Effective January 1, 2013, Agrium adopted IFRS 11 Joint Arrangements whereby the classification and accounting of our investment in Profertil S.A. ("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(1) has been added to show our results before finance costs, income taxes, depreciation and amortization of our joint ventures.

Agrium's 2013 first quarter consolidated net earnings ("net earnings") were $141-million, or $0.94 diluted earnings per share, compared to net earnings of $155-million, or $0.97 diluted earnings per share, for the same quarter of 2012.


Financial Overview

----------------------------------------------------------------------------
                                            Three months ended March 31,
(millions of U.S. dollars, except per
 share amounts and where noted)             2013    2012   Change  % Change
----------------------------------------------------------------------------
Sales                                      3,224   3,571     (347)      (10)
----------------------------------------------------------------------------
Gross profit                                 716     785      (69)       (9)
----------------------------------------------------------------------------
Expenses                                     484     536      (52)      (10)
----------------------------------------------------------------------------
Earnings before finance costs and income
 taxes ("EBIT")                              232     249      (17)       (7)
----------------------------------------------------------------------------
Net earnings                                 141     155      (14)       (9)
----------------------------------------------------------------------------
Diluted earnings per share                  0.94    0.97    (0.03)       (3)
----------------------------------------------------------------------------
Effective tax rate (%)                        27      29      N/A        (2)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sales

Sales decreased by $347-million to $3.2-billion for the first quarter of 2013 compared to the first quarter of 2012 which is comprised of:


--  Retail sales decreased by 13 percent to $2.1-billion compared to the
    first quarter of 2012 largely due to colder weather and a more typical
    spring season compared to a historically early spring season in the same
    quarter of last year;
--  Wholesale sales decreased slightly to $1.1-billion in the first quarter
    of 2013 from $1.2-billion in the first quarter of 2012 caused by weaker
    international phosphate prices coupled with lower product purchased for
    resale sales prices and volumes; and
--  Advanced Technologies ("AAT") sales remained steady during the first
    quarter of 2013 at $133-million compared to $135-million in the same
    period last year.

Gross Profit

Our gross profit for the first quarter of 2013 was $716-million, a decrease of $69-million compared to $785-million in the first quarter of 2012. Performance for the first quarter of 2013 compared to the first quarter of 2012 includes the following:


--  Retail's gross profit decreased by $51-million for the first quarter of
    2013 compared to the first quarter of 2012 driven by a later spring
    season from colder weather patterns; and
--  Wholesale's gross profit declined by $18-million to $328-million for the
    first quarter of 2013, compared to the first quarter of 2012,
    predominantly resulting from lower phosphate margins.

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

Expenses

Expenses decreased $52-million for the first quarter of 2013 compared to the first quarter of 2012 and consists of the following:


--  A $48-million favorable change in share-based payments expense, with
    $16-million in share-based payments expense in the first quarter of 2013
    versus $64-million in the first quarter of 2012; and
--  Other expenses decreased by $45-million, largely due to realized and
    unrealized gains on foreign exchange derivatives related to our advance
    of funds to Glencore International plc ("Glencore") to acquire the
    majority of the Agri-products Business of Viterra Inc. ("Viterra"),
    compared to realized losses in the first quarter of 2012. Additionally,
    there was a favorable change in environmental remediation and asset
    retirement obligations due to additional expenses incurred in the first
    quarter of 2012 with no corresponding increase in 2013.

The above decreases were partially offset by a $39-million increase in Retail selling expenses driven by increased operating costs and depreciation and amortization expense resulting from acquisitions of Retail locations in 2012 (see section "Retail" for further discussion).

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


----------------------------------------------------------------------------
                                                       Three months ended
                                                           March 31,
(millions of U.S. dollars)                                 2013        2012
----------------------------------------------------------------------------
Realized (gain) loss on derivative financial
 instruments                                                (14)         12
----------------------------------------------------------------------------
Unrealized (gain) loss on derivative financial
 instruments                                                 (7)          1
----------------------------------------------------------------------------
Interest income                                             (15)        (16)
----------------------------------------------------------------------------
Foreign exchange loss                                        18           -
----------------------------------------------------------------------------
Environmental remediation and asset retirement
 obligations                                                  1          12
----------------------------------------------------------------------------
Bad debt expense                                              5           8
----------------------------------------------------------------------------
Potash profit and capital tax                                 4           5
----------------------------------------------------------------------------
Other                                                        (6)          9
----------------------------------------------------------------------------
                                                            (14)         31
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Effective Tax Rate

The effective tax rate was 27 percent for the first quarter of 2013 compared to 29 percent for the same period last year. The decrease in rate is due to lower income earned in high taxed jurisdictions in 2013.

Retail

Retail's 2013 first quarter sales were $2.1-billion, a decrease of 13 percent compared to sales of $2.5-billion reported in the same period last year. The decrease was primarily due to a return, comparatively, to a more average seasonal weather pattern in North America than was seen in 2012, when the spring planting season began approximately one month ahead of normal, as well as the impact of severe heat and drought conditions in Australia in the first quarter of 2013. Gross profit was $376-million, compared to the $427-million achieved in the same period last year. Retail reported EBITDA of $25-million in the first quarter of 2013, compared to the record $101-million reported in the first quarter of last year and equal to the second highest first quarter on record of $25-million in 2011.

Crop nutrient sales were $802-million this quarter, compared to $1.0-billion in the first quarter of 2012. The decrease was due to a 23 percent decline in North American crop nutrient sales volumes, as demand in North America returned to a more typical seasonal pattern compared to the same period last year. Gross profit for crop nutrients was $121-million this quarter, a decrease of $34-million compared to the $155-million reported in the first quarter of 2012. Total crop nutrient margins as a percentage of sales were 15 percent in the first quarter of 2013, in-line with the same quarter last year.

Crop protection sales were $786-million in the first quarter of 2013, compared to the $834-million in sales reported in the same period last year. The decrease in sales was driven by lower overall volumes, resulting from the same weather-related factors impacting crop nutrient sales in North America and Australia. Total crop protection gross profit this quarter was $128-million, an increase of $5-million over the $123-million reported in the first quarter of 2012. The increase in gross profit was supported by an increased margin rate in Australia and higher proportional sales volumes of our proprietary crop protection products, as compared to the same period last year. Total crop protection margins as a percentage of sales were 16 percent this quarter, compared to 15 percent in the same period last year.

Seed sales were $285-million in the first quarter of 2013, down from $316-million in the first quarter last year. However, gross profit was $44-million this quarter, in-line with the first quarter of 2012, resulting from demand for higher-margin varieties of seed in response to the drought conditions experienced in the U.S. Cornbelt during 2012. Total seed margins as a percentage of sales were 15 percent in the first quarter of 2013, compared to 14 percent in the same quarter last year.

Sales of merchandise in the first quarter of 2013 were $120-million, compared to $130-million in the same period last year. Gross profit for this product line was $22-million this quarter, similar to the $23-million reported in the first quarter of 2012.

Services and other sales were $146-million this quarter, compared to the $136-million reported in the first quarter of 2012. Gross profit was $61-million in the first quarter of 2013, compared to $82-million for the same period last year. The decrease in gross profit this quarter is primarily attributable to weaker markets for the agency businesses, which are predominantly livestock and wool in our Australian operations, and less application services in North America due to unfavorable weather.

Retail selling expenses for the first quarter of 2013 were $389-million, an increase of $39-million compared to the $350-million reported in the first quarter of last year. The majority of this variance is related to the operating costs and depreciation of retail locations acquired in 2012. Given that the majority of these acquisitions were made in North America, the earnings profile for these locations will be predominantly weighted in the second and fourth quarters of the year. Selling expenses as a percentage of sales were 18.2 percent in the first quarter of 2013, which was a return to a more normal level for a first quarter, compared to the unusually low 14.3 percent reported in the first quarter last year.

Wholesale

Wholesale's 2013 first quarter sales were $1.1-billion, down slightly from the $1.2-billion reported in the same quarter last year. Gross profit was $328-million this quarter, compared to $346-million in the first quarter of 2012. Wholesale reported EBITDA of $375-million in the first quarter of 2013, which represented the second highest EBITDA on record for a first quarter and an increase over the $363-million in the same period last year. Wholesale's Adjusted EBITDA, defined as EBITDA before finance costs, income taxes, depreciation, and amortization of our joint ventures (predominantly related to our 50 percent ownership in the Profertil nitrogen facility) was $384-million this quarter, compared to the $362-million reported in the same period last year. Wholesale's solid results this quarter were supported by higher sales volumes and margins for nitrogen and strong volumes for potash, which were offset by lower pricing for both potash and phosphate products.

Nitrogen gross profit in the first quarter of 2013 was $173-million, a 12 percent increase over the same quarter last year. Nitrogen sales volumes were 746,000 tonnes in the first quarter of 2013, up 2 percent from the same period last year as a result of stronger sales of both urea and nitrogen solutions. This was partially offset by lower ammonia sales volumes, which reflected the impact of unfavorable weather on demand for the spring application season. Realized sales prices for ammonia, nitrates and nitrogen solutions were all stronger than the first quarter last year, while urea was in-line with the same period in 2012. Nitrogen cost of product sold was $279 per tonne this quarter, higher than the $264 per tonne reported in the first quarter of 2012 due primarily to higher natural gas costs. Our average nitrogen gross margins were $231 per tonne this quarter, compared to $213 per tonne in the same period last year.

Agrium's average natural gas cost in cost of product sold was $3.33/MMBtu this quarter ($3.54/MMBtu including the impact of realized losses on natural gas derivatives), compared to $2.51/MMBtu for the same period in 2012 ($3.11/MMBtu including the impact of realized losses on natural gas derivatives). Hedging gains or losses are included in other expenses and not cost of product sold, thus not being part of the calculation of gross profit. The U.S. benchmark (NYMEX) natural gas price for the first quarter of 2013 was $3.35/MMBtu, compared to $2.77/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.28/MMBtu discount to NYMEX in the first quarter of 2013, comparable to the $0.25/MMBtu differential that existed in the first quarter of 2012.

Potash gross profit for the first quarter of 2013 was $84-million, slightly below the $87-million reported in the same quarter last year. The marginal decrease was driven by lower benchmark and realized sales prices which were largely offset by stronger demand and sales volumes in both the domestic and international markets. Domestic sales volumes were 198,000 tonnes this quarter, compared to 162,000 tonnes in the first quarter of 2012. Similarly, international sales volumes increased to 180,000 tonnes, compared to 117,000 tonnes in the same period last year due primarily to new contracts with India and China being signed. Potash cost of product sold was $183 per tonne this quarter, slightly lower than the $184 per tonne reported in the first quarter of 2012. Gross margin on a per tonne basis was $221 in the first quarter of 2013, compared to the $313 per tonne realized during the same quarter in 2012.

Phosphate gross profit was $37-million in the first quarter of 2013, compared to $63-million in the same quarter last year. This decrease was due primarily to lower realized sales prices and higher costs. Realized phosphate sales prices were $698 per tonne this quarter, a decrease from $780 per tonne in the same period last year, due to weaker global market conditions. Phosphate cost of product sold was $537 per tonne in the first quarter of 2013, compared to $520 per tonne in the same period last year. The increase in cost of product sold was primarily due to higher rock costs in the period as a result of the impending closure of the Kapuskasing mine and the use of imported rock at our Redwater facility. Phosphate sales volumes were 232,000 tonnes in the first quarter of 2013, down slightly from 243,000 tonnes in the first quarter last year due to the later start of spring. On a per tonne basis, gross margin in the first quarter of 2013 decreased to $161 per tonne, compared to $260 per tonne in the same period last year.

Product purchased for resale gross profit was $6-million this quarter, compared to $11-million in the first quarter of 2012. The decrease was primarily due to lower sales volumes and margins as a result of the delayed spring season. Gross profit on ammonium sulfate was similar to the same period last year, as slightly lower volumes were partially offset by higher per tonne margins this quarter.

Wholesale expenses in the first quarter of 2013 were $1-million, compared to $17-million in the first quarter of 2012. The decrease in expenses this quarter was driven primarily by an $11-million increase in mark-to-market gains on natural gas derivatives, resulting from the increase in benchmark natural gas prices.

Advanced Technologies

AAT gross profit was $26-million in the first quarter of 2013, an increase of 24 percent over the $21-million reported in the same period last year. EBITDA was $6-million in the first quarter, a significant increase over the $2-million reported in the same period last year. The year-over-year improvement was primarily due to stronger Environmentally Smart Nitrogen ("ESN") volumes and margins. Incremental production at our New Madrid facility, following the expansion project completed in the second half of 2012, contributed to the increased volumes. This more than offset the impact of the delayed start to the spring application season, compared to the early start last year.

Other

EBITDA for our Other non-operating business unit for the first quarter of 2013 was a loss of $64-million, compared to a loss of $128-million for the first quarter of 2012. The favorable change was primarily driven by a $48-million decrease in share-based payments expense, where there was a $16-million charge in the first quarter of 2013 compared to a $64-million charge in the same quarter of 2012. This was largely caused by a slight depreciation of our share price during the first quarter of 2013 versus a larger appreciation of our share price during the first quarter of 2012.

FINANCIAL CONDITION

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


----------------------------------------------------------------------------
(millions of U.S.   March December
 dollars, except      31,      31,      $      %   Explanation of the change
 as noted)           2013     2012 Change Change   in balance
----------------------------------------------------------------------------
Current assets
  Cash and cash       585      658    (73)   (11%) See discussion under the
   equivalents                                     section "Liquidity and
                                                   Capital Resources"
----------------------------------------------------------------------------
  Accounts          2,395    2,224    171      8%  Increased Retail North
   receivable                                      American and Australian
                                                   trade receivables and
                                                   vendor rebates due to
                                                   seasonality of sales and
                                                   collections
----------------------------------------------------------------------------
  Income taxes        103       32     71    222%  Canadian and U.S. tax
   receivable                                      payments made exceeded
                                                   the first quarter tax
                                                   provision for Canada and
                                                   the U.S.
----------------------------------------------------------------------------
  Inventories       4,604    3,094  1,510     49%  Seasonal Retail inventory
                                                   build-up in preparation
                                                   for the spring season
----------------------------------------------------------------------------
  Advance on        1,774    1,792    (18)    (1%) -
   acquisition of
   Viterra Inc.
----------------------------------------------------------------------------
  Prepaid             544      740   (196)   (26%) Drawdown of prepaid
   expenses and                                    inventory as Retail took
   deposits                                        delivery of product in
                                                   anticipation of the
                                                   spring season
----------------------------------------------------------------------------
Current
 liabilities
  Short-term debt   1,370    1,314     56      4%  Increased European
                                                   facilities for working
                                                   capital needs
----------------------------------------------------------------------------
  Accounts          5,259    3,479  1,780     51%  Retail inventory
   payable                                         purchases and customer
                                                   prepayments made in
                                                   anticipation of the
                                                   spring season
----------------------------------------------------------------------------
  Income taxes          -      137   (137)  (100%) Final payment of the 2012
   payable                                         Canadian taxes in the
                                                   first quarter of 2013
----------------------------------------------------------------------------
  Current portion     478      518    (40)    (8%) -
   of long-term
   debt
----------------------------------------------------------------------------
  Current portion     103      108     (5)    (5%) -
   of other
   provisions
----------------------------------------------------------------------------
Working capital     2,795    2,984   (189)    (6%)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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:


----------------------------------------------------------------------------
                                               Three months ended March 31,
(millions of U.S. dollars)                         2013      2012    Change
----------------------------------------------------------------------------
Cash provided by operating activities               355       634      (279)
----------------------------------------------------------------------------
Cash used in investing activities                  (382)     (273)     (109)
----------------------------------------------------------------------------
Cash (used in) provided by financing
 activities                                         (39)       21       (60)
----------------------------------------------------------------------------
Effect of exchange rate changes on cash and
 cash equivalents                                    (7)        5       (12)
----------------------------------------------------------------------------
(Decrease) increase in cash and cash
 equivalents                                        (73)      387      (460)
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The sources and uses of cash for the three months ended March 31, 2013 compared to the three months ended March 31, 2012 are summarized below:


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities - Drivers behind the $279-million
 source of cash decrease
----------------------------------------------------------------------------
Use of cash    - $249-million decrease in cash flow from non-cash working
               capital. The decrease was primarily driven by a significant
               increase in inventory offset by a lower increase in
               receivables during the first three months of 2013 versus the
               first three months of 2012.
----------------------------------------------------------------------------
Cash used in investing activities - Drivers behind the $109-million use of
 cash increase
----------------------------------------------------------------------------
Source of cash - $35-million decrease for acquisitions due to fewer Retail
               tuck-in acquisitions occurring during the first three months
               of 2013 versus the first three months of 2012.
----------------------------------------------------------------------------
Use of cash    - $137-million increase in capital expenditures primarily
               related to the Vanscoy potash expansion project.
----------------------------------------------------------------------------
Cash (used in) provided by financing activities - Drivers behind the $60-
 million use of cash increase
----------------------------------------------------------------------------
Use of cash    - $39-million increase in dividends paid during the first
               three months of 2013 as compared to the first three months of
               2012 resulting from more than doubling the dividends declared
               in December 2012 compared to those declared in December 2011.
               - $41-million repayment of long-term debt during the first
               three months of 2013.
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Capital Expenditures
------------------------------------------------------------------------
                                                         March 31,
(millions of U.S. dollars)                                2013      2012
------------------------------------------------------------------------
Sustaining capital                                          98       124
------------------------------------------------------------------------
Investing capital                                          248        85
------------------------------------------------------------------------
Total                                                      346       209
------------------------------------------------------------------------
------------------------------------------------------------------------

Our investing capital expenditures increased in the first quarter of 2013 compared to the first quarter of 2012 due to continued activity on the Vanscoy potash expansion project.

Short-term Debt

Our short-term debt at March 31, 2013 is summarized as follows:


----------------------------------------------------------------------------
(millions of U.S. dollars)                        Total Unutilized  Utilized
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Multi-jurisdictional facility expiring 2016       1,600        529     1,071
----------------------------------------------------------------------------
European facilities expiring 2013                   335         94       241
----------------------------------------------------------------------------
South American facilities expiring 2013 -
 2014                                                79         21        58
----------------------------------------------------------------------------
                                                  2,014        644     1,370
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding letters of credit                                  119
----------------------------------------------------------------------------
Remaining capacity available                                   525
----------------------------------------------------------------------------
----------------------------------------------------------------------------

OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares at April 30, 2013 was approximately 149 million. At April 30, 2013, the number of shares issuable pursuant to stock options outstanding (issuable assuming full conversion, where each option granted can be exercised for one common share) was approximately nil.


SELECTED QUARTERLY INFORMATION (i)

----------------------------------------------------------------------------
(millions of U.S. dollars,              2013    2012    2012    2012    2012
except per share amounts)                 Q1      Q4      Q3      Q2      Q1
----------------------------------------------------------------------------
Sales                                  3,224   3,157   2,832   6,772   3,571
----------------------------------------------------------------------------
Gross profit                             716     987     739   1,851     785
----------------------------------------------------------------------------
Net earnings from continuing
 operations                              141     354     129     860     155
----------------------------------------------------------------------------
Net earnings                             141     354     129     860     155
----------------------------------------------------------------------------
Earnings per share from continuing
 operations
----------------------------------------------------------------------------
 -basic                                 0.94    2.34    0.80    5.44    0.97
----------------------------------------------------------------------------
 -diluted                               0.94    2.34    0.80    5.44    0.97
----------------------------------------------------------------------------
Earnings per share
----------------------------------------------------------------------------
 -basic                                 0.94    2.34    0.80    5.44    0.97
----------------------------------------------------------------------------
 -diluted                               0.94    2.34    0.80    5.44    0.97
----------------------------------------------------------------------------
----------------------------------------------------------------------------


SELECTED QUARTERLY INFORMATION (i)

----------------------------------------------------------------------------
(millions of U.S. dollars,                    2011         2011         2011
except per share amounts)                       Q4           Q3           Q2
----------------------------------------------------------------------------
Sales                                        3,177        3,141        6,198
----------------------------------------------------------------------------
Gross profit                                 1,045          888        1,675
----------------------------------------------------------------------------
Net earnings from continuing
 operations                                    327          293          728
----------------------------------------------------------------------------
Net earnings                                   193          293          718
----------------------------------------------------------------------------
Earnings per share from continuing
 operations
----------------------------------------------------------------------------
 -basic                                       2.05         1.86         4.61
----------------------------------------------------------------------------
 -diluted                                     2.04         1.85         4.60
----------------------------------------------------------------------------
Earnings per share
----------------------------------------------------------------------------
 -basic                                       1.20         1.86         4.55
----------------------------------------------------------------------------
 -diluted                                     1.20         1.85         4.54
----------------------------------------------------------------------------
----------------------------------------------------------------------------

(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

As described in our annual MD&A included in our 2012 Annual Report, we have agreed to purchase certain agri-products assets of Viterra from Glencore which acquired Viterra on December 17, 2012. Our purchase price, subject to adjustments, for the agri-products assets is Cdn$1.775-billion, including Viterra's 34 percent interest in a nitrogen facility located in Medicine Hat. On April 30, 2013, CF Industries Holdings Inc. ("CF"), holder of a 66 percent interest in the Medicine Hat nitrogen facility, acquired Viterra's 34 percent interest from Glencore (the "CF transaction"). Following closing of the CF transaction, we received Cdn$939-million. This is subject to adjustment for final determinations of amounts in accordance with our agreement with Glencore. Our acquisition of the agri-products assets from Viterra is subject to regulatory approval which we expect to obtain late in the second quarter or early in the third quarter of 2013. Refer to note 4 of the Summarized Notes to the Consolidated Interim Financial Statements for further information.

NORMAL COURSE ISSUER BID

Agrium's Board of Directors has authorized a normal course issuer bid under which it may purchase for cancellation up to 5 percent of its currently issued and outstanding common shares subject to regulatory approvals, including approval by the Toronto Stock Exchange. Refer to note 10 of the Summarized Notes to the Consolidated Interim 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 EBIT, EBITDA and Adjusted EBITDA. We consider EBIT, 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. Similarly, these measures should not be used as alternatives to net earnings as determined in accordance with IFRS.

EBIT is presented on our Consolidated Statements of Operations and is classified as an additional IFRS measure.

The following table is a reconciliation of EBIT, EBITDA and Adjusted EBITDA to net earnings as determined in accordance with IFRS:


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                                             Three months ended
                                               March 31, 2013
                                --------------------------------------------
(millions of U.S. dollars)        Retail  Wholesale  AAT Other Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA                       25        384    6   (64)         351
----------------------------------------------------------------------------
Equity accounted joint ventures:
----------------------------------------------------------------------------
  Finance costs and income taxes       -          7    -     -            7
----------------------------------------------------------------------------
  Depreciation and amortization        -          2    -     -            2
----------------------------------------------------------------------------
EBITDA                                25        375    6   (64)         342
----------------------------------------------------------------------------
Depreciation and amortization         53         48    6     3          110
----------------------------------------------------------------------------
EBIT                                 (28)       327    -   (67)         232
----------------------------------------------------------------------------
Finance costs related to long-
 term debt                                                              (22)
----------------------------------------------------------------------------
Other finance costs                                                     (18)
----------------------------------------------------------------------------
Income taxes                                                            (51)
----------------------------------------------------------------------------
Net earnings                                                            141
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
                                             Three months ended
                                               March 31, 2012
                                --------------------------------------------
(millions of U.S. dollars)         Retail Wholesale AAT  Other Consolidated
----------------------------------------------------------------------------
Adjusted EBITDA                       101       362   2   (128)         337
----------------------------------------------------------------------------
Equity accounted joint ventures:
----------------------------------------------------------------------------
  Finance costs and income taxes        -        (3)  -      -           (3)
----------------------------------------------------------------------------
  Depreciation and amortization         -         2   -      -            2
----------------------------------------------------------------------------
EBITDA                                101       363   2   (128)         338
----------------------------------------------------------------------------
Depreciation and amortization          44        34   7      4           89
----------------------------------------------------------------------------
EBIT                                   57       329  (5)  (132)         249
----------------------------------------------------------------------------
Finance costs related to long-
 term debt                                                              (22)
----------------------------------------------------------------------------
Other finance costs                                                     (10)
----------------------------------------------------------------------------
Income taxes                                                            (62)
----------------------------------------------------------------------------
Net earnings                                                            155
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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 on Supplemental Information 6, Accompanying Notes to Supplemental Information 5. Return on operating capital employed, return on capital employed, and average non-cash working capital to sales presented in Supplemental Information 5 are measures classified as additional IFRS financial measures, 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. 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 March 31, 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

The fundamentals for crop input demand remain strong, but cold and wet weather across most of North America and Europe this spring has resulted in a delayed spring application season in these regions. Excessive moisture and cool temperatures in the first quarter of 2013 have also delayed winter crop development, potentially limiting winter wheat crop yields in Europe. In the U.S., analysts expect that the cold weather received in the Southern Plains may negatively impact wheat yields. Additionally, drought conditions in Australia are expected to impact wheat and other crop yields there. While global crop prices have declined in recent months, particularly as soybean and corn crops in South America matured with higher acreage and good crop yields, grower cash margins remain at historically high levels and crop input costs remain at very attractive levels relative to crop prices.

Looking ahead in 2013, we expect the robust fundamentals to support strong demand for crop inputs as growers seek to increase crop yields through utilizing top seed genetics, crop protection products and crop nutrients. U.S. corn and soybean area is projected to be a record for the seventh consecutive year in 2013, supporting strong demand for seed. Demand for crop protection products, most notably fungicides, is projected to improve in 2013 under more normal growing conditions this summer. Depending on delays in crop development, crop protection applications may be delayed, but a compressed season may support demand for custom application services and could push demand for some products and services into the third quarter.

Nitrogen prices have declined over the past two months, driven in part by a delayed start to the spring application season in the Northern Hemisphere. In the U.S., urea buyers were well-positioned entering the spring season, although the compressed season could lead to increased in-season demand for urea and UAN, displacing pre-plant ammonia. Indian demand is expected to continue to be strong in 2013/14, but will rely on the rainfall during the monsoon season. Analysts are also projecting that Brazil will import a record volume of urea in 2013. Chinese urea exports will be an important driver in the second half of 2013. Chinese exports will depend on Chinese domestic market conditions, raw material costs and global demand, but are expected to be similar to slightly higher in the second half of 2013 than the same period last year. There were a few new urea export projects scheduled to come on stream in the first half of 2013, but all have experienced delays. Projects in Algeria have been stalled due to delays in the issuance of export permits, while technical problems have delayed the start of the plant in Abu Dhabi.

Solid demand for MAP and DAP in the Americas have kept the supply/demand balance in check despite India having only made minor spot purchases in 2013. Now that the Nutrient Based Subsidy ("NBS") levels have been set for the 2013/14 agricultural year in India, there should be better visibility for buyers to contract supply. Thus the potential exists for improved Indian import demand by late in the second quarter of 2013, although total Indian imports in 2013/14 may decline from 2012/13 levels. The Chinese government loosened export restrictions on phosphates for 2013, meaning exporters will have an extra 15 days to export product under the low tax window, which runs from May 16 through October 15 in 2013. However, Chinese DAP/MAP exports in 2013 are projected to be relatively flat to 2012 levels.

Potash prices have been relatively stable over the past couple of months. Brazilian potash imports were up 24 percent year-over-year in the first quarter of 2013. North American potash shipments have also been robust to begin 2013, but the application season has been delayed due to the wet weather. Chinese potash imports trailed 2012 levels by 12 percent for the first quarter of 2013. Analysts expect Chinese imports to increase in 2013 from 2012 levels, but there remains uncertainty as new supply agreements will have to be completed for the second half of the year. Indian buyers have purchased a large proportion of their 2013/14 needs, but the timing on deliveries and further purchases will depend on the demand growth within India. Globally, supplies of potash remain comfortable. The Fertilizer Institute reported that North American potash inventories in March 2013 were 4 percent lower than the same month in 2012, but remained 34 percent above the five year average.

Forward-Looking Statements

Certain statements and other information included in this MD&A constitute "forward-looking information" 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; 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 affect 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 proposed 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 Agrium's proposed acquisition of the Agri-products Business of Viterra including that completion of the acquisition of the assets proposed to be purchased by Agrium as well as the timing thereof is dependent on the receipt of the necessary regulatory approvals and the satisfaction of other conditions precedent to closing and there can be no assurances that such regulatory approvals will be received, and that the other conditions to closing will be satisfied, in a timely fashion, or at all; potential liabilities associated with the assets proposed to be assumed by Agrium, which may not be known to Agrium at this time, due in part, to the fact that the nature of the transaction did not allow for Agrium to complete customary due diligence prior to entering into the agreement to purchase the assets.

The purpose of our guidance for the second 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 1st Quarter Conference Call will be available in a listen-only mode beginning Thursday, May 9, 2013 at 9:30 a.m. MT (11:30 a.m. ET). Please visit the following website: www.agrium.com.


AGRIUM INC.
Consolidated Statements of Operations
(Millions of U.S. dollars, except per share amounts)
(Unaudited)


                                                   Three months ended
                                                       March 31,
----------------------------------------------------------------------------
                                                       2013            2012
                                                                   Restated
                                                                    (note 3)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Sales                                                 3,224           3,571
----------------------------------------------------------------------------
Cost of product sold                                  2,508           2,786
----------------------------------------------------------------------------
Gross profit                                            716             785
----------------------------------------------------------------------------
Expenses
----------------------------------------------------------------------------
 Selling                                                409             369
----------------------------------------------------------------------------
 General and administrative                             102             157
----------------------------------------------------------------------------
 Earnings from associates and joint ventures            (13)            (21)
----------------------------------------------------------------------------
 Other (income) expenses (note 5)                       (14)             31
----------------------------------------------------------------------------
Earnings before finance costs and income
 taxes                                                  232             249
----------------------------------------------------------------------------
 Finance costs related to long-term debt                 22              22
----------------------------------------------------------------------------
 Other finance costs                                     18              10
----------------------------------------------------------------------------
Earnings before income taxes                            192             217
----------------------------------------------------------------------------
 Income taxes                                            51              62
----------------------------------------------------------------------------
Net earnings                                            141             155
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:
----------------------------------------------------------------------------
 Equity holders of Agrium                               141             153
----------------------------------------------------------------------------
 Non-controlling interest                                 -               2
----------------------------------------------------------------------------
Net earnings                                            141             155
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Earnings per share attributable to equity
 holders of Agrium (note 6)
----------------------------------------------------------------------------
 Basic earnings per share                              0.94            0.97
----------------------------------------------------------------------------
 Diluted earnings per share                            0.94            0.97
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Comprehensive Income
(Millions of U.S. dollars)
(Unaudited)


                                                         Three months ended
                                                             March 31,
----------------------------------------------------------------------------
                                                             2013       2012
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Net earnings                                                  141        155
----------------------------------------------------------------------------
 Other comprehensive (loss) income
----------------------------------------------------------------------------
  Items that may be reclassified to earnings
----------------------------------------------------------------------------
   Foreign currency translation
----------------------------------------------------------------------------
    (Losses) gains                                            (24)        35
----------------------------------------------------------------------------
   Associates and joint ventures                                1          -
----------------------------------------------------------------------------
 Other comprehensive (loss) income                            (23)        35
----------------------------------------------------------------------------
Comprehensive income                                          118        190
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:
----------------------------------------------------------------------------
 Equity holders of Agrium                                     118        189
----------------------------------------------------------------------------
 Non-controlling interest                                       -          1
----------------------------------------------------------------------------
Comprehensive income                                          118        190
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Cash Flows
(Millions of U.S. dollars)
(Unaudited)


                                                        Three months ended
                                                            March 31,
----------------------------------------------------------------------------
                                                            2013       2012
                                                                   Restated
                                                                    (note 3)
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Operating
----------------------------------------------------------------------------
 Net earnings                                                141        155
----------------------------------------------------------------------------
 Items not affecting cash
----------------------------------------------------------------------------
  Depreciation and amortization                              110         89
----------------------------------------------------------------------------
  Earnings from associates and joint ventures                (13)       (21)
----------------------------------------------------------------------------
  Share-based payments                                        16         64
----------------------------------------------------------------------------
  Unrealized (gain) loss on derivative financial
   instruments                                                (7)         1
----------------------------------------------------------------------------
  Unrealized foreign exchange loss (gain)                     16         (6)
----------------------------------------------------------------------------
  Deferred income taxes                                        -          6
----------------------------------------------------------------------------
  Other                                                        7         12
----------------------------------------------------------------------------
 Dividends from associates and joint ventures                  1          1
----------------------------------------------------------------------------
 Net changes in non-cash working capital                      84        333
----------------------------------------------------------------------------
Cash provided by operating activities                        355        634
----------------------------------------------------------------------------
Investing
----------------------------------------------------------------------------
 Acquisitions, net of cash acquired                          (34)       (69)
----------------------------------------------------------------------------
 Capital expenditures                                       (346)      (209)
----------------------------------------------------------------------------
 Investments in associates and joint ventures                  -         10
----------------------------------------------------------------------------
 Purchase of investments                                      (8)        (2)
----------------------------------------------------------------------------
 Other                                                        (8)        (6)
----------------------------------------------------------------------------
 Net changes in non-cash working capital                      14          3
----------------------------------------------------------------------------
Cash used in investing activities                           (382)      (273)
----------------------------------------------------------------------------
Financing
----------------------------------------------------------------------------
 Short-term debt                                              65         43
----------------------------------------------------------------------------
 Long-term debt issued                                        10          7
----------------------------------------------------------------------------
 Repayment of long-term debt                                 (41)         -
----------------------------------------------------------------------------
 Dividends paid                                              (75)       (36)
----------------------------------------------------------------------------
 Shares issued                                                 2          7
----------------------------------------------------------------------------
Cash (used in) provided by financing activities              (39)        21
----------------------------------------------------------------------------
Effect of exchange rate changes on cash and cash
 equivalents                                                  (7)         5
----------------------------------------------------------------------------
(Decrease) increase in cash and cash equivalents             (73)       387
----------------------------------------------------------------------------
Cash and cash equivalents - beginning of period (note
 3)                                                          658      1,287
----------------------------------------------------------------------------
Cash and cash equivalents - end of period                    585      1,674
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Included in operating activities
----------------------------------------------------------------------------
 Interest paid                                                56         44
----------------------------------------------------------------------------
 Interest received                                            15         16
----------------------------------------------------------------------------
 Income taxes paid                                           255         64
----------------------------------------------------------------------------

----------------------------------------------------------------------------
Included in investing activities
----------------------------------------------------------------------------
 Interest paid                                                 9          4
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.

AGRIUM INC.
Consolidated Balance Sheets
(Millions of U.S. dollars)
(Unaudited)


                                          March 31, December 31,  January 1,
----------------------------------------------------------------------------
                                    2013        2012        2012        2012
                                            Restated    Restated    Restated
                                            (note 3)    (note 3)    (note 3)
----------------------------------------------------------------------------
ASSETS
----------------------------------------------------------------------------
Current assets
----------------------------------------------------------------------------
 Cash and cash equivalents           585       1,674         658       1,287
----------------------------------------------------------------------------
 Accounts receivable               2,395       2,555       2,224       1,941
----------------------------------------------------------------------------
 Income taxes receivable             103          89          32         138
----------------------------------------------------------------------------
 Inventories                       4,604       3,802       3,094       2,913
----------------------------------------------------------------------------
 Advance on acquisition of
  Viterra Inc. (note 4)            1,774           -       1,792           -
----------------------------------------------------------------------------
 Prepaid expenses and
  deposits                           544         309         740         636
----------------------------------------------------------------------------
 Assets of discontinued
  operations                           -          37           -          70
----------------------------------------------------------------------------
                                  10,005       8,466       8,540       6,985
----------------------------------------------------------------------------
Property, plant and
 equipment (note 10)               3,705       2,683       3,484       2,335
----------------------------------------------------------------------------
Intangibles                          616         693         636         678
----------------------------------------------------------------------------
Goodwill                           2,356       2,282       2,349       2,277
----------------------------------------------------------------------------
Investments in associates
 and joint ventures                  645         563         627         522
----------------------------------------------------------------------------
Other assets                         113          47          99          97
----------------------------------------------------------------------------
Deferred income tax assets            89          66          70          63
----------------------------------------------------------------------------
                                  17,529      14,800      15,805      12,957
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND
 SHAREHOLDERS' EQUITY
----------------------------------------------------------------------------
Current liabilities
----------------------------------------------------------------------------
 Short-term debt (note 7)          1,370         246       1,314         200
----------------------------------------------------------------------------
 Accounts payable                  5,259       4,394       3,479       2,927
----------------------------------------------------------------------------
 Income taxes payable                  -           1         137          64
----------------------------------------------------------------------------
 Current portion of long-
  term debt (note 7)                 478          50         518          20
----------------------------------------------------------------------------
 Current portion of other
  provisions                         103          78         108          68
----------------------------------------------------------------------------
 Liabilities of discontinued
  operations                           -          35           -          53
----------------------------------------------------------------------------
                                   7,210       4,804       5,556       3,332
----------------------------------------------------------------------------
Long-term debt (note 7)            2,078       2,040       2,069       2,062
----------------------------------------------------------------------------
Provisions for post-
 employment benefits                 185         195         184         192
----------------------------------------------------------------------------
Other provisions                     422         472         413         299
----------------------------------------------------------------------------
Other liabilities                     78          60          79          58
----------------------------------------------------------------------------
Deferred income tax
 liabilities                         594         604         584         586
----------------------------------------------------------------------------
                                  10,567       8,175       8,885       6,529
----------------------------------------------------------------------------
Shareholders' equity
----------------------------------------------------------------------------
 Share capital                     1,892       2,001       1,890       1,994
----------------------------------------------------------------------------
 Retained earnings                 5,019       4,573       4,955       4,420
----------------------------------------------------------------------------
 Accumulated other
  comprehensive income (note
  9)                                  48          46          71          10
----------------------------------------------------------------------------
 Equity holders of Agrium          6,959       6,620       6,916       6,424
----------------------------------------------------------------------------
 Non-controlling interest              3           5           4           4
----------------------------------------------------------------------------
 Total equity                      6,962       6,625       6,920       6,428
----------------------------------------------------------------------------
                                  17,529      14,800      15,805      12,957
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Shareholders' Equity
(Millions of U.S. dollars, except share data)
(Unaudited)

                                                                Accumulated
                                                                      other
                     Millions of                   Retained   comprehensive
                   common shares Share capital     earnings  income (note 9)
----------------------------------------------------------------------------
December 31, 2011            158         1,994        4,420              10
----------------------------------------------------------------------------
Net earnings                   -             -          153               -
----------------------------------------------------------------------------
Other comprehensive
 income, net of tax
----------------------------------------------------------------------------
 Foreign currency
  translation                  -             -            -              36
----------------------------------------------------------------------------
Comprehensive
 income, net of tax            -             -          153              36
----------------------------------------------------------------------------
Share-based payment
 transactions                  -             7            -               -
----------------------------------------------------------------------------
March 31, 2012               158         2,001        4,573              46
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
December 31, 2012            149         1,890        4,955              71
----------------------------------------------------------------------------
Net earnings                   -             -          141               -
----------------------------------------------------------------------------
Other comprehensive
 income (loss), net
 of tax
----------------------------------------------------------------------------
 Foreign currency
  translation                  -             -            -             (24)
----------------------------------------------------------------------------
 Associates and
  joint ventures               -             -            -               1
----------------------------------------------------------------------------
Comprehensive
 income (loss), net
 of tax                        -             -          141             (23)
----------------------------------------------------------------------------
Dividends                      -             -          (75)              -
----------------------------------------------------------------------------
Non-controlling
 interest
 transactions                  -             -           (2)              -
----------------------------------------------------------------------------
Share-based payment
 transactions                  -             2            -               -
----------------------------------------------------------------------------
March 31, 2013               149         1,892        5,019              48
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying
 notes.


AGRIUM INC.
Consolidated Statements of Shareholders' Equity
(Millions of U.S. dollars, except share data)
(Unaudited)

                                                    Non-
                    Equity holders of        controlling              Total
                               Agrium           interest             equity
----------------------------------------------------------------------------
December 31, 2011               6,424                  4              6,428
----------------------------------------------------------------------------
Net earnings                      153                  2                155
----------------------------------------------------------------------------
Other comprehensive
 income, net of tax
----------------------------------------------------------------------------
 Foreign currency
  translation                      36                 (1)                35
----------------------------------------------------------------------------
Comprehensive
 income, net of tax               189                  1                190
----------------------------------------------------------------------------
Share-based payment
 transactions                       7                  -                  7
----------------------------------------------------------------------------
March 31, 2012                  6,620                  5              6,625
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
December 31, 2012               6,916                  4              6,920
----------------------------------------------------------------------------
Net earnings                      141                  -                141
----------------------------------------------------------------------------
Other comprehensive
 income (loss), net
 of tax
----------------------------------------------------------------------------
 Foreign currency
  translation                     (24)                 -                (24)
----------------------------------------------------------------------------
 Associates and
  joint ventures                    1                  -                  1
----------------------------------------------------------------------------
Comprehensive
 income (loss), net
 of tax                           118                  -                118
----------------------------------------------------------------------------
Dividends                         (75)                 -                (75)
----------------------------------------------------------------------------
Non-controlling
 interest
 transactions                      (2)                (1)                (3)
----------------------------------------------------------------------------
Share-based payment
 transactions                       2                  -                  2
----------------------------------------------------------------------------
March 31, 2013                  6,959                  3              6,962
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying
 notes.

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 May 8, 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/       Description
Interpretation
----------------------------------------------------------------------------
IFRS 10         Consolidated Financial Statements implements a single model
                based on 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 requires us as a party to a joint
                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 Interests in Other Entities will require us to
                disclose information that allows users to evaluate the
                nature, impact of and risks associated with our interests in
                joint arrangements, associates and other entities.
----------------------------------------------------------------------------
IFRS 13         Fair Value Measurement provides a single set of requirements
                to be 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 provides users with a clearer picture of
                the commitments resulting from defined benefit plans (DBPs)
                by eliminating the corridor approach, requiring presentation
                of gains and losses related to DBPs in other comprehensive
                income, and adding enhanced disclosure requirements.
----------------------------------------------------------------------------
IFRS 7          Offsetting Financial Assets and Liabilities contains new
                disclosure requirements for amounts offset or subject to
                master netting arrangements.
----------------------------------------------------------------------------
IFRIC 20        Stripping Costs in the Production Phase of a Surface Mine
                establishes when the 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.
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Date and method of   Impact
adoption
----------------------------------------------------------------------------
January 1, 2013;     There has been no material impact on adoption.
retrospectively
----------------------------------------------------------------------------
January 1, 2013; in  See note 3 for impact on adoption.
accordance with IFRS
11
----------------------------------------------------------------------------
January 1, 2013      We will add disclosures about our interests in other
                     entities on adoption in our annual financial
                     statements.
----------------------------------------------------------------------------
January 1, 2013;     There has been no material impact on adoption.
prospectively
----------------------------------------------------------------------------
January 1, 2013      We eliminated the corridor approach on adoption of
                     IFRS. The balance of requirements have been adopted in
                     2013 with no material impact. We will provide new
                     disclosures required by IAS 19 in our annual financial
                     statements.
----------------------------------------------------------------------------
January 1, 2013      There has been no material impact on adoption.
----------------------------------------------------------------------------
January 1, 2013      There has been no material impact on adoption.
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
Impact of IFRS 11 on net earnings                           ended March 31,
----------------------------------------------------------------------------
                                                                       2012
----------------------------------------------------------------------------
Decrease in sales                                                       (58)
----------------------------------------------------------------------------
Decrease in cost of product sold                                        (43)
----------------------------------------------------------------------------
Decrease in gross profit                                                (15)
----------------------------------------------------------------------------
Decrease in selling and general and administrative expenses              (3)
----------------------------------------------------------------------------
Increase in income taxes                                                  3
----------------------------------------------------------------------------
Increase in earnings from associates and joint ventures                 (15)
----------------------------------------------------------------------------
Impact on net earnings                                                    -
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Impact of IFRS 11 on assets
 and liabilities                              March 31, 2012
----------------------------------------------------------------------------
                                As previously
                                     reported    Adjustments     As restated
----------------------------------------------------------------------------
Current assets                          8,644           (178)          8,466
----------------------------------------------------------------------------
Property, plant and equipment           2,886           (203)          2,683
----------------------------------------------------------------------------
Investments in associates and
 joint ventures                           381            182             563
----------------------------------------------------------------------------
Other assets                               48             (1)             47
----------------------------------------------------------------------------
Current liabilities                     4,925           (121)          4,804
----------------------------------------------------------------------------
Long-term debt                          2,074            (34)          2,040
----------------------------------------------------------------------------
Other liabilities                          62             (2)             60
----------------------------------------------------------------------------
Deferred income tax
 liabilities                              647            (43)            604
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Cash and cash equivalents               1,752            (78)          1,674
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Impact of IFRS 11 on assets
 and liabilities                             December 31, 2012
----------------------------------------------------------------------------
                                As previously
                                     reported    Adjustments     As 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
----------------------------------------------------------------------------
----------------------------------------------------------------------------


Impact of IFRS 11 on assets
 and liabilities                              January 1, 2012
----------------------------------------------------------------------------
                                As previously
                                     reported    Adjustments     As restated
----------------------------------------------------------------------------
Current assets                          7,137           (152)          6,985
----------------------------------------------------------------------------
Property, plant and equipment           2,533           (198)          2,335
----------------------------------------------------------------------------
Investments in associates and
 joint ventures                           355            167             522
----------------------------------------------------------------------------
Current liabilities                     3,427            (95)          3,332
----------------------------------------------------------------------------
Long-term debt                          2,098            (36)          2,062
----------------------------------------------------------------------------
Other liabilities                          59             (1)             58
----------------------------------------------------------------------------
Deferred income tax
 liabilities                              637            (51)            586
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Cash and cash equivalents               1,346            (59)          1,287
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                               Three months
Impact of IFRS 11 on cash flows                             ended March 31,
----------------------------------------------------------------------------
                                                                       2012
----------------------------------------------------------------------------
Decrease in cash provided by operating activities                       (28)
----------------------------------------------------------------------------
Decrease in cash used in investing activities                             9
----------------------------------------------------------------------------
----------------------------------------------------------------------------

4. Business Acquisition

As described in our 2012 Annual Report, we have agreed to acquire certain agri-products assets of Viterra Inc. ("Viterra") from Glencore International plc ("Glencore") which acquired Viterra on December 17, 2012. Our purchase price, subject to adjustments, for the agri-products assets is Cdn$1.775-billion, including Viterra's 34 percent interest in a nitrogen facility located in Medicine Hat. On April 30, 2013, CF Industries Holdings Inc. ("CF"), holder of a 66 percent interest in the Medicine Hat facility, acquired Viterra's 34 percent interest from Glencore (the "CF transaction"). Following closing of the CF transaction, we received Cdn$939-million, which is subject to adjustment for final determinations of amounts in accordance with our agreement with Glencore. Our acquisition of the agri-products assets from Viterra is subject to regulatory approval.

As partial funding for Glencore's acquisition of Viterra, we advanced the Cdn$1.775-billion (U.S.$1.801-billion) purchase price to Glencore on December 12, 2012. The advance, adjusted for foreign exchange translation at March 31, 2013 is $1.774-billion (December 31, 2012 - $1.792-billion). We will apply the amount received from the CF transaction to reduce this advance. The advance is guaranteed by Glencore, secured by shares of Viterra, and does not bear interest. The advance is repayable by: i) the transfer of the agri-products assets to us or to third parties designated by us, in amounts allocated to the assets under our agreement with Glencore; and ii) cash payments for an adjustment to our purchase price of an amount equal to the after-tax operating cash flows from the business assets, working capital and other adjustments.

5. Other Expenses


                                                  Three months ended
Other expenses                                        March 31,
----------------------------------------------------------------------------
                                                      2013            2012
                                                           Restated (note 3)
----------------------------------------------------------------------------
Realized (gain) loss on derivative
 financial instruments                                 (14)              12
----------------------------------------------------------------------------
Unrealized (gain) loss on derivative
 financial instruments                                  (7)               1
----------------------------------------------------------------------------
Interest income                                        (15)             (16)
----------------------------------------------------------------------------
Foreign exchange loss                                   18                -
----------------------------------------------------------------------------
Environmental remediation and asset
 retirement obligations                                  1               12
----------------------------------------------------------------------------
Bad debt expense                                         5                8
----------------------------------------------------------------------------
Potash profit and capital tax                            4                5
----------------------------------------------------------------------------
Other                                                   (6)               9
----------------------------------------------------------------------------
                                                       (14)              31
----------------------------------------------------------------------------
----------------------------------------------------------------------------

6. Earnings per Share


                                                         Three months ended
Attributable to equity holders of Agrium                      March 31,
----------------------------------------------------------------------------
                                                              2013      2012
----------------------------------------------------------------------------
Numerator
----------------------------------------------------------------------------
 Net earnings for the period                                   141       153
----------------------------------------------------------------------------
Denominator (millions)
----------------------------------------------------------------------------
 Weighted average number of shares outstanding for basic
  and diluted earnings per share                               149       158
----------------------------------------------------------------------------
----------------------------------------------------------------------------

7. Debt


                                                                   December
                                                                   31, 2012
                                              March 31,            Restated
                                                 2013              (note 3)
----------------------------------------------------------------------------
                                        Total Unutilized  Utilized  Utilized
----------------------------------------------------------------------------
Short-term debt
----------------------------------------------------------------------------
Multi-jurisdictional facility
 expiring 2016                          1,600        529     1,071     1,100
----------------------------------------------------------------------------
European facilities expiring 2013         335         94       241       192
----------------------------------------------------------------------------
South American facilities expiring
 2013 - 2014                               79         21        58        22
----------------------------------------------------------------------------
                                        2,014        644     1,370     1,314
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding letters of credit                        119
------------------------------------------------------------------
Remaining capacity available                         525
------------------------------------------------------------------
------------------------------------------------------------------

Long-term debt
----------------------------------------------------------------------------
Floating rate bank loans due 2013 - 2015                      76        106
----------------------------------------------------------------------------
Floating rate bank loans due 2013                            460        460
----------------------------------------------------------------------------
7.7% debentures due 2017                                     100        100
----------------------------------------------------------------------------
6.75% debentures due 2019                                    500        500
----------------------------------------------------------------------------
3.15% debentures due 2022                                    500        500
----------------------------------------------------------------------------
7.8% debentures due 2027                                     125        125
----------------------------------------------------------------------------
7.125% debentures due 2036                                   300        300
----------------------------------------------------------------------------
6.125% debentures due 2041                                   500        500
----------------------------------------------------------------------------
Other                                                         18         21
----------------------------------------------------------------------------
                                                           2,579      2,612
----------------------------------------------------------------------------
Unamortized transaction costs                                (23)       (25)
----------------------------------------------------------------------------
Current portion of long-term debt                           (478)      (518)
----------------------------------------------------------------------------
                                                           2,078      2,069
----------------------------------------------------------------------------
----------------------------------------------------------------------------

8. Financial Instruments


Fair value of financial instruments           Level 1    Level 2      Total
----------------------------------------------------------------------------
March 31, 2013
----------------------------------------------------------------------------
Fair value through profit or loss
----------------------------------------------------------------------------
 Cash and cash equivalents                        585          -        585
----------------------------------------------------------------------------
 Foreign exchange derivative financial
  instruments                                      (1)         -         (1)
----------------------------------------------------------------------------
 Gas and power derivative financial
  instruments                                     (10)         7         (3)
----------------------------------------------------------------------------
Available for sale                                 41          -         41
----------------------------------------------------------------------------
March 31, 2012
----------------------------------------------------------------------------
Fair value through profit or loss
----------------------------------------------------------------------------
 Cash and cash equivalents                      1,674          -      1,674
----------------------------------------------------------------------------
 Foreign exchange derivative financial
  instruments                                       -         (1)        (1)
----------------------------------------------------------------------------
 Gas and power derivative financial
  instruments                                     (37)         8        (29)
----------------------------------------------------------------------------
Available for sale                                 24          -         24
----------------------------------------------------------------------------
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 March 31, 2013 (March 31, 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            March 31, 2013
----------------------------------------------------------------------------
                                                                    Carrying
                                                        Fair value     value
----------------------------------------------------------------------------
Long-term debt
----------------------------------------------------------------------------
 Debentures - amortized cost                                 2,309     2,025
----------------------------------------------------------------------------
 Floating rate debt - amortized cost                            53        53
----------------------------------------------------------------------------
                                                             2,362     2,078
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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
                    Available for                               accumulated
                             sale       Foreign    Associates         other
                        financial      currency     and joint comprehensive
                      instruments   translation      ventures        income
----------------------------------------------------------------------------
December 31, 2011              (1)           11             -            10
----------------------------------------------------------------------------
Gains                           -            36             -            36
----------------------------------------------------------------------------
March 31, 2012                 (1)           47             -            46
----------------------------------------------------------------------------
----------------------------------------------------------------------------

----------------------------------------------------------------------------
December 31, 2012               -            74            (3)           71
----------------------------------------------------------------------------
(Losses) gains                  -           (24)            1           (23)
----------------------------------------------------------------------------
March 31, 2013                  -            50            (2)           48
----------------------------------------------------------------------------
----------------------------------------------------------------------------

10. Additional Information

Property, plant and equipment

During the three months ended March 31, 2013, we added $219-million to assets under construction at our Vanscoy Potash facility.

Dividends


                                  March 31,
----------------------------------------------------------------------------
                                    2013
----------------------------------------------------------------------------
               Declared                                  Paid to
--------------------------------------------------
Effective                   Per share       Total   Shareholders       Total
----------------------------------------------------------------------------
                                                     January 17,
December 14, 2012                0.50          NA           2013          75
----------------------------------------------------------------------------
February 22, 2013                0.50          75 April 18, 2013          NA
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Share capital

The Board of Directors granted 188,310 Performance Share Units on January 1, 2013 and 395,759 Tandem Stock Appreciation Rights with a grant price of $101.13 on February 25, 2013 to officers and employees.

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

Normal course issuer bid

Agrium's Board of Directors has authorized a normal course issuer bid under which it may purchase for cancellation up to 5 percent of its currently issued and outstanding common shares, subject to regulatory approvals, including approval from the TSX. 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. We anticipate the normal course issuer bid will commence in May 2013 and will expire after a twelve month period.

11. Operating Segments


                                                        Three months ended
                                                            March 31,
----------------------------------------------------------------------------
                                                                      2012
                                                            2013   Restated
                                                                    (note 3)
----------------------------------------------------------------------------
Sales
----------------------------------------------------------------------------
Retail
----------------------------------------------------------------------------
 Crop nutrients                                              802      1,035
----------------------------------------------------------------------------
 Crop protection products                                    786        834
----------------------------------------------------------------------------
 Seed                                                        285        316
----------------------------------------------------------------------------
 Merchandise                                                 120        130
----------------------------------------------------------------------------
 Services and other                                          146        136
----------------------------------------------------------------------------
                                                           2,139      2,451
----------------------------------------------------------------------------
Wholesale
----------------------------------------------------------------------------
 Nitrogen                                                    382        348
----------------------------------------------------------------------------
 Potash                                                      152        139
----------------------------------------------------------------------------
 Phosphate                                                   162        189
----------------------------------------------------------------------------
 Product purchased for resale                                352        398
----------------------------------------------------------------------------
 Ammonium sulfate and other                                   80         79
----------------------------------------------------------------------------
                                                           1,128      1,153
----------------------------------------------------------------------------
Advanced Technologies                                        133        135
----------------------------------------------------------------------------
Other                                                       (176)      (168)
----------------------------------------------------------------------------
                                                           3,224      3,571
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inter-segment sales
----------------------------------------------------------------------------
 Retail                                                        4          6
----------------------------------------------------------------------------
 Wholesale                                                   164        136
----------------------------------------------------------------------------
 Advanced Technologies                                         8         26
----------------------------------------------------------------------------
                                                             176        168
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Net earnings
----------------------------------------------------------------------------
 Retail                                                      (28)        57
----------------------------------------------------------------------------
 Wholesale                                                   327        329
----------------------------------------------------------------------------
 Advanced Technologies                                         -         (5)
----------------------------------------------------------------------------
 Other                                                       (67)      (132)
----------------------------------------------------------------------------
 Earnings before finance costs and income taxes              232        249
----------------------------------------------------------------------------
 Finance costs related to long-term debt                      22         22
----------------------------------------------------------------------------
 Other finance costs                                          18         10
----------------------------------------------------------------------------
 Earnings before income taxes                                192        217
----------------------------------------------------------------------------
 Income taxes                                                 51         62
----------------------------------------------------------------------------
Net earnings                                                 141        155
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                      March 31, December 31,
----------------------------------------------------------------------------
                                                                        2012
                                                                    Restated
                                                           2013     (note 3)
----------------------------------------------------------------------------
Total assets
----------------------------------------------------------------------------
 Retail                                                   9,701        8,338
----------------------------------------------------------------------------
 Wholesale                                                4,594        4,181
----------------------------------------------------------------------------
 Advanced Technologies                                      555          545
----------------------------------------------------------------------------
 Other                                                    2,679        2,741
----------------------------------------------------------------------------
                                                         17,529       15,805
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                AGRIUM INC.
                         Supplemental Information 1
                             Results by Segment
                   (Unaudited - millions of U.S. dollars)

                                       Three months ended March 31,
----------------------------------------------------------------------------
                                                   2013
----------------------------------------------------------------------------
                                                     Advanced
                               Retail Wholesale  Technologies  Other  Total
----------------------------------------------------------------------------
Sales - external                2,135       964           125      -  3,224
      - inter-segment               4       164             8   (176)     -
----------------------------------------------------------------------------
Total sales                     2,139     1,128           133   (176) 3,224
Cost of product sold            1,763       800           107   (162) 2,508
----------------------------------------------------------------------------
Gross profit                      376       328            26    (14)   716
----------------------------------------------------------------------------
Gross profit (%)                   18        29            20            22
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                           389        10            14     (4)   409
General and administrative         25        15            13     49    102
(Earnings) loss from associates
 and joint ventures                (1)      (14)            1      1    (13)
Other (income) expenses            (9)      (10)           (2)     7    (14)
----------------------------------------------------------------------------
EBIT (1)                          (28)      327             -    (67)   232
EBITDA (2)                         25       375             6    (64)   342
Adjusted EBITDA(2)                 25       384             6    (64)   351
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                       Three months ended March 31,
----------------------------------------------------------------------------
                                                 2012 (3)
----------------------------------------------------------------------------
                                                     Advanced
                               Retail Wholesale  Technologies  Other  Total
----------------------------------------------------------------------------
Sales - external                2,445     1,017           109      -  3,571
      - inter-segment               6       136            26   (168)     -
----------------------------------------------------------------------------
Total sales                     2,451     1,153           135   (168) 3,571
Cost of product sold            2,024       807           114   (159) 2,786
----------------------------------------------------------------------------
Gross profit                      427       346            21     (9)   785
----------------------------------------------------------------------------
Gross profit (%)                   17        30            16            22
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Selling                           350         9            13     (3)   369
General and administrative         30        11            13    103    157
Earnings from associates and
 joint ventures                    (2)      (16)           (1)    (2)   (21)
Other (income) expenses            (8)       13             1     25     31
----------------------------------------------------------------------------
EBIT (1)                           57       329            (5)  (132)   249
EBITDA (2)                        101       363             2   (128)   338
Adjusted EBITDA(2)                101       362             2   (128)   337
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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
                   (Unaudited - millions of U.S. dollars)

                                       Three months ended March 31,
----------------------------------------------------------------------------
                                       2013                 2012 (3)
----------------------------------------------------------------------------
                                      Cost of                Cost of
                                      product  Gross         product  Gross
                               Sales sold (1) profit  Sales sold (1) profit
----------------------------------------------------------------------------

Retail (2)
  Crop nutrients                 802      681    121  1,035      880    155
  Crop protection products       786      658    128    834      711    123
  Seed                           285      241     44    316      272     44
  Merchandise                    120       98     22    130      107     23
  Services and other             146       85     61    136       54     82
----------------------------------------------------------------------------
                               2,139    1,763    376  2,451    2,024    427
----------------------------------------------------------------------------
Wholesale
  Nitrogen                       382      209    173    348      193    155
  Potash                         152       68     84    139       52     87
  Phosphate                      162      125     37    189      126     63
  Product purchased for resale   352      346      6    398      387     11
  Ammonium sulfate and other      80       52     28     79       49     30
----------------------------------------------------------------------------
                               1,128      800    328  1,153      807    346
----------------------------------------------------------------------------
Advanced Technologies
  Turf and ornamental             69       58     11     79       66     13
  Agriculture                     64       49     15     56       48      8
----------------------------------------------------------------------------
                                 133      107     26    135      114     21
----------------------------------------------------------------------------
Other inter-segment
 eliminations                   (176)    (162)   (14)  (168)    (159)    (9)
----------------------------------------------------------------------------
Total                          3,224    2,508    716  3,571    2,786    785
----------------------------------------------------------------------------
----------------------------------------------------------------------------



Wholesale equity accounted
 joint venture results:
  Nitrogen                        39       24     15     36       24     12
  Product purchased for resale    31       30      1     23       22      1
----------------------------------------------------------------------------
                                  70       54     16     59       46     13
----------------------------------------------------------------------------
Total Wholesale including
 equity accounted joint
 ventures                      1,198      854    344  1,212      853    359
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Includes depreciation and amortization.
(2) International Retail sales were $566-million (2012 - $585-million) and
    gross profit was $98-million (2012 - $109-million) for the three months
    ended March 31.
(3) Restated for the application of IFRS 11 Joint Arrangements requiring
    equity accounting for joint ventures.

                                 AGRIUM INC.
                         Supplemental Information 3
                      Selected Volumes and Sales Prices
                                 (Unaudited)

                                          Three months ended March 31,
----------------------------------------------------------------------------
                                                      2013
----------------------------------------------------------------------------
                                                           Cost of
                                         Sales   Selling   product
                                        tonnes     price      sold    Margin
                                       (000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------
Retail
   Crop nutrients
     Domestic                            1,061       580
     International                         347       539
----------------------------------------------------------------------------
   Total crop nutrients                  1,408       570       484        86
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wholesale
  Nitrogen
    Domestic
      Ammonia                              193       606
      Urea                                 322       543
      Other                                231       386
----------------------------------------------------------------------------
  Total nitrogen                           746       510       279       231
----------------------------------------------------------------------------

  Potash
    Domestic                               198       473
    International                          180       327
----------------------------------------------------------------------------
  Total potash                             378       404       183       221
----------------------------------------------------------------------------

  Phosphate                                232       698       537       161
  Product purchased for resale             763       462       454         8
  Ammonium sulfate                          72       434       186       248
  Oher                                      94

----------------------------------------------------------------------------
Total Wholesale                          2,285       494       350       144
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Wholesale equity accounted joint
 venture results:
  Nitrogen
    International                           78       496       299       197
  Product purchased for resale              79       389       381         8
----------------------------------------------------------------------------
                                           157       442       340       102
----------------------------------------------------------------------------
Total Wholesale including equity
 accounted joint
ventures                                 2,442       490       349       141
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                 AGRIUM INC.
                         Supplemental Information 3
                      Selected Volumes and Sales Prices
                                 (Unaudited)

                                          Three months ended March 31,
----------------------------------------------------------------------------
                                                     2012 (1)
----------------------------------------------------------------------------
                                                           Cost of
                                         Sales   Selling   product
                                        tonnes     price      sold    Margin
                                       (000's) ($/tonne) ($/tonne) ($/tonne)
----------------------------------------------------------------------------
Retail
   Crop nutrients
     Domestic                            1,381       609
     International                         330       588
----------------------------------------------------------------------------
   Total crop nutrients                  1,711       605       514        91
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Wholesale
  Nitrogen
    Domestic
      Ammonia                              226       519
      Urea                                 271       542
      Other                                231       359
----------------------------------------------------------------------------
  Total nitrogen                           728       477       264       213
----------------------------------------------------------------------------

  Potash
    Domestic                               162       570
    International                          117       397
----------------------------------------------------------------------------
  Total potash                             279       497       184       313
----------------------------------------------------------------------------

  Phosphate                                243       780       520       260
  Product purchased for resale             828       482       469        13
  Ammonium sulfate                          86       420       199       221
  Oher                                      80

----------------------------------------------------------------------------
Total Wholesale                          2,244       514       360       154
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Wholesale equity accounted joint
 venture results:
  Nitrogen
    International                           77       474       313       161
  Product purchased for resale              61       371       352        19
----------------------------------------------------------------------------
                                           138       428       330        98
----------------------------------------------------------------------------
Total Wholesale including equity
 accounted joint
ventures                                 2,382       509       358       151
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Restated for the application of IFRS 11 Joint Arrangements requiring
    equity accounting for joint ventures.

                                 AGRIUM INC.
                         Supplemental Information 4
            Depreciation and Amortization in Cost of Product Sold
                   (Unaudited - millions of U.S. dollars)

                                                    Three months ended
                                                         March 31,
----------------------------------------------------------------------------
                                                         2013       2012 (1)
----------------------------------------------------------------------------

Retail                                                      1              1
----------------------------------------------------------------------------

Wholesale
  Nitrogen                                                 15             14
  Potash                                                   11              6
  Phosphate                                                14             12
  Ammonium sulfate and other                                1              1
----------------------------------------------------------------------------
                                                           41             33
----------------------------------------------------------------------------

Advanced Technologies                                       3              4
----------------------------------------------------------------------------

Total                                                      45             38
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(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
       (Unaudited - millions of U.S. dollars, unless otherwise stated)

                                       Rolling four quarters ended March 31,
----------------------------------------------------------------------------
                                                2013                    2012
----------------------------------------------------------------------------
                                        Consolidated            Consolidated
                                  Retail      Agrium      Retail  Agrium (2)
----------------------------------------------------------------------------
Return on operating capital
 employed (%)                         15          24          16          27
Return on capital employed
 (%)                                   8          17           8          18
Average non-cash working
 capital to sales (%)                 20          16          21          17
Operating coverage ratio (%)          72          49          72          49
EBITDA to sales (%)                    8          16           8          16


                                                March 31,
----------------------------------------------------------------------------
                                                2013                    2012
----------------------------------------------------------------------------
                                        Consolidated            Consolidated
                                  Retail      Agrium      Retail  Agrium (2)
----------------------------------------------------------------------------
Non-cash working capital           1,810       2,284       1,823       2,282


Domestic measures                      Rolling four quarters ended March 31,
----------------------------------------------------------------------------
                                    2013                    2012
----------------------------------------            ------------
                                  Retail                  Retail
----------------------------------------            ------------
Return on operating capital
 employed (%)                         21                      20
Return on capital employed
 (%)                                  10                      10
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

----------------------------------------------------------------------------
----------------------------------------------------------------------------
IFRS Financial Measure                        Definition
----------------------------------------------------------------------------
Average non-cash working Rolling four quarter average non-cash working
 capital to sales        capital divided by sales.
Operating coverage ratio Selling, general and administrative expenses,
                         earnings from associates and joint ventures and
                         other expenses, divided by gross profit.
Non-cash working capital Current assets less current liabilities, excluding
                         cash and cash equivalents, advance on acquisition
                         of Viterra Inc., short-term debt, current portion
                         of long-term debt and current assets and
                         liabilities of discontinued operations.
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                   Usefulness of Additional
                                                   or Non-IFRS Financial
                                 Definition        Measure
----------------------------------------------------------------------------
Additional IFRS Financial Measure
----------------------------------------------------------------------------
Return on operating      Last 12 months' EBIT less
 capital employed:       income taxes at a tax
 Consolidated Agrium     rate of 27 percent (2012
                         - 28 percent) divided by
                         rolling four quarter
                         average operating capital
                         employed. Operating
                         capital employed includes
                         non-cash working capital,
                         property, plant and
                         equipment, investments in Used to measure operating
                         associates and joint      performance and
                         ventures and other        efficiency of our capital
                         assets.                   allocation process.
Return on capital        Last 12 months' EBIT less
 employed: Consolidated  income taxes at a tax
 Agrium                  rate of 27 percent (2012
                         - 28 percent) divided by
                         rolling four quarter
                         average capital employed.
                         Capital employed includes Used to measure operating
                         operating capital         performance and
                         employed, intangibles and efficiency of our capital
                         goodwill.                 allocation process.
----------------------------------------------------------------------------
Non-IFRS Financial Measure
----------------------------------------------------------------------------
Return on operating      Last 12 months' EBIT less
 capital employed:       income taxes at a tax
 Retail, Retail domestic rate of 27 percent (2012
                         - 28 percent) divided by
                         rolling four quarter
                         average operating capital
                         employed. Operating
                         capital employed includes
                         non-cash working capital,
                         property, plant and
                         equipment, investments in Used to measure operating
                         associates and joint      performance and
                         ventures and other        efficiency of our capital
                         assets.                   allocation process.
Return on capital        Last 12 months' EBIT less
 employed: Retail,       income taxes at a tax
 Retail domestic         rate of 27 percent (2012
                         - 28 percent) divided by
                         rolling four quarter
                         average capital employed.
                         Capital employed includes Used to measure operating
                         operating capital         performance and
                         employed, intangibles and efficiency of our capital
                         goodwill.                 allocation process.
EBITDA to sales          Earnings (loss) before    Used to measure operating
                         finance costs, income     performance earnings and
                         taxes, depreciation and   cash flow we generate
                         amortization divided by   from each dollar of
                         sales.                    sales.
EBITDA                   Earnings (loss) before
                         finance costs, income
                         taxes, depreciation and   Used to measure operating
                         amortization.             performance.
Adjusted EBITDA          Earnings (loss) before
                         finance costs, income
                         taxes, depreciation and
                         amortization and before
                         finance costs, income
                         taxes, depreciation and
                         amortization of joint     Used to measure operating
                         ventures.                 performance.
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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.
Mark Thompson
Analyst, Investor Relations
(403) 225-7761
www.agrium.com

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