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Agrium Reports Third Quarter Results

CALGARY, ALBERTA -- (Marketwire) -- 11/07/12 --

ALL AMOUNTS ARE STATED IN U.S.$

Agrium Inc. (TSX:AGU) (NYSE:AGU) announced today consolidated net earnings ("net earnings") of $129-million ($0.80 diluted earnings per share) for the third quarter of 2012, compared to net earnings of $293-million reported in the third quarter of 2011 ($1.85 diluted earnings per share).

The 2012 third quarter results included a pre-tax share-based payment expense of $53-million ($0.23 diluted earnings per share). The third quarter results also included a non-recurring charge of $66-million ($0.29 diluted earnings per share) related to environmental remediation liabilities and a $5-million ($0.02 diluted earnings per share) charge associated with the closure of our Courtright facility announced on August 29, 2012. Excluding these items, net earnings would have been $215-million ($1.34 diluted earnings per share) for the third quarter of 2012.(1)

"Agrium's third quarter results demonstrated our competitive strengths in nitrogen and the ability of our Retail business to deliver solid earnings, even given the early spring season and after experiencing one of the worst droughts in U.S. history. Gross profit from our nitrogen business was the highest for a third quarter in our history, while Retail EBITDA(2) nearly matched the outstanding results reported in the third quarter of 2011. Our results this quarter were impacted by the downtime at our potash operations associated with our substantial potash mine expansion and a weaker potash market stemming from uncertainties from ongoing negotiations with India and China," said Mike Wilson, Agrium President and CEO. "Looking ahead, we are in an excellent position to continue to benefit from the robust agricultural fundamentals, as growers strive to make the most of the attractive crop price environment by optimizing their use of Agrium's line of crop inputs and services," added Mr. Wilson.

"Agrium has again recently demonstrated our commitment to returning capital to shareholders with a further doubling to our dividend and the successful completion of a significant share repurchase program. The increased dividend and Cdn$900-million substantial issuer bid are an indication of our confidence that the sector fundamentals and our integrated strategy will continue to deliver strong results for the benefit of shareholders. Agrium is committed to continuing to deliver value-added growth and we remain confident we can achieve our growth objectives while also continuing to grow our dividend over time," added Mr. Wilson.

Agrium is providing guidance for the fourth quarter of 2012 of $1.50 to $1.90 diluted earnings per share. This excludes hedging gains or losses and share-based payments expense in our estimated fourth quarter results.(3)

(1) Third quarter effective tax rate of 31 percent used for adjusted diluted earnings per share calculations.

(2) Earnings from continuing operations before finance costs, income taxes, depreciation and amortization. See disclosure under the heading "Non-IFRS Financial Measures" in the section "Management's Discussion and Analysis".

(3) See disclosure in the section "Outlook, Key Risks and Uncertainties" in our 2012 third quarter MD&A and additional assumptions in the section "Management's Discussion and Analysis".

MANAGEMENT'S DISCUSSION AND ANALYSIS

November 7, 2012

Unless otherwise noted, all financial information in this Management's Discussion and Analysis ("MD&A") is prepared using accounting policies in accordance with International Financial Reporting Standards ("IFRS") and is presented in accordance with International Accounting Standard 34 - Interim Financial Reporting. All comparisons of results for the third quarter of 2012 (three months ended September 30, 2012) are against results for the third quarter of 2011 (three months ended September 30, 2011). 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 Non-IFRS Financial Measures section of this MD&A.

The following interim MD&A is as of November 7, 2012 and should be read in conjunction with the consolidated interim financial statements for the three and nine months ended September 30, 2012 and 2011, and the annual MD&A included in our 2011 Annual Report to Shareholders to which our 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 press release.

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


--  Wholesale realized selling prices through the fourth quarter of 2012
    will approximate current benchmark prices except for selling prices on
    volumes already committed under programs; 
--  Wholesale produced fertilizer sales volumes will approximate sales
    volumes in the fourth quarter of 2011; 
--  Unfavourable weather patterns in Western Canada are expected to result
    in lower fourth quarter ammonia sales versus the same period last year; 
--  Capacity utilization for Wholesale's potash facility will be
    approximately 10 percent lower than the fourth quarter of 2011
    reflecting weak international potash demand; 
--  Retail North America fertilizer margin percentages will be slightly
    higher and chemical percentages slightly lower than the margin
    percentages realized in the fourth quarter of 2011; 
--  Retail North America fertilizer sales volumes will be at or slightly
    below volumes in the fourth quarter of 2011; 
--  The average North American realized gas price will not deviate
    significantly from approximately $3.40 per MMBtu; 
--  The effective tax rate for the fourth quarter of 2012 will approximate
    31 percent; 
--  Guidance issued excluding the fourth quarter effects of : 
    --  Share-based payments expenses or recoveries 
    --  Gains or losses on hedge positions 

2012 Third Quarter Operating Results

CONSOLIDATED NET EARNINGS

Agrium's 2012 third quarter consolidated net earnings ("net earnings") were $129-million, or $0.80 diluted earnings per share, compared to net earnings of $293-million, or $1.85 diluted earnings per share, for the same quarter of 2011. Net earnings for the first nine months of 2012 were $1,144-million, or $7.21 diluted earnings per share, compared to $1,182-million, or $7.48 diluted earnings per share for the first nine months of 2011.


Financial Overview                                                          
                                                                            
----------------------------------------------------------------------------
                            Three months ended            Nine months ended 
                                 September 30,                September 30, 
(millions of U.S.                                                           
 dollars, except per                                                        
 share amounts and                           %                            % 
 where noted)         2012  2011 Change Change    2012   2011 Change Change 
----------------------------------------------------------------------------
Sales                2,962 3,141   (179)    (6) 13,425 12,293  1,132      9 
----------------------------------------------------------------------------
Gross profit           798   888    (90)   (10)  3,468  3,288    180      5 
----------------------------------------------------------------------------
Expenses               580   440    140     32   1,780  1,533    247     16 
----------------------------------------------------------------------------
Net earnings from                                                           
 continuing                                                                 
 operations before                                                          
 finance costs and                                                          
 income taxes                                                               
 ("EBIT")              218   448   (230)   (51)  1,688  1,755    (67)    (4)
----------------------------------------------------------------------------
Net earnings from                                                           
 continuing                                                                 
 operations            129   293   (164)   (56)  1,144  1,181    (37)    (3)
----------------------------------------------------------------------------
Net earnings           129   293   (164)   (56)  1,144  1,182    (38)    (3)
----------------------------------------------------------------------------
Diluted earnings per                                                        
 share from                                                                 
 continuing                                                                 
 operations           0.80  1.85  (1.05)   (57)   7.21   7.48  (0.27)    (4)
----------------------------------------------------------------------------
Diluted earnings per                                                        
 share                0.80  1.85  (1.05)   (57)   7.21   7.48  (0.27)    (4)
----------------------------------------------------------------------------
Effective tax rate                                                          
 (%)                    31    28    N/A      3      28     28    N/A      - 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Sales

Retail sales decreased by approximately 9 percent to $1.8-billion compared to the third quarter of 2011 and increased approximately 12 percent to $9.5-billion compared to the first nine months of 2011, respectively. 2012 third quarter sales decreased due to the early harvest and dry conditions throughout the U.S. versus the positive impact in 2011 of a late spring which pushed sales into the third quarter. Wholesale sales decreased slightly from 2011 to $1.1-billion and $4.1-billion, respectively, for the third quarter and the first nine months. Advanced Technologies ("AAT") sales during the third quarter and for the first nine months of 2012 remained steady at $125-million and increased 20 percent to $438-million, respectively, compared to the same periods last year. This is attributed to acquisition activity in the second half of 2011.

Gross Profit

Our consolidated gross profit for the third quarter of 2012 decreased by $90-million compared to the third quarter of 2011. Consolidated gross profit for the first nine months of 2012 increased by $180-million compared to the same period last year. Highlights for the third quarter and first nine months of 2012 include the following:


--  Retail's gross profit decreased $60-million for the third quarter but
    increased $135-million for the first nine months of 2012, compared to
    2011, respectively. Crop protection products experienced an 11 percent
    decrease for the quarter compared to 2011, due to lower sales volumes;
    and 
--  Wholesale's gross profit decreased 10 percent to $358-million for the
    third quarter of 2012, compared to the third quarter of 2011, which
    resulted from a combination of factors including potash fixed costs
    being recorded directly to cost of product sold due to lower production
    volumes, lower phosphate sales prices and offset by increased nitrogen
    sales volumes and prices. 

Expenses

The $140-million increase in expenses for the third quarter of 2012 compared to the third quarter of 2011 is mainly comprised of:


--  A $99-million unfavorable change in share-based payments expense, with
    $53-million in share-based payments expense in the third quarter of 2012
    versus a recovery of $46-million in the third quarter of 2011, (see
    section "Other" for further discussion); and 
--  An increase in environmental provisions of $61-million for legacy
    Canadian mines and our Conda sites. 

These expense increases were partially offset by a $22-million decrease in Retail selling expenses (see section "Retail" for further discussion).

The following table is a summary of our other expenses (income) for the third quarter and first nine months of 2012 and 2011:


----------------------------------------------------------------------------
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
(millions of U.S. dollars)               2012      2011      2012      2011 
----------------------------------------------------------------------------
Realized loss on derivative                                                 
 financial instruments                      2         1        26        76 
----------------------------------------------------------------------------
Unrealized gain on derivative                                               
 financial instruments                     (3)       (2)      (17)      (47)
----------------------------------------------------------------------------
Interest income                           (31)      (24)      (66)      (57)
----------------------------------------------------------------------------
Foreign exchange loss (gain)                4         -        16       (42)
----------------------------------------------------------------------------
Environmental remediation and asset                                         
 retirement obligations                    66         5        78        29 
----------------------------------------------------------------------------
Bad debt expense                            6         6        30        33 
----------------------------------------------------------------------------
Potash profit and capital tax               -         7        13        33 
----------------------------------------------------------------------------
Other                                       2         7         2        32 
----------------------------------------------------------------------------
                                           46         -        82        57 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Effective Tax Rate

The effective tax rate was 31 percent for the third quarter of 2012 compared to 28 percent for the same period last year due to a higher proportion of income earned in higher taxed jurisdictions in 2012. The effective tax rate was 28 percent for the first nine months of 2012 and is comparable to the effective tax rate of 28 percent for the same period last year.

BUSINESS SEGMENT PERFORMANCE

Retail

Retail's 2012 third quarter sales were $1.8-billion, compared with the record third quarter sales of $2.0-billion in the same period last year. The decrease was due to the early season and the severe drought in the U.S., which impacted late-season demand for some crop input products and services as compared to last year's strong third quarter, which resulted from a late spring in 2011. On a year-to-date basis, sales reached $9.5-billion, an increase of $1.0-billion over the same period last year. Gross profit was the second highest on record for a third quarter at $438-million, behind the $498-million earned in the third quarter last year. Retail reported earnings from continuing operations before finance costs, income taxes, depreciation and amortization ("EBITDA") of $121-million in the third quarter of 2012, compared to $135-million in the third quarter of last year, as a result of lower earnings from our North American and South American operations. EBITDA from our Australian operations increased once again this quarter to $15-million, as compared to the $3-million reported in the same period last year, while EBITDA on a year-to-date basis has improved to $74-million, an increase of 91 percent over the first nine months last year.

Crop nutrient sales were $634-million this quarter, compared to $692-million in the third quarter of 2011. The $58-million decrease was mainly attributable to a 10 percent decline in total crop nutrient volumes across our Retail operations, which resulted from the early season as well as dry conditions that impacted fertilizer applications in key growing regions throughout the U.S. North American nutrient volumes were 11 percent lower this quarter, as compared to the same period last year. Gross profit for crop nutrients was $111-million this quarter, compared to the $124-million reported in the third quarter of 2011. Total crop nutrient margins were 18 percent in the third quarter of 2012, in-line with the same quarter last year.

Crop protection sales were $872-million in the third quarter of 2012, an 8 percent decrease from the $943-million in sales for the same period last year. Total crop protection gross profit this quarter was $202-million, compared to the $226-million reported in the third quarter of 2011. Similar to crop nutrients, the decrease in 2012 third quarter sales and gross profit was primarily due to the early spring season and dry conditions this year. Crop protection product margins as a percentage of sales were 23 percent for the third quarter of 2012, down 1 percent from the third quarter last year. Margins in our Australian operations improved to 20 percent this quarter, up 4 percent from the third quarter last year.

Seed sales were $56-million in the third quarter of 2012, compared to $85-million in the third quarter last year. Gross profit was $28-million this quarter, compared to $30-million in the third quarter of 2011. The decrease in both sales and gross profit was partially due to the early spring season, which pulled third quarter seed sales into the first half of 2012. Dry conditions across much of the U.S. Corn belt also resulted in slightly lower double crop soybean acres, as well as some delayed wheat plantings in the Western Plains states during the third quarter.

Sales of merchandise in the third quarter of 2012 were $105-million, compared to $134-million in the same period last year. Gross profit for this product line was $17-million this quarter, slightly below the $19-million reported in the third quarter of 2011.

Services and other sales were $167-million this quarter, a $10-million increase over the $157-million reported in the third quarter of 2011. Gross profit was $80-million in the third quarter of 2012, compared to $99-million for the same period last year. The decrease in gross profit this quarter was partially attributable to a lower proportion of sales from higher-margin application services, as compared to the same period last year.

Retail selling expenses for the third quarter of 2012 were $368-million, down $22-million from the $390-million reported in the third quarter last year. The decrease was due mainly to lower payroll expenses and performance incentives, which resulted from lower sales this quarter, as compared to the same period in 2011. Selling expenses as a percentage of sales were 20 percent in the third quarter of 2012, up by 1 percent over the same period last year. On a year-to-date basis, selling expenses as a percentage of sales were 13 percent, 1 percent lower than the same period in 2011.

Wholesale

Wholesale's 2012 third quarter sales were $1.1-billion, slightly lower than the $1.2-billion reported in the same quarter last year. Gross profit for this quarter was $358-million, compared to $397-million for the third quarter of 2011. Wholesale's EBITDA of $376-million in the third quarter of 2012 was 14 percent lower than the same period last year. The decline in earnings was primarily due to the previously announced eight week planned turnaround at the Vanscoy potash facility related to our brownfield expansion project and a longer than expected restart.

Nitrogen gross profit in the third quarter of 2012 was a record $271-million, an increase of 53 percent over the $177-million reported in the same quarter last year. These strong results were due to a combination of higher sales volumes, stronger realized sales prices, as well as lower input costs. Realized sales prices for ammonia were higher, while urea pricing remained relatively flat compared to the same period in 2011. Total nitrogen sales volumes were 1.1 million tonnes, up 30 percent from the same period last year due to higher operating rates and stronger demand for both domestic and South American urea as a result of attractive crop prices and favorable growing conditions in Canada and Argentina. Nitrogen cost of product sold was $261 per tonne this quarter, lower than the $280 per tonne reported in the third quarter of 2011 due primarily to lower natural gas costs this quarter. Our average nitrogen margins were $256 per tonne this quarter, compared to $217 per tonne in the same period last year. The MOPCO nitrogen facility, in which we have a 26 percent equity investment, was restarted in mid-September 2012, however there is a one quarter lag in reporting equity earnings from this investment.

Agrium's average natural gas cost in cost of product sold was $2.98/MMBtu this quarter ($3.21/MMBtu including the impact of realized losses on natural gas derivatives), compared to $3.95/MMBtu for the same period in 2011 ($4.13/MMBtu including the impact of realized losses on natural gas derivatives). The average natural gas cost this quarter was impacted by a $2/MMBtu surcharge on Argentine gas that the government imposed earlier this year. Hedging gains or losses on all gas derivatives are not taken into account for the calculation of gross profit and are included in other expenses and therefore not included in cost of product sold. The U.S. benchmark (NYMEX) natural gas price for the third quarter of 2012 was $2.81/MMBtu, compared to $4.19/MMBtu in the same quarter last year. The AECO (Alberta) basis differential was a $0.62/MMBtu discount to NYMEX in the third quarter of 2012, significantly higher than the $0.33/MMBtu differential that existed in the third quarter of 2011.

Potash gross profit for the third quarter of 2012 was $23-million, compared to $102-million in the same quarter last year. The decrease was due primarily to lower sales volumes of 160,000 tonnes, compared to 347,000 tonnes in the third quarter of 2011, as well as lower realized sales prices in both domestic and international markets. The lower volumes were a result of the eight week planned turnaround at the Vanscoy facility related to our brownfield expansion project and some additional mining related challenges experienced this quarter. Production tonnes for the plant were 151,000 in the third quarter, compared to 372,000 in the third quarter of 2011. Domestic sales were constrained by supply, while international sales commitments were met with purchased potash product. International sales demand was lower than the same period last year, as a result of weaker demand from India and China. Potash cost of product sold was $363 per tonne this quarter, compared to $188 per tonne in the third quarter of 2011. The increase was due to the impact of fixed costs recorded directly to cost of product sold because of lower produced volumes. The resulting gross margin on a per tonne basis was $140 in the third quarter of 2012, compared to the $292 per tonne realized during the same quarter in 2011.

Phosphate gross profit was $47-million in the third quarter of 2012, compared to $82-million in the same quarter last year. This decrease was due primarily to lower realized sales prices, resulting from a more balanced market relative to the tight supply/demand situation that existed in the third quarter of 2011, as well as higher input costs. Realized sales prices were $703 per tonne this quarter compared to $784 per tonne in the same period last year. Phosphate cost of product sold was $519 per tonne in the third quarter of 2012, as compared to $487 per tonne in the same period last year. The increase in cost of product sold was due to higher rock and sulphur costs, compared to the same period last year. On a per tonne basis, gross margin in the third quarter of 2012 decreased to $184 per tonne, compared to $297 per tonne in the same period last year.

Wholesale's Other product category, which is primarily comprised of ammonium sulfate and Rainbow granulated products, achieved gross profit of $17-million in the third quarter of 2012, compared to $15-million in the same period last year.

Product purchased for resale gross profit was down $21-million this quarter, compared to the third quarter of 2011. The decrease in gross profit was due to a combination of lower year-over-year margins on regular purchase for resale business globally and the purchase of potash from third party suppliers in order to meet international shipments that are normally filled through manufactured product. These potash purchases allowed a greater proportion of our manufactured product to be directed toward higher return domestic sales.

Wholesale expenses in the third quarter of 2012 were $46-million, compared to $4-million in the third quarter of 2011. A non-recurring environmental charge of $18-million was accrued in this quarter related to a recent review of environmental reclamation liabilities at our Conda facility. The year-over-year comparison was also impacted by a $17-million recovery in insurance in the third quarter of 2011.

Advanced Technologies

AAT gross profit was $28-million in the third quarter of 2012, an increase of $4-million over the $24-million reported in the same period last year. This was driven primarily by higher gross profit from stronger sales and margins from Environmentally Smart Nitrogen ("ESN"), attributable to increased demand resulting from the attractive crop price environment.

EBITDA was $4-million in the third quarter of 2012, exceeding the $3-million reported in the same period last year. EBITDA this quarter was impacted by a $5-million charge in other expenses associated with the closure of our Courtright facility during the third quarter of 2012.

Other

EBITDA for our Other non-operating business unit for the third quarter of 2012 was a loss of $157-million, compared to a loss of $30-million for the third quarter of 2011. The unfavorable change was primarily driven by:


--  A $99-million increase in share-based payments expense, where there was
    a $53-million charge in the third quarter of 2012 compared to a $46-
    million recovery in the same quarter of 2011. The increase in share-
    based payments expense was largely caused by appreciation of our share
    price during the third quarter of 2012 compared to a decline in the
    share price in the same period for 2011; and 
--  A $47-million increase in environmental remediation and asset retirement
    obligation expenses due to changes to expected cash outflows. 

EBITDA for Other in the first nine months of 2012 was a loss of $261-million, compared to a loss of $142-million for the first nine months of 2011. The unfavorable change was comprised of:


--  A $170-million increase in share-based payments expense, where there was
    $126-million in charges for the first nine months of 2012 compared to
    recoveries of $44-million in the same period in 2011; and 
--  A $37-million increase in environmental remediation and asset retirement
    obligation expenses. 

This was offset by a $73-million increase in gross profit recovery for the first nine months at September 30, 2012 compared to a gross profit elimination for the first nine months at September 30, 2011 reflecting less inter-segment inventory not yet sold to external customers.

FINANCIAL CONDITION

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


----------------------------------------------------------------------------
As at               September    December                    Explanation of 
(millions of              30,         31,       $        %   the change in  
 U.S. dollars)           2012        2011  Change   Change   balance        
----------------------------------------------------------------------------
Current assets                                                              
 Cash and cash          1,864       1,346     518       38%  See discussion 
  equivalents                                                under the      
                                                             section        
                                                             "Liquidity and 
                                                             Capital        
                                                             Resources".    
----------------------------------------------------------------------------
 Accounts               3,082       1,984   1,098       55%  Increased sales
  receivable                                                 activities and 
                                                             higher prices  
                                                             in Q3 2012 in  
                                                             addition to    
                                                             higher Retail  
                                                             vendor rebates.
----------------------------------------------------------------------------
 Income taxes              67         138     (71)     (51%) Collection of  
  receivable                                                 the U.S. year  
                                                             end income tax 
                                                             receivable in  
                                                             Q1 2012 and an 
                                                             increase in the
                                                             net U.S. income
                                                             tax liability. 
----------------------------------------------------------------------------
 Inventories            2,623       2,956    (333)     (11%) Decreased      
                                                             purchases in Q3
                                                             2012 due to    
                                                             market         
                                                             conditions.    
----------------------------------------------------------------------------
 Prepaid                  265         643    (378)     (59%) Draw-down of   
  expenses and                                               prepaid        
  deposits                                                   inventory where
                                                             typically      
                                                             Retail prepays 
                                                             for product at 
                                                             year end and   
                                                             takes          
                                                             possession of  
                                                             inventory      
                                                             throughout the 
                                                             year.          
----------------------------------------------------------------------------
 Assets of                  -          70     (70)    (100%) The entity     
  discontinued                                               remaining in   
  operations                                                 discontinued   
                                                             operations at  
                                                             December 31,   
                                                             2011 was sold  
                                                             in Q2 2012.    
----------------------------------------------------------------------------
Current                                                                     
 liabilities                                                                
 Short-term debt          631         245     386      158%  Cash management
                                                             strategies to  
                                                             complete the   
                                                             upcoming       
                                                             acquisition of 
                                                             the Agri-      
                                                             products       
                                                             Business from  
                                                             Viterra Inc.   
                                                             ("Viterra") and
                                                             for the share  
                                                             repurchase.    
----------------------------------------------------------------------------
 Accounts               2,832       2,959    (127)      (4%) Draw-down of   
  payable                                                    customer       
                                                             prepayments    
                                                             during the     
                                                             year, where    
                                                             typically      
                                                             customers enter
                                                             into prepay    
                                                             agreements     
                                                             during the     
                                                             fourth quarter 
                                                             ahead of the   
                                                             spring         
                                                             application    
                                                             season offset  
                                                             by a           
                                                             combination of 
                                                             increased trade
                                                             payables due to
                                                             timing and     
                                                             accrued        
                                                             liabilities due
                                                             to capital     
                                                             projects.      
----------------------------------------------------------------------------
 Income taxes             124          82      42       51%  Increase in the
  payable                                                    Canadian net   
                                                             income tax     
                                                             liability.     
----------------------------------------------------------------------------
 Current portion          522          20     502    2,510%  Floating rate  
  of long-term                                               bank loans and 
  debt                                                       South American 
                                                             long-term debt,
                                                             due at various 
                                                             dates within   
                                                             the next 12    
                                                             months, were   
                                                             classified as  
                                                             current.       
----------------------------------------------------------------------------
 Current portion          128          68      60       88%  Increase in    
  of other                                                   environmental  
  provisions                                                 remediation    
                                                             liabilities    
                                                             provisions in  
                                                             addition to    
                                                             movement of    
                                                             asset          
                                                             retirement     
                                                             obligations and
                                                             environmental  
                                                             remediation    
                                                             liabilities    
                                                             from long-term 
                                                             to current.    
----------------------------------------------------------------------------
 Liabilities of             -          53     (53)    (100%) The entity     
  discontinued                                               remaining in   
  operations                                                 discontinued   
                                                             operations at  
                                                             December 31,   
                                                             2011 was sold  
                                                             in Q2 2012.    
----------------------------------------------------------------------------
Working capital         3,664       3,710     (46)      (1%)                
----------------------------------------------------------------------------
----------------------------------------------------------------------------

LIQUIDITY AND CAPITAL RESOURCES

Summary of Consolidated Statements of Cash Flows

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


----------------------------------------------------------------------------
                                          Nine months ended September 30,   
(millions of U.S. dollars)                     2012        2011      Change 
----------------------------------------------------------------------------
Cash provided by operating activities         1,135         249         886 
----------------------------------------------------------------------------
Cash (used in) provided by investing                                        
 activities                                    (948)        119      (1,067)
----------------------------------------------------------------------------
Cash provided by (used in) financing                                        
 activities                                     281        (209)        490 
----------------------------------------------------------------------------
Effect of exchange rate changes on cash                                     
 and cash equivalents                            50          (9)         59 
----------------------------------------------------------------------------
Increase in cash and cash equivalents                                       
 from continuing operations                     518         150         368 
----------------------------------------------------------------------------
Cash and cash equivalents used in                                           
 discontinued operations                          -         (30)         30 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The sources and uses of cash for the nine months ended September 30, 2012 compared to the nine months ended September 30, 2011 are summarized below:


----------------------------------------------------------------------------
----------------------------------------------------------------------------
Cash provided by operating activities - Drivers behind the $886-million     
 source of cash increase                                                    
----------------------------------------------------------------------------
Source of cash    - $797-million increase provided from changes in non-cash 
                  working capital. The increase was primarily driven by a   
                  reduction in inventory, a lower increase in receivables   
                  offset by a lower reduction in prepaid expenses and       
                  deposits for the first nine months of 2012 versus the     
                  first nine months of 2011.                                
                                                                            
                  - $102-million resulting from an increase in net earnings 
                  from continuing operations adjusted for changes in non-   
                  cash items primarily associated with a $170-million change
                  in share-based payments expense where there was an expense
                  of $126-million for the first nine months of 2012 compared
                  to a recovery of $44-million for the first nine months of 
                  2011.                                                     
----------------------------------------------------------------------------
Cash (used in) provided by investing activities - Drivers behind the $1,067-
 million use of cash increase                                               
----------------------------------------------------------------------------
Source of cash    - $68-million decrease for acquisitions due to various    
                  small Retail acquisitions that occurred during the first  
                  nine months of 2012 versus more significant acquisitions  
                  including Evergro Canada, International Mineral           
                  Technologies, Cerealtoscana S.p.A. and Agroport during the
                  first nine months of 2011.                                
                                                                            
                  - $36-million decrease in purchase of investments.        
                                                                            
                  - $60-million increase provided from net change in non-   
                  cash working capital due to higher accounts payable       
                  related to capital expenditures.                          
----------------------------------------------------------------------------
Use of cash       - $721-million decrease in proceeds from disposal of      
                  discontinued operations as $694-million was received in   
                  May 2011 from the sale of the majority of the Commodity   
                  Management businesses to Cargill, originally acquired as  
                  part of AWB Limited.                                      
                                                                            
                  - $435-million increase in capital expenditures primarily 
                  related to the Vanscoy potash expansion project.          
----------------------------------------------------------------------------
Cash provided by (used in) financing activities - Drivers behind the $490-  
 million source of cash increase                                            
----------------------------------------------------------------------------
Source of cash    - A $125-million increase due to the repayment of $125-   
                  million debentures in 2011 and no corresponding debenture 
                  repayment in 2012.                                        
                                                                            
                  - A $510-million increase in cash provided by short-term  
                  debt as $378-million was issued during the first nine     
                  months of 2012 versus a repayment of $132-million in the  
                  first nine months of 2011.                                
----------------------------------------------------------------------------
Use of cash       - $97-million increase in dividends paid during the first 
                  nine months of 2012 as compared to the first nine months  
                  of 2011 resulting from quadrupling the dividends declared 
                  in December 2011 and more than doubling the dividends     
                  declared in June 2012 as compared to December 2011.       
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Capital Expenditures


----------------------------------------------------------------------------
                                                September 30,  September 30,
(millions of U.S. dollars)                               2012           2011
----------------------------------------------------------------------------
Sustaining capital                                        390            252
----------------------------------------------------------------------------
Investing capital                                         475            178
----------------------------------------------------------------------------
Total                                                     865            430
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Our sustaining and investing capital expenditures increased in the first nine months of 2012 compared to the first nine months of 2011 due to continued activity on the Vanscoy potash expansion project.

Short-term Debt

Our short-term debt as at September 30, 2012 is summarized as follows:


                                                                            
----------------------------------------------------------------------------
(millions of U.S. dollars)                   Total   Unutilized     Utilized
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Multi-jurisdictional facility                                               
 expiring 2016                               1,600        1,175          425
----------------------------------------------------------------------------
North American facility expiring 2013          100          100            -
----------------------------------------------------------------------------
European facilities expiring 2013              321          152          169
----------------------------------------------------------------------------
South American facilities expiring                                          
 2012 - 2013                                    70           33           37
----------------------------------------------------------------------------
                                             2,091        1,460          631
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding letters of credit                             (187)             
----------------------------------------------------------------------------
Remaining capacity available                              1,273             
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Capital Management

On October 1, 2012, we issued $500-million of 3.15 percent debentures due October 2022. The debentures were issued under our base shelf prospectus, which permits issuance in Canada and the U.S. of up to an additional $2.0-billion of common shares, preferred shares, subscription receipts, debt securities or units until April 2014. Issuance of further securities under the base shelf prospectus requires filing a prospectus supplement and is subject to availability of funding in capital markets.

OUTSTANDING SHARE DATA

The number of Agrium's outstanding shares as at October 31, 2012 was approximately 149 million. On October 22, 2012 we purchased and cancelled 8.74 million Agrium shares tendered under an issuer bid for a total purchase price of Cdn$900-million. As at October 31, 2012, 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 0.1 million.


SELECTED QUARTERLY INFORMATION                                              
                                                                            
----------------------------------------------------------------------------
(millions of U.S. dollars,    2012  2012  2012  2011  2011  2011  2011  2010
except per share amounts)       Q3    Q2    Q1    Q4    Q3    Q2    Q1    Q4
----------------------------------------------------------------------------
Sales                        2,962 6,834 3,629 3,177 3,141 6,198 2,954 2,398
----------------------------------------------------------------------------
Gross profit                   798 1,870   800 1,045   888 1,675   725   725
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                    129   860   155   327   293   728   160   152
----------------------------------------------------------------------------
Net earnings                   129   860   155   193   293   718   171   135
----------------------------------------------------------------------------
Earnings per share from                                                     
continuing operations                                                       
----------------------------------------------------------------------------
 -basic                       0.80  5.44  0.97  2.05  1.86  4.61  1.02  0.97
----------------------------------------------------------------------------
 -diluted                     0.80  5.44  0.97  2.04  1.85  4.60  1.02  0.97
----------------------------------------------------------------------------
Earnings per share                                                          
----------------------------------------------------------------------------
 -basic                       0.80  5.44  0.97  1.20  1.86  4.55  1.09  0.86
----------------------------------------------------------------------------
 -diluted                     0.80  5.44  0.97  1.20  1.85  4.54  1.09  0.86
----------------------------------------------------------------------------
----------------------------------------------------------------------------

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 the application season. Cash collections generally occur after the application season is complete in the Americas and Australia.

BUSINESS ACQUISITION

On March 19, 2012, we signed an agreement to acquire the majority of the Agri-products business of Viterra, consisting of approximately 90 percent of Viterra's 258 Canadian farm centres; 17 Australian retail farm centres; a 34 percent interest in a nitrogen facility in Medicine Hat, Canada; storage and distribution assets; and other assets and liabilities (collectively the "Agri-products Business"). The purchase price is expected to be approximately Cdn$1.65-billion, including estimated working capital of Cdn$500-million. For further information on this agreement, please refer to Form 51-102F3, Material Change Report, dated March 20, 2012 filed on SEDAR at www.sedar.com. Agrium will acquire the Agrium Assets from Glencore International plc ("Glencore") after Glencore acquires Viterra. Both Glencore's acquisition of Viterra and Agrium's acquisition of the Agri-products Business are subject to obtaining any required consents to transfers and regulatory clearances. Shareholders of Viterra approved the acquisition by Glencore on May 29, 2012. Glencore has received approval of its acquisition of Viterra under the Investment Canada Act on July 15, 2012, however other regulatory approvals remain outstanding.

On August 2, 2012, Agrium and Glencore announced that CF Industries Holdings Inc. ("CF"), owner of a 66 percent interest in the Medicine Hat nitrogen facility, will acquire Viterra's 34 percent interest for Cdn$915-million. Accordingly, Agrium will not acquire an interest in the Medicine Hat facility. The agreement between Glencore and CF is subject to regulatory approval. Agrium will continue to receive the benefit of Viterra's operating cash flow on the Medicine Hat nitrogen facility from March 31, 2012 to October 15, 2012.

NON-IFRS FINANCIAL MEASURES

In the discussion of our performance for the quarter, in addition to the primary measures of earnings and earnings per share reported in accordance with IFRS, we make reference to EBITDA. We consider EBITDA to be a useful measure 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 is not a recognized measure under IFRS, and our method of calculation may not be comparable to other companies. Similarly, EBITDA should not be used as an alternative to net earnings from continuing operations as determined in accordance with IFRS.

The following table is a reconciliation of EBITDA to consolidated net earnings from continuing operations as determined in accordance with IFRS:


                                                                            
----------------------------------------------------------------------------
                                           Three months ended               
                                           September 30, 2012               
                            ------------------------------------------------
(millions of U.S. dollars)    Retail  Wholesale   AAT   Other  Consolidated 
----------------------------------------------------------------------------
EBITDA                           121        376     4    (157)          344 
----------------------------------------------------------------------------
Depreciation and                                                            
 amortization                     52         64     7       3           126 
----------------------------------------------------------------------------
EBIT                              69        312    (3)   (160)          218 
----------------------------------------------------------------------------
Finance costs related to                                                    
 long-term debt                                                         (23)
----------------------------------------------------------------------------
Other finance costs                                                      (9)
----------------------------------------------------------------------------
Income taxes                                                            (57)
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                                                             129 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                            
----------------------------------------------------------------------------
                                           Three months ended               
                                           September 30, 2011               
                            ------------------------------------------------
(millions of U.S. dollars)    Retail  Wholesale   AAT   Other  Consolidated 
----------------------------------------------------------------------------
EBITDA                           135        438     3     (30)          546 
----------------------------------------------------------------------------
Depreciation and                                                            
 amortization                     43         45     6       4            98 
----------------------------------------------------------------------------
EBIT                              92        393    (3)    (34)          448 
----------------------------------------------------------------------------
Finance costs related to                                                    
 long-term debt                                                         (25)
----------------------------------------------------------------------------
Other finance costs                                                     (17)
----------------------------------------------------------------------------
Income taxes                                                           (113)
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                                                             293 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
                                           Nine months ended                
                                           September 30, 2012               
                            ------------------------------------------------
(millions of U.S. dollars)    Retail  Wholesale    AAT  Other  Consolidated 
----------------------------------------------------------------------------
EBITDA                           827      1,424     26   (261)        2,016 
----------------------------------------------------------------------------
Depreciation and                                                            
 amortization                    145        152     20     11           328 
----------------------------------------------------------------------------
EBIT                             682      1,272      6   (272)        1,688 
----------------------------------------------------------------------------
Finance costs related to                                                    
 long-term debt                                                         (67)
----------------------------------------------------------------------------
Other finance costs                                                     (29)
----------------------------------------------------------------------------
Income taxes                                                           (448)
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                                                           1,144 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                            
----------------------------------------------------------------------------
                                           Nine months ended                
                                           September 30, 2011               
                            ------------------------------------------------
(millions of U.S. dollars)    Retail  Wholesale    AAT  Other  Consolidated 
----------------------------------------------------------------------------
EBITDA                           689      1,467     22   (142)        2,036 
----------------------------------------------------------------------------
Depreciation and                                                            
 amortization                    126        128     17     10           281 
----------------------------------------------------------------------------
EBIT                             563      1,339      5   (152)        1,755 
----------------------------------------------------------------------------
Finance costs related to                                                    
 long-term debt                                                         (76)
----------------------------------------------------------------------------
Other finance costs                                                     (42)
----------------------------------------------------------------------------
Income taxes                                                           (456)
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                                                           1,181 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

Schedule 5 "Schedule of Selected Retail and Consolidated information" also provides ratios and balances that are not recognized measures under IFRS and our method of calculation may not be comparable to other companies. Ratio definitions are provided on Schedule 5. We consider these non-IFRS measures to provide useful information to both management and investors in measuring our financial performance and financial condition.

CRITICAL ACCOUNTING ESTIMATES AND JUDGMENTS

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 estimates, please refer to the "Critical Accounting Estimates" section of our 2011 annual Management's Discussion and Analysis, which is contained in our 2011 Annual Report. Since the date of our 2011 annual Management's Discussion and Analysis, there have not been any significant changes to our critical accounting estimates and judgments.

CHANGES IN ACCOUNTING POLICIES

For information regarding changes in accounting policies, please refer to the "Accounting Standards and Policy Changes Not Yet Implemented" section of our 2011 annual Management's Discussion and Analysis, which is contained in our 2011 Annual Report.

BUSINESS RISKS

The information presented on Enterprise Risk Management and Key Business Risks on pages 68 - 71 in our 2011 Annual Report has not changed materially since December 31, 2011.

CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting during the quarter ended September 30, 2012 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 2011 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

Grain production problems in some of the world's most important growing regions are expected to result in global grain ending stocks being drawn down to their lowest levels since 2007/08. As a result, new crop 2013 Chicago corn and wheat futures contracts in October averaged $6.32 per bushel and $8.56 per bushel respectively, 7 percent and 19 percent higher than previous records set in 2011. Global grain prices have responded in order to attract increased production through higher planted area, and weather-permitting, boosting yields through higher levels of crop inputs globally.

We expect that demand for top quality seed will be strong for the 2013 growing season. A combination of reduced seed supply due to the U.S. drought, high crop prices and improved genetic offerings should support higher seed prices and demand. The U.S. corn harvest is progressing at a record pace, which is expected to allow for an extended fall application season.

Crop nutrient prices are very attractive relative to crop prices and budgets, which should be supportive of strong crop input demand in most regions of the world. Strong demand, combined with reduced pipeline inventories should support producer shipments. Despite these robust fundamentals, the impact of global macroeconomic uncertainty will remain a consideration. The International Monetary Fund recently downgraded its 2013 global economic growth forecast and emphasized the potential risks to the economy. Economic risks may keep buyers and traders mindful of inventory risks, resulting in low buffer stocks and increased price volatility, particularly during periods of strong demand.

Nitrogen prices have been relatively stable in recent months, although U.S. Gulf and international urea prices recently took a step down. The ammonia market has been supported by gas restrictions in Trinidad as well as less net ammonia available from new projects than expected. The urea market has been largely balanced, as recent strong demand from India and the U.S. has offset new capacity in Qatar and higher Chinese export supplies during the low export tax window this year. The fundamentals for nitrogen demand moving into 2013 should remain positive. The wheat market is sending a strong signal to increase Northern Hemisphere winter wheat area. So far in its April to March fertilizer year, Indian urea imports are down 10 percent in 2012/13 compared to 2011/12, but a strong finish to the monsoon season is expected to support import demand for the next few months. Brazilian urea demand in the fourth quarter should be supported by the potential for an increased second corn crop and a higher sugarcane renewal rate than has been the case for the past few years.

The global phosphate market has shown signs of softness over the past month, however we still expect strong global demand in first half of 2013. Chinese phosphate exports have been approximately 30 percent lower in 2012 than last year, which has been largely offset by reduced Indian purchases and increased supply from Saudi Arabia. India is an important importer of phosphates and domestic fertilizer policy changes have led to reduced demand. Analysts expect Indian phosphate demand to stabilize and improve modestly in 2013, but the impacts of the current policy, weather and currency fluctuations in India remain an uncertainty.

Global potash demand has been weaker than the other two major nutrients, which has also impacted potash pricing. This is primarily due to uncertainty with respect to the timing and volume of new supply agreements with China and India, and is expected to have a significant impact on international shipment volumes in the fourth quarter. There are indications that Brazilian potash demand has been strong during the planting season and inventory levels have been drawn down. Domestic producer shipments into North American markets in the third quarter of 2012 were higher than the same quarter last year but concerns remain over the impact that the U.S. drought might have on fall application rates in the hardest hit drought areas.

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 expected increase in Agrium's dividend and intention to increase Agrium's dividend over time 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 Fertilizers Production Company S.A.E. ("MOPCO") 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 the proposed acquisition of the Agri-products Business of Viterra, and the proposed transaction whereby Viterra's 34 percent interest in the Medicine Hat Nitrogen Facility is acquired by CF, including: completion of the acquisition of Viterra by Glencore and the subsequent acquisition of the assets proposed to be purchased by Agrium, and the sale of Agri-products Business assets to CF, as well as the timing thereof; the receipt of the necessary regulatory approvals in respect of the assets proposed to be purchased by Agrium and CF and the satisfaction of other conditions precedent to closing; 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 intention to increase the Corporation's dividend in the future and ultimate decision to do so is subject to Corporate requirements being met as well as business and market fundamentals remaining positive.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this press release 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 grow across the value chain through acquisition, incremental expansion of its existing operations and through the development, commercialization and marketing of new products and international opportunities. Our strategy places particular emphasis on growth opportunities that both increase and stabilize our earnings profile in the continuing transformation of Agrium.

A WEBSITE SIMULCAST of the 2012 3rd Quarter Conference Call will be available in a listen-only mode beginning Wednesday, November 7, 2012 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   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                          2012     2011      2012      2011 
----------------------------------------------------------------------------
                                                                            
Sales                                    2,962    3,141    13,425    12,293 
----------------------------------------------------------------------------
Cost of product sold                     2,164    2,253     9,957     9,005 
----------------------------------------------------------------------------
Gross profit                               798      888     3,468     3,288 
----------------------------------------------------------------------------
Expenses                                                                    
----------------------------------------------------------------------------
  Selling                                  389      409     1,300     1,250 
----------------------------------------------------------------------------
  General and administrative               145       39       408       241 
----------------------------------------------------------------------------
  Earnings from associates                   -       (8)      (10)      (15)
----------------------------------------------------------------------------
  Other expenses (note 3)                   46        -        82        57 
----------------------------------------------------------------------------
Earnings before finance costs and                                           
 income taxes                              218      448     1,688     1,755 
----------------------------------------------------------------------------
  Finance costs related to long-term                                        
   debt                                     23       25        67        76 
----------------------------------------------------------------------------
  Other finance costs                        9       17        29        42 
----------------------------------------------------------------------------
Earnings before income taxes               186      406     1,592     1,637 
----------------------------------------------------------------------------
  Income taxes                              57      113       448       456 
----------------------------------------------------------------------------
Net earnings from continuing                                                
 operations                                129      293     1,144     1,181 
----------------------------------------------------------------------------
Net earnings from discontinued                                              
 operations                                  -        -         -         1 
----------------------------------------------------------------------------
Net earnings                               129      293     1,144     1,182 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
----------------------------------------------------------------------------
  Equity holders of Agrium                 127      293     1,140     1,182 
----------------------------------------------------------------------------
  Non-controlling interest                   2        -         4         - 
----------------------------------------------------------------------------
Net earnings                               129      293     1,144     1,182 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Earnings per share attributable to                                          
 equity holders of Agrium (note 4)                                          
----------------------------------------------------------------------------
  Basic earnings per share from                                             
   continuing operations                  0.80     1.86      7.22      7.49 
----------------------------------------------------------------------------
  Basic earnings per share from                                             
   discontinued operations                   -        -         -         - 
----------------------------------------------------------------------------
  Basic earnings per share                0.80     1.86      7.22      7.49 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
  Diluted earnings per share from                                           
   continuing operations                  0.80     1.85      7.21      7.48 
----------------------------------------------------------------------------
  Diluted earnings per share from                                           
   discontinued operations                   -        -         -         - 
----------------------------------------------------------------------------
  Diluted earnings per share              0.80     1.85      7.21      7.48 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                AGRIUM INC.                                 
              Consolidated Statements of Comprehensive Income               
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                                                            
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                          2012     2011      2012      2011 
----------------------------------------------------------------------------
                                                                            
Net earnings                               129      293     1,144     1,182 
----------------------------------------------------------------------------
Other comprehensive income (loss)                                           
----------------------------------------------------------------------------
  Items that may be reclassified to                                         
   earnings                                                                 
----------------------------------------------------------------------------
    Available for sale financial                                            
     instruments                                                            
----------------------------------------------------------------------------
      Gains                                  -        -         -         1 
----------------------------------------------------------------------------
      Reclassifications to earnings          -        -         -        (2)
----------------------------------------------------------------------------
    Foreign currency translation                                            
----------------------------------------------------------------------------
      Gains (losses)                       110     (181)       97      (121)
----------------------------------------------------------------------------
      Reclassifications to earnings          -        -         -       (23)
----------------------------------------------------------------------------
    Other comprehensive income                                              
     (loss) of associates                    1       (1)       (1)        - 
----------------------------------------------------------------------------
                                           111     (182)       96      (145)
----------------------------------------------------------------------------
  Items that will not be                                                    
   reclassified to earnings                                                 
----------------------------------------------------------------------------
    Actuarial losses on post-                                               
     employment benefit plans                                               
----------------------------------------------------------------------------
      Losses                                 -      (26)      (22)      (26)
----------------------------------------------------------------------------
      Deferred income taxes                  -        7         6         7 
----------------------------------------------------------------------------
                                             -      (19)      (16)      (19)
----------------------------------------------------------------------------
  Other comprehensive income (loss)        111     (201)       80      (164)
----------------------------------------------------------------------------
Comprehensive income                       240       92     1,224     1,018 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Attributable to:                                                            
----------------------------------------------------------------------------
  Equity holders of Agrium                 236       92     1,219     1,025 
----------------------------------------------------------------------------
  Non-controlling interest                   4        -         5        (7)
----------------------------------------------------------------------------
Comprehensive income                       240       92     1,224     1,018 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
See accompanying notes.                                                     
                                                                            
                                AGRIUM INC.                                 
                   Consolidated Statements of Cash Flows                    
                         (Millions of U.S. dollars)                         
                                (Unaudited)                                 
                                                                            
                                                                            
                                     Three months ended   Nine months ended 
                                          September 30,       September 30, 
----------------------------------------------------------------------------
                                         2012      2011      2012      2011 
----------------------------------------------------------------------------
                                                                            
Operating                                                                   
----------------------------------------------------------------------------
  Net earnings from continuing                                              
   operations                             129       293     1,144     1,181 
----------------------------------------------------------------------------
  Items not affecting cash                                                  
----------------------------------------------------------------------------
    Depreciation and amortization         126        98       328       281 
----------------------------------------------------------------------------
    Earnings from associates                -        (8)      (10)      (15)
----------------------------------------------------------------------------
    Share-based payments                   53       (46)      126       (44)
----------------------------------------------------------------------------
    Unrealized gain on derivative                                           
     financial instruments                 (3)       (2)      (17)      (47)
----------------------------------------------------------------------------
    Unrealized foreign currency                                             
     translation loss (gain)                -         3        (7)       11 
----------------------------------------------------------------------------
    Deferred income taxes                 (31)       28       (44)       97 
----------------------------------------------------------------------------
    Other                                  73        10        89        43 
----------------------------------------------------------------------------
  Dividends from associates                 -         -         3        16 
----------------------------------------------------------------------------
  Net changes in non-cash working                                           
   capital                               (332)     (203)     (477)   (1,274)
----------------------------------------------------------------------------
Cash provided by operating                                                  
 activities                                15       173     1,135       249 
----------------------------------------------------------------------------
Investing                                                                   
----------------------------------------------------------------------------
  Acquisitions, net of cash acquired       (5)     (118)      (77)     (145)
----------------------------------------------------------------------------
  Proceeds from disposal of                                                 
   discontinued operations                  -        27         -       721 
----------------------------------------------------------------------------
  Capital expenditures                   (351)     (184)     (865)     (430)
----------------------------------------------------------------------------
  Investments in associates               (20)      (15)      (10)      (15)
----------------------------------------------------------------------------
  Purchase of investments                  (4)       (3)       (7)      (43)
----------------------------------------------------------------------------
  Proceeds from disposal of                                                 
   investments                              -         -         -        36 
----------------------------------------------------------------------------
  Other                                    (3)        5       (49)       (5)
----------------------------------------------------------------------------
  Net changes in non-cash working                                           
   capital                                 31         -        60         - 
----------------------------------------------------------------------------
Cash (used in) provided by investing                                        
 activities                              (352)     (288)     (948)      119 
----------------------------------------------------------------------------
Financing                                                                   
----------------------------------------------------------------------------
  Short-term debt                         285      (109)      378      (132)
----------------------------------------------------------------------------
  Long-term debt issued                     -        60        21        70 
----------------------------------------------------------------------------
  Transaction costs on long-term                                            
   debt                                    (1)        -        (1)        - 
----------------------------------------------------------------------------
  Repayment of long-term debt              (6)       (1)       (9)     (134)
----------------------------------------------------------------------------
  Dividends paid (a)                      (79)       (9)     (115)      (18)
----------------------------------------------------------------------------
  Shares issued, net of issuance                                            
   costs                                    -         3         7         5 
----------------------------------------------------------------------------
Cash provided by (used in) financing                                        
 activities                               199       (56)      281      (209)
----------------------------------------------------------------------------
Effect of exchange rate changes on                                          
 cash and cash equivalents                 56       (21)       50        (9)
----------------------------------------------------------------------------
(Decrease) increase in cash and cash                                        
 equivalents from continuing                                                
 operations                               (82)     (192)      518       150 
----------------------------------------------------------------------------
Cash and cash equivalents used in                                           
 discontinued operations                    -       (19)        -       (30)
----------------------------------------------------------------------------
Cash and cash equivalents -                                                 
 beginning of period                    1,946       966     1,346       635 
----------------------------------------------------------------------------
Cash and cash equivalents - end of                                          
 period                                 1,864       755     1,864       755 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Included in operating activities                                            
----------------------------------------------------------------------------
  Interest paid                            44        55       102       115 
----------------------------------------------------------------------------
  Interest received                        30        25        65        58 
----------------------------------------------------------------------------
  Income taxes paid                       226       150       407       263 
----------------------------------------------------------------------------
                                                                            
Included in investing activities                                            
----------------------------------------------------------------------------
  Interest paid                             8         4        17         6 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Dividends of $0.225 per share were paid January 19, 2012 to shareholders
    of record on January 1, 2012. Dividends of $0.50 per share were paid    
    July 12, 2012 to shareholders of record on July 1, 2012.                
                                                                            
See accompanying notes.                                                     
                                                                            
                                 AGRIUM INC.                                
                         Consolidated Balance Sheets                        
                         (Millions of U.S. dollars)                         
                                 (Unaudited)                                
                                                                            
                                                                            
                                                 September 30,  December 31,
----------------------------------------------------------------------------
                                            2012      2011 (a)          2011
----------------------------------------------------------------------------
ASSETS                                                                      
----------------------------------------------------------------------------
Current assets                                                              
----------------------------------------------------------------------------
  Cash and cash equivalents                1,864           755         1,346
----------------------------------------------------------------------------
  Accounts receivable                      3,082         2,908         1,984
----------------------------------------------------------------------------
  Income taxes receivable                     67             -           138
----------------------------------------------------------------------------
  Inventories                              2,623         2,531         2,956
----------------------------------------------------------------------------
  Prepaid expenses and deposits              265           347           643
----------------------------------------------------------------------------
  Assets of discontinued operations            -           200            70
----------------------------------------------------------------------------
                                           7,901         6,741         7,137
----------------------------------------------------------------------------
Property, plant and equipment (note 5)     3,354         2,317         2,533
----------------------------------------------------------------------------
Intangibles                                  628           660           678
----------------------------------------------------------------------------
Goodwill                                   2,298         2,280         2,277
----------------------------------------------------------------------------
Investments in associates                    414           406           355
----------------------------------------------------------------------------
Other assets                                  55            97            97
----------------------------------------------------------------------------
Deferred income tax assets                    77            33            63
----------------------------------------------------------------------------
                                          14,727        12,534        13,140
----------------------------------------------------------------------------
----------------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
----------------------------------------------------------------------------
Current liabilities                                                         
----------------------------------------------------------------------------
  Short-term debt (note 6)                   631           396           245
----------------------------------------------------------------------------
  Accounts payable                         2,832         2,476         2,959
----------------------------------------------------------------------------
  Income taxes payable                       124            34            82
----------------------------------------------------------------------------
  Current portion of long-term debt                                         
   (note 6)                                  522            59            20
----------------------------------------------------------------------------
  Current portion of other provisions                                       
   (note 5)                                  128            39            68
----------------------------------------------------------------------------
  Liabilities of discontinued                                               
   operations                                  -            83            53
----------------------------------------------------------------------------
                                           4,237         3,087         3,427
----------------------------------------------------------------------------
Long-term debt (note 6)                    1,607         2,118         2,098
----------------------------------------------------------------------------
Provisions for post-employment                                              
 benefits                                    202           158           192
----------------------------------------------------------------------------
Other provisions (note 5)                    425           306           299
----------------------------------------------------------------------------
Other liabilities                             75            72            59
----------------------------------------------------------------------------
Deferred income tax liabilities              605           580           637
----------------------------------------------------------------------------
                                           7,151         6,321         6,712
----------------------------------------------------------------------------
Shareholders' equity                                                        
----------------------------------------------------------------------------
  Share capital                            2,001         1,993         1,994
----------------------------------------------------------------------------
  Retained earnings                        5,465         4,288         4,420
----------------------------------------------------------------------------
  Accumulated other comprehensive                                           
   income (loss) (note 8)                    105          (69)            10
----------------------------------------------------------------------------
  Equity holders of Agrium                 7,571         6,212         6,424
----------------------------------------------------------------------------
  Non-controlling interest                     5             1             4
----------------------------------------------------------------------------
  Total equity                             7,576         6,213         6,428
----------------------------------------------------------------------------
                                          14,727        12,534        13,140
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Certain amounts have been restated to reflect adjustments from the      
    finalization of the AWB Limited acquisition.                            
                                                                            
See accompanying notes.                                                     
                                                                            
                                 AGRIUM INC.                                
               Consolidated Statements of Shareholders' Equity              
                (Millions of U.S. dollars, except share data)               
                                 (Unaudited)                                
                                                                            
                                                                Accumulated 
                                 Millions                             other 
                                       of                     comprehensive 
                                   common     Share Retained  income (loss) 
                               shares (a)   capital earnings       (note 8) 
----------------------------------------------------------------------------
December 31, 2010                     158     1,982    3,134             69 
----------------------------------------------------------------------------
Net earnings                            -         -    1,182              - 
----------------------------------------------------------------------------
Other comprehensive income                                                  
 (loss)                                                                     
----------------------------------------------------------------------------
 Available for sale financial                                               
  instruments                           -         -        -             (1)
----------------------------------------------------------------------------
 Actuarial loss on post-                                                    
  employment benefit plans              -         -      (19)             - 
----------------------------------------------------------------------------
 Foreign currency translation           -         -        -           (137)
----------------------------------------------------------------------------
Comprehensive income (loss)             -         -    1,163           (138)
----------------------------------------------------------------------------
Dividends ($0.055 per share)            -         -       (9)             - 
----------------------------------------------------------------------------
Share-based payment                                                         
 transactions                           -        11        -              - 
----------------------------------------------------------------------------
September 30, 2011                    158     1,993    4,288            (69)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
December 31, 2011                     158     1,994    4,420             10 
----------------------------------------------------------------------------
Net earnings                            -         -    1,140              - 
----------------------------------------------------------------------------
 Actuarial loss on post-                                                    
  employment benefit plans              -         -      (16)             - 
----------------------------------------------------------------------------
 Foreign currency translation           -         -        -             96 
----------------------------------------------------------------------------
 Other comprehensive loss of                                                
  associates                            -         -        -             (1)
----------------------------------------------------------------------------
Comprehensive income                    -         -    1,124             95 
----------------------------------------------------------------------------
Dividends ($0.50 per share)             -         -      (79)             - 
----------------------------------------------------------------------------
Dividends of non-controlling                                                
 interest                               -         -        -              - 
----------------------------------------------------------------------------
Share-based payment                                                         
 transactions                           -         7        -              - 
----------------------------------------------------------------------------
September 30, 2012                    158     2,001    5,465            105 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

                                                                            
                                AGRIUM INC.                                 
              Consolidated Statements of Shareholders' Equity               
               (Millions of U.S. dollars, except share data)                
                                (Unaudited)                                 
                                                                            
                                                                            
                                                                            
                                       Equity           Non-                
                                   holders of    controlling          Total 
                                       Agrium       interest         equity 
----------------------------------------------------------------------------
December 31, 2010                       5,185              8          5,193 
----------------------------------------------------------------------------
Net earnings                            1,182              -          1,182 
----------------------------------------------------------------------------
Other comprehensive income                                                  
 (loss)                                                                     
----------------------------------------------------------------------------
 Available for sale financial                                               
  instruments                              (1)             -             (1)
----------------------------------------------------------------------------
 Actuarial loss on post-                                                    
  employment benefit plans                (19)             -            (19)
----------------------------------------------------------------------------
 Foreign currency translation            (137)            (7)          (144)
----------------------------------------------------------------------------
Comprehensive income (loss)             1,025             (7)         1,018 
----------------------------------------------------------------------------
Dividends ($0.055 per share)               (9)             -             (9)
----------------------------------------------------------------------------
Share-based payment                                                         
 transactions                              11              -             11 
----------------------------------------------------------------------------
September 30, 2011                      6,212              1          6,213 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
December 31, 2011                       6,424              4          6,428 
----------------------------------------------------------------------------
Net earnings                            1,140              4          1,144 
----------------------------------------------------------------------------
 Actuarial loss on post-                                                    
  employment benefit plans                (16)             -            (16)
----------------------------------------------------------------------------
 Foreign currency translation              96              1             97 
----------------------------------------------------------------------------
 Other comprehensive loss of                                                
  associates                               (1)             -             (1)
----------------------------------------------------------------------------
Comprehensive income                    1,219              5          1,224 
----------------------------------------------------------------------------
Dividends ($0.50 per share)               (79)             -            (79)
----------------------------------------------------------------------------
Dividends of non-controlling                                                
 interest                                   -             (4)            (4)
----------------------------------------------------------------------------
Share-based payment                                                         
 transactions                               7              -              7 
----------------------------------------------------------------------------
September 30, 2012                      7,571              5          7,576 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(a) Authorized share capital consists of unlimited common shares without par
    value and unlimited preferred shares.                                   
                                                                            
See accompanying notes.                                                     

AGRIUM INC.

Summarized Notes to the Consolidated Financial Statements

For the nine months ended September 30, 2012

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

(Unaudited)

1. Corporate Information

Corporate information

Agrium Inc. ("Agrium") is incorporated under the laws of Canada with common shares listed under the symbol "AGU" on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Agrium (with its subsidiaries) is a major retail supplier of agricultural products and services in North and South America, Australia and Europe and a leading global producer and marketer of agricultural nutrients and industrial products. We produce and market three primary groups of nutrients: nitrogen, phosphate and potash as well as controlled-release crop nutrients and micronutrients. Our Corporate head office is located at 13131 Lake Fraser Drive S.E. Calgary, Alberta, Canada. Our operations are conducted globally from our Wholesale head office in Calgary, and our Retail and Advanced Technologies head offices in Loveland, Colorado, U.S.

Agrium 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 producing,
    marketing and distributing three primary groups of crop nutrients:
    nitrogen, potash and phosphate for agricultural and industrial customers
    around the world. 
--  Advanced Technologies 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 worldwide. 

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were approved for issuance by the Audit Committee on November 6, 2012. We prepared these interim financial statements in accordance with International Financial Reporting Standards 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 2011 Annual Report, available at www.agrium.com. We prepared these interim financial statements using the same accounting policies and critical accounting estimates we applied in our 2011 Annual Report.

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

2. Business Acquisition

On March 19, 2012, we signed an agreement with Glencore International plc ("Glencore") to acquire the majority of the Agri-products business of Viterra Inc. ("Viterra"), consisting of approximately 90 percent of Viterra's 258 Canadian farm centres; 17 Australian retail farm centres; a 34 percent interest in a nitrogen facility in Medicine Hat, Canada; storage and distribution assets; and other assets and liabilities (collectively the "Agri-products Business").

Key features of the acquisition:


a.  Agrium will acquire the Agri-products Business from Glencore after
    Glencore acquires Viterra. Both Glencore's acquisition of Viterra and
    Agrium's acquisition of the Agri-products Business are subject to
    obtaining required consents to transfers and regulatory clearances.
    Shareholders of Viterra approved the acquisition by Glencore on May 29,
    2012. Glencore has received approval of its acquisition of Viterra under
    the Investment Canada Act, however regulatory approval remains
    outstanding from the Ministry of Commerce, China. Agrium is responsible
    for obtaining regulatory clearances for its acquisition of the Agri-
    products Business. Should Agrium not obtain regulatory clearance within
    the maximum time frames specified in the agreement, the Agri-products
    Business may be sold or transferred to Agrium or a third party under a
    hold separate arrangement. Accordingly, Agrium is exposed to the risk
    that the proceeds of any such sale may be for an amount less than the
    portion of the purchase price allocated to such assets. Agrium will not
    own or operate the assets until acquisition of the Agri-products
    Business closes. 
b.  The acquisition price is subject to various terms and conditions
    including adjustments for: approximately 10 percent of Viterra's farm
    centres excluded from the purchase; working capital; and the accrual to
    Agrium of Viterra's operating cash flow on the Agri-products assets from
    March 31, 2012 to October 15, 2012. Following adjustment for the
    excluded farm centres, and before adjustment for operating cash flows,
    the purchase price for the Agri-products Business is expected to be
    approximately Cdn$1.65-billion, including estimated working capital of
    Cdn$500-million. 
c.  On August 2, 2012, Agrium and Glencore announced that CF Industries
    Holdings Inc. ("CF"), owner of a 66 percent interest in the Medicine Hat
    nitrogen facility, will acquire Viterra's 34 percent interest for
    Cdn$915-million, subject to certain adjustments. Accordingly, Agrium
    will not acquire an interest in the Medicine Hat facility. The agreement
    between Glencore and CF is subject to regulatory approval. 
d.  Agrium has agreed to advance Cdn$1.775-billion to Glencore at the time
    Glencore is first required to pay for Viterra shares. The advance will
    be guaranteed by Glencore, secured by shares of Viterra and will not
    bear interest. The advance will be repayable in cash from proceeds of
    Glencore's sale of the Medicine Hat facility or other assets, or by the
    transfer of Agri-products Business assets to Agrium, or other purchase
    adjustments. Should Agrium not obtain regulatory clearances or otherwise
    not be entitled to acquire any portion of the Agri-products Business
    within the 19-month period from Glencore's acquisition of Viterra,
    Glencore will repay Agrium cash equal to the purchase price allocated by
    the agreement to any assets not acquired. In support of its obligations,
    Agrium has provided a letter of credit for Cdn$85-million. 

3. Expenses                                                                 
                                     Three months ended   Nine months ended 
Other expenses                            September 30,       September 30, 
----------------------------------------------------------------------------
                                         2012      2011      2012      2011 
----------------------------------------------------------------------------
Realized loss on derivative                                                 
 financial instruments                      2         1        26        76 
----------------------------------------------------------------------------
Unrealized gain on derivative                                               
 financial instruments                     (3)       (2)      (17)      (47)
----------------------------------------------------------------------------
Interest income                           (31)      (24)      (66)      (57)
----------------------------------------------------------------------------
Foreign exchange loss (gain)                4         -        16       (42)
----------------------------------------------------------------------------
Environmental remediation and asset                                         
 retirement obligations                    66         5        78        29 
----------------------------------------------------------------------------
Bad debt expense                            6         6        30        33 
----------------------------------------------------------------------------
Potash profit and capital tax               -         7        13        33 
----------------------------------------------------------------------------
Other                                       2         7         2        32 
----------------------------------------------------------------------------
                                           46         -        82        57 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

The Board of Directors granted 250,831 Performance Share Units on January 1, 2012 and 258,132 Tandem Stock Appreciation Rights with a grant price of $88.27 on March 20, 2012 to officers and employees.


4.  Earnings Per Share                                                      
                                                                            
                                                                            
Attributable to equity holders of     Three months ended   Nine months ended
 Agrium                                    September 30,       September 30,
----------------------------------------------------------------------------
                                          2012      2011      2012      2011
----------------------------------------------------------------------------
Numerator                                                                   
----------------------------------------------------------------------------
  Net earnings from continuing                                              
   operations                              127       293     1,140     1,181
----------------------------------------------------------------------------
  Net earnings from discontinued                                            
   operations                                -         -         -         1
----------------------------------------------------------------------------
  Net earnings for the period              127       293     1,140     1,182
----------------------------------------------------------------------------
 Denominator (millions)                                                     
----------------------------------------------------------------------------
  Weighted average number of shares                                         
   outstanding for basic earnings                                           
   per share                               158       158       158       158
----------------------------------------------------------------------------
  Dilutive instruments - stock                                              
   options                                   -         -         -         -
----------------------------------------------------------------------------
  Weighted average number of shares                                         
   outstanding for diluted earnings                                         
   per share                               158       158       158       158
----------------------------------------------------------------------------
----------------------------------------------------------------------------

On October 22, 2012 we purchased and cancelled 8.74 million Agrium shares tendered under an issuer bid for a total purchase price of Cdn$900-million.

5. Property, Plant and Equipment

During the nine months ended September 30, 2012, we added $515-million to assets under construction at our Vanscoy Potash facility.

In March 2012, we recorded an asset retirement obligation for the phosphogypsum stack system at our Conda, Idaho phosphate facility. Included in the provision of $139-million are costs to address phosphogypsum stack decommissioning at the Conda facility, including post-closure monitoring. The provision was based on negotiations with government authorities, which are ongoing. Timing of the expenditures is contingent on, among other things, the completion of negotiations with government authorities, completion of engineering and planning for the work, and approval of engineering and planning by government authorities. Because various circumstances may affect the timing and amount of expenditures, we may change our provision as new information becomes available.


6.   Debt                                                                   
                                                                            
                                                                            
                                     September 30,             December 31, 
----------------------------------------------------------------------------
                                              2012                     2011 
----------------------------------------------------------------------------
                               Total    Unutilized  Utilized       Utilized 
----------------------------------------------------------------------------
Short-term debt                                                             
----------------------------------------------------------------------------
Multi-jurisdictional                                                        
 facility expiring 2016        1,600         1,175       425              - 
----------------------------------------------------------------------------
North American facility                                                     
 expiring 2013                   100           100         -              - 
----------------------------------------------------------------------------
European facilities                                                         
 expiring 2013                   321           152       169            178 
----------------------------------------------------------------------------
South American facilities                                                   
 expiring 2012 - 2013             70            33        37             67 
----------------------------------------------------------------------------
                               2,091         1,460       631            245 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Outstanding letters of                                                      
 credit                                       (187)                         
----------------------------------------------------------------------------
Remaining capacity                                                          
 available                                   1,273                          
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Long-term debt                                                              
----------------------------------------------------------------------------
Floating rate bank loans                                                    
 due 2013 - 2016                                          33             35 
----------------------------------------------------------------------------
Fixed and floating rate                                                     
 bank loans due 2012 -                                                      
 2014                                                    110             95 
----------------------------------------------------------------------------
Floating rate bank loans                                                    
 due 2013                                                460            460 
----------------------------------------------------------------------------
6.125% debentures due 2041                               500            500 
----------------------------------------------------------------------------
6.75% debentures due 2019                                500            500 
----------------------------------------------------------------------------
7.125% debentures due 2036                               300            300 
----------------------------------------------------------------------------
7.7% debentures due 2017                                 100            100 
----------------------------------------------------------------------------
7.8% debentures due 2027                                 125            125 
----------------------------------------------------------------------------
Other                                                     22             23 
----------------------------------------------------------------------------
                                                       2,150          2,138 
----------------------------------------------------------------------------
Unamortized transaction                                                     
 costs                                                   (21)           (20)
----------------------------------------------------------------------------
Current portion of long-                                                    
 term debt                                              (522)           (20)
----------------------------------------------------------------------------
                                                       1,607          2,098 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

On October 1, 2012, we issued $500-million of 3.15 percent debentures due October 2022. The debentures were issued under our base shelf prospectus, which permits issuance in Canada and the U.S. of up to an additional $2.0-billion of common shares, preferred shares, subscription receipts, debt securities or units until April 2014. Issuance of further securities under the base shelf prospectus requires filing a prospectus supplement and is subject to availability of funding in capital markets.


7.  Financial Instruments                                                   
                                                                            
                                                                            
Fair value of financial instruments             Level 1   Level 2     Total 
----------------------------------------------------------------------------
September 30, 2012                                                          
----------------------------------------------------------------------------
Fair value through profit or loss                                           
----------------------------------------------------------------------------
  Cash and cash equivalents                       1,864         -     1,864 
----------------------------------------------------------------------------
  Gas, power and nutrient derivative financial                              
   instruments                                      (20)        8       (12)
----------------------------------------------------------------------------
Available for sale                                   33         -        33 
----------------------------------------------------------------------------
September 30, 2011                                                          
----------------------------------------------------------------------------
Fair value through profit or loss                                           
----------------------------------------------------------------------------
  Cash and cash equivalents                         755         -       755 
----------------------------------------------------------------------------
  Foreign exchange derivative financial                                     
   instruments                                        -        (9)       (9)
----------------------------------------------------------------------------
  Gas, power and nutrient derivative financial                              
   instruments                                      (37)       11       (26)
----------------------------------------------------------------------------
Available for sale                                   16         -        16 
----------------------------------------------------------------------------
December 31, 2011                                                           
----------------------------------------------------------------------------
Fair value through profit or loss                                           
----------------------------------------------------------------------------
  Cash and cash equivalents                       1,346         -     1,346 
----------------------------------------------------------------------------
  Foreign exchange derivative financial                                     
   instruments                                        -        (1)       (1)
----------------------------------------------------------------------------
  Gas, power and nutrient derivative financial                              
   instruments                                      (38)       12       (26)
----------------------------------------------------------------------------
Available for sale                                   10         -        10 
----------------------------------------------------------------------------
----------------------------------------------------------------------------

We do not measure any of our financial instruments using Level 3 inputs. There have been no transfers between Level 1 and Level 2 fair value measurements in the reporting period ended September 30, 2012.


8.  Accumulated Other Comprehensive Income                                  
                                                                            
                                                                      Total 
                    Available for                               accumulated 
                             sale       Foreign Comprehensive         other 
                        financial      currency       loss of comprehensive 
                      instruments   translation    associates income (loss) 
----------------------------------------------------------------------------
December 31, 2010               -            69             -            69 
----------------------------------------------------------------------------
Gains (losses)                  1          (114)            -          (113)
----------------------------------------------------------------------------
Reclassification to                                                         
 earnings                      (2)          (23)            -           (25)
----------------------------------------------------------------------------
September 30, 2011             (1)          (68)            -           (69)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
December 31, 2011              (1)           11             -            10 
----------------------------------------------------------------------------
Gains (losses)                  -            96            (1)           95 
----------------------------------------------------------------------------
September 30, 2012             (1)          107            (1)          105 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
9. Operating Segments                                                       
                                                                            
                               Three months ended         Nine months ended 
                                    September 30,             September 30, 
----------------------------------------------------------------------------
                                2012         2011         2012         2011 
----------------------------------------------------------------------------
Sales                                                                       
----------------------------------------------------------------------------
Retail                                                                      
----------------------------------------------------------------------------
  Crop nutrients                 634          692        4,028        3,507 
----------------------------------------------------------------------------
  Crop protection                                                           
   products                      872          943        3,433        3,046 
----------------------------------------------------------------------------
  Seed                            56           85        1,084        1,002 
----------------------------------------------------------------------------
  Merchandise                    105          134          392          486 
----------------------------------------------------------------------------
  Services and other             167          157          567          440 
----------------------------------------------------------------------------
                               1,834        2,011        9,504        8,481 
----------------------------------------------------------------------------
Wholesale                                                                   
----------------------------------------------------------------------------
  Nitrogen                       548          405        1,675        1,456 
----------------------------------------------------------------------------
  Potash                          80          167          465          621 
----------------------------------------------------------------------------
  Phosphate                      183          217          596          661 
----------------------------------------------------------------------------
  Product purchased for                                                     
   resale                        281          335        1,111        1,195 
----------------------------------------------------------------------------
  Other                           45           52          219          189 
----------------------------------------------------------------------------
                               1,137        1,176        4,066        4,122 
----------------------------------------------------------------------------
Advanced Technologies            125          125          438          364 
----------------------------------------------------------------------------
Other                           (134)        (171)        (583)        (674)
----------------------------------------------------------------------------
                               2,962        3,141       13,425       12,293 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
Inter-segment sales                                                         
----------------------------------------------------------------------------
  Retail                           3            3           18           21 
----------------------------------------------------------------------------
  Wholesale                      121          153          506          589 
----------------------------------------------------------------------------
  Advanced Technologies           10           15           59           64 
----------------------------------------------------------------------------
                                 134          171          583          674 
----------------------------------------------------------------------------
Net earnings                                                                
----------------------------------------------------------------------------
  Retail                          69           92          682          563 
----------------------------------------------------------------------------
  Wholesale                      312          393        1,272        1,339 
----------------------------------------------------------------------------
  Advanced Technologies           (3)          (3)           6            5 
----------------------------------------------------------------------------
  Other                         (160)         (34)        (272)        (152)
----------------------------------------------------------------------------
  Earnings before                                                           
   finance costs and                                                        
   income taxes                  218          448        1,688        1,755 
----------------------------------------------------------------------------
  Finance costs related                                                     
   to long-term debt              23           25           67           76 
----------------------------------------------------------------------------
  Other finance costs              9           17           29           42 
----------------------------------------------------------------------------
  Earnings before income                                                    
   taxes                         186          406        1,592        1,637 
----------------------------------------------------------------------------
  Income taxes                    57          113          448          456 
----------------------------------------------------------------------------
Net earnings from                                                           
 continuing operations           129          293        1,144        1,181 
----------------------------------------------------------------------------
Net earnings from                                                           
 discontinued operations           -            -            -            1 
----------------------------------------------------------------------------
Net earnings                     129          293        1,144        1,182 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                 September 30, December 31, 
----------------------------------------------------------------------------
                                                          2012         2011 
----------------------------------------------------------------------------
Total assets                                                                
----------------------------------------------------------------------------
  Retail                                                 8,183        7,685 
----------------------------------------------------------------------------
  Wholesale                                              3,999        2,997 
----------------------------------------------------------------------------
  Advanced Technologies                                    512          474 
----------------------------------------------------------------------------
  Other                                                  2,033        1,914 
----------------------------------------------------------------------------
  Discontinued                                                              
   operations                                                -           70 
----------------------------------------------------------------------------
                                                        14,727       13,140 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                 AGRIUM INC.                                
                             Results by Segment                             
                   (Unaudited - millions of U.S. dollars)                   
                                                                 Schedule 1a
                                                                            
                                            Three months ended September 30,
----------------------------------------------------------------------------
                                                                        2012
----------------------------------------------------------------------------
                                                   Advanced                 
                             Retail Wholesale  Technologies   Other    Total
----------------------------------------------------------------------------
                                                                            
Sales        - external       1,831     1,016           115       -    2,962
             - inter-segment      3       121            10    (134)       -
----------------------------------------------------------------------------
Total sales                   1,834     1,137           125    (134)   2,962
Cost of product sold          1,396       779            97    (108)   2,164
----------------------------------------------------------------------------
Gross profit                    438       358            28     (26)     798
----------------------------------------------------------------------------
Gross profit (%)                 24        31            22               27
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Selling expenses                368        10            14      (3)     389
EBITDA (1)                      121       376             4    (157)     344
EBIT (2)                         69       312            (3)   (160)     218
                                                                            
                                            Three months ended September 30,
----------------------------------------------------------------------------
                                                                        2011
----------------------------------------------------------------------------
                                                   Advanced                 
                             Retail Wholesale  Technologies   Other    Total
----------------------------------------------------------------------------
                                                                            
Sales        - external       2,008     1,023           110       -    3,141
             - inter-segment      3       153            15    (171)       -
----------------------------------------------------------------------------
Total sales                   2,011     1,176           125    (171)   3,141
Cost of product sold          1,513       779           101    (140)   2,253
----------------------------------------------------------------------------
Gross profit                    498       397            24     (31)     888
----------------------------------------------------------------------------
Gross profit (%)                 25        34            19               28
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Selling expenses                390        10            14      (5)     409
EBITDA (1)                      135       438             3     (30)     546
EBIT (2)                         92       393            (3)    (34)     448
                                                                            
(1) Earnings (loss) from continuing operations before finance costs, income 
    taxes, depreciation and amortization.                                   
(2) Earnings (loss) from continuing operations before finance costs and     
    income taxes.                                                           
                                                                            
                                 AGRIUM INC.                                
                             Results by Segment                             
                   (Unaudited - millions of U.S. dollars)                   
                                                                 Schedule 1b
                                                                            
                                             Nine months ended September 30,
----------------------------------------------------------------------------
                                                                        2012
----------------------------------------------------------------------------
                                                    Advanced                
                             Retail Wholesale   Technologies  Other    Total
----------------------------------------------------------------------------
                                                                            
Sales        - external       9,486     3,560            379      -   13,425
             - inter-segment     18       506             59   (583)       -
----------------------------------------------------------------------------
Total sales                   9,504     4,066            438   (583)  13,425
Cost of product sold          7,535     2,676            353   (607)   9,957
----------------------------------------------------------------------------
Gross profit                  1,969     1,390             85     24    3,468
----------------------------------------------------------------------------
Gross profit (%)                 21        34             19              26
----------------------------------------------------------------------------
                                                                            
Selling expenses              1,238        30             41     (9)   1,300
EBITDA (1)                      827     1,424             26   (261)   2,016
EBIT (2)                        682     1,272              6   (272)   1,688
                                                                            
                                             Nine months ended September 30,
----------------------------------------------------------------------------
                                                                        2011
----------------------------------------------------------------------------
                                                    Advanced                
                             Retail Wholesale   Technologies  Other    Total
----------------------------------------------------------------------------
                                                                            
Sales        - external       8,460     3,533            300      -   12,293
             - inter-segment     21       589             64   (674)       -
----------------------------------------------------------------------------
Total sales                   8,481     4,122            364   (674)  12,293
Cost of product sold          6,647     2,696            287   (625)   9,005
----------------------------------------------------------------------------
Gross profit                  1,834     1,426             77    (49)   3,288
----------------------------------------------------------------------------
Gross profit (%)                 22        35             21              27
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Selling expenses              1,198        29             33    (10)   1,250
EBITDA (1)                      689     1,467             22   (142)   2,036
EBIT (2)                        563     1,339              5   (152)   1,755
                                                                            
(1) Earnings (loss) from continuing operations before finance costs, income 
    taxes, depreciation and amortization.                                   
(2) Earnings (loss) from continuing operations before finance costs and     
    income taxes.                                                           
                                                                          
                                AGRIUM INC.                               
                               Product Lines                              
                  (Unaudited - millions of U.S. dollars)                  
                                                                Schedule 2
                                                                          
                                         Three months ended September 30, 
--------------------------------------------------------------------------
                                      2012                    2011        
--------------------------------------------------------------------------
                                   Cost of                 Cost of        
                                   product  Gross          product  Gross 
                            Sales  sold(1) profit   Sales  sold(1) profit 
--------------------------------------------------------------------------
Retail(2)                                                                 
 Crop nutrients               634      523    111     692      568    124 
 Crop protection products     872      670    202     943      717    226 
 Seed                          56       28     28      85       55     30 
 Merchandise                  105       88     17     134      115     19 
 Services and other           167       87     80     157       58     99 
--------------------------------------------------------------------------
                            1,834    1,396    438   2,011    1,513    498 
--------------------------------------------------------------------------
Wholesale                                                                 
 Nitrogen                     548      277    271     405      228    177 
 Potash                        80       57     23     167       65    102 
 Phosphate                    183      136     47     217      135     82 
 Product purchased for                                                    
  resale                      281      281      -     335      314     21 
 Other                         45       28     17      52       37     15 
--------------------------------------------------------------------------
                            1,137      779    358   1,176      779    397 
--------------------------------------------------------------------------
Advanced Technologies                                                     
 Turf and ornamental           67       57     10      87       71     16 
 Agriculture                   58       40     18      38       30      8 
--------------------------------------------------------------------------
                              125       97     28     125      101     24 
--------------------------------------------------------------------------
Other inter-segment                                                       
 eliminations                (134)    (108)   (26)   (171)    (140)   (31)
--------------------------------------------------------------------------
Total                       2,962    2,164    798   3,141    2,253    888 
--------------------------------------------------------------------------
--------------------------------------------------------------------------

                                                                            
                                AGRIUM INC.                                 
                               Product Lines                                
                   (Unaudited - millions of U.S. dollars)                   
                                                                  Schedule 2
                                                                            
                                            Nine months ended September 30, 
----------------------------------------------------------------------------
                                     2012                   2011            
----------------------------------------------------------------------------
                                  Cost of                Cost of            
                                  product   Gross        product      Gross 
                            Sales sold(1)  profit  Sales sold(1)     profit 
----------------------------------------------------------------------------
Retail(2)                                                                   
 Crop nutrients             4,028   3,362     666  3,507   2,891        616 
 Crop protection products   3,433   2,708     725  3,046   2,393        653 
 Seed                       1,084     887     197  1,002     805        197 
 Merchandise                  392     320      72    486     423         63 
 Services and other           567     258     309    440     135        305 
----------------------------------------------------------------------------
                            9,504   7,535   1,969  8,481   6,647      1,834 
----------------------------------------------------------------------------
Wholesale                                                                   
 Nitrogen                   1,675     806     869  1,456     804        652 
 Potash                       465     202     263    621     229        392 
 Phosphate                    596     444     152    661     401        260 
 Product purchased for                                                      
  resale                    1,111   1,082      29  1,195   1,136         59 
 Other                        219     142      77    189     126         63 
----------------------------------------------------------------------------
                            4,066   2,676   1,390  4,122   2,696      1,426 
----------------------------------------------------------------------------
Advanced Technologies                                                       
 Turf and ornamental          251     210      41    230     187         43 
 Agriculture                  187     143      44    134     100         34 
----------------------------------------------------------------------------
                              438     353      85    364     287         77 
----------------------------------------------------------------------------
Other inter-segment                                                         
 eliminations                (583)   (607)     24   (674)   (625)       (49)
----------------------------------------------------------------------------
Total                      13,425   9,957   3,468 12,293   9,005      3,288 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
(1) Includes depreciation and amortization.                                 
(2) International Retail net sales were $602-million (2011 - $611-million)  
    and gross profit was $114-million (2011 - $121-million) for the three   
    months ended September 30. International Retail net sales were $2,001-  
    million (2011 - $2,044-million) and gross profit was $353-million (2011 
    - $370-million) for the nine months ended September 30.                 


                                 AGRIUM INC.                                
                      Selected Volumes and Sales Prices                     
                                 (Unaudited)                                
                                                                 Schedule 3a
                                                                            
                                           Three months ended September 30, 
----------------------------------------------------------------------------
                                                2012                        
----------------------------------------------------------------------------
                                                        Cost of             
                                 Sales     Selling      product             
                                tonnes       price         sold      Margin 
                                (000's)   ($/tonne)    ($/tonne)   ($/tonne)
----------------------------------------------------------------------------
                                                                            
Retail                                                                      
 Crop nutrients                                                             
  Domestic                         677         612                          
  International                    349         634                          
----------------------------------------------------------------------------
 Total crop nutrients            1,026         619          509         110 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                         214         560                          
   Urea                            391         574                          
   Other                           214         372                          
---------------------------------------------------                         
  Total domestic                   819         517                          
  International                    241         517                          
----------------------------------------------------------------------------
 Total nitrogen                  1,060         517          261         256 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                         117         564                          
  International                     43         333                          
----------------------------------------------------------------------------
 Total potash                      160         503          363         140 
----------------------------------------------------------------------------
                                                                            
 Phosphate                         260         703          519         184 
                                                                            
 Product purchased for                                                      
  resale                           714         393          393           - 
                                                                            
 Other                                                                      
  Ammonium sulfate                  73         393          200         193 
  Other                             32                                      
----------------------------------------------------------------------------
 Total other                       105                                      
----------------------------------------------------------------------------
                                                                            
Total Wholesale                  2,299         495          339         156 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            

                                           Three months ended September 30, 
----------------------------------------------------------------------------
                                                2011                        
----------------------------------------------------------------------------
                                                        Cost of             
                                 Sales     Selling      product             
                                tonnes       price         sold      Margin 
                                (000's)   ($/tonne)    ($/tonne)   ($/tonne)
----------------------------------------------------------------------------
                                                                            
Retail                                                                      
 Crop nutrients                                                             
  Domestic                         763         594                          
  International                    378         630                          
----------------------------------------------------------------------------
 Total crop nutrients            1,141         606          498         108 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                         207         505                          
   Urea                            228         582                          
   Other                           222         384                          
---------------------------------------------------                         
  Total domestic                   657         491                          
  International                    160         521                          
----------------------------------------------------------------------------
 Total nitrogen                    817         497          280         217 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                         141         597                          
  International                    206         401                          
----------------------------------------------------------------------------
 Total potash                      347         480          188         292 
----------------------------------------------------------------------------
                                                                            
 Phosphate                         277         784          487         297 
                                                                            
 Product purchased for                                                      
  resale                           599         559          524          35 
                                                                            
 Other                                                                      
  Ammonium sulfate                  93         366          219         147 
  Other                             39                                      
----------------------------------------------------------------------------
 Total other                       132                                      
----------------------------------------------------------------------------
                                                                            
Total Wholesale                  2,172         541          358         183 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                 AGRIUM INC.                                
                      Selected Volumes and Sales Prices                     
                                (Unaudited)                                 
                                                                 Schedule 3b
                                                                            
                                            Nine months ended September 30, 
----------------------------------------------------------------------------
                                                2012                        
----------------------------------------------------------------------------
                                                        Cost of             
                                 Sales     Selling      product             
                                tonnes       price         sold      Margin 
                                (000's)   ($/tonne)    ($/tonne)   ($/tonne)
----------------------------------------------------------------------------
                                                                            
Retail                                                                      
 Crop nutrients                                                             
  Domestic                       5,267         625                          
  International                  1,208         612                          
----------------------------------------------------------------------------
 Total crop nutrients            6,475         622          519         103 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                         860         608                          
   Urea                          1,080         590                          
   Other                           823         375                          
---------------------------------------------------                         
  Total domestic                 2,763         531                          
  International                    399         519                          
----------------------------------------------------------------------------
 Total nitrogen                  3,162         530          255         275 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                         564         553                          
  International                    387         395                          
----------------------------------------------------------------------------
 Total potash                      951         489          213         276 
----------------------------------------------------------------------------
                                                                            
 Phosphate                         816         730          543         187 
                                                                            
 Product purchased for                                                      
  resale                         2,469         450          438          12 
                                                                            
 Other                                                                      
  Ammonium sulfate                 244         420          214         206 
  Other                            230                                      
----------------------------------------------------------------------------
 Total other                       474                                      
----------------------------------------------------------------------------
                                                                            
Total Wholesale                  7,872         517          340         177 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            

                                            Nine months ended September 30, 
----------------------------------------------------------------------------
                                                2011                        
----------------------------------------------------------------------------
                                                        Cost of             
                                 Sales     Selling      product             
                                tonnes       price         sold      Margin 
                                (000's)   ($/tonne)    ($/tonne)   ($/tonne)
----------------------------------------------------------------------------
                                                                            
Retail                                                                      
 Crop nutrients                                                             
  Domestic                       4,823         563                          
  International                  1,379         574                          
----------------------------------------------------------------------------
 Total crop nutrients            6,202         565          466          99 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Wholesale                                                                   
 Nitrogen                                                                   
  Domestic                                                                  
   Ammonia                         775         560                          
   Urea                          1,036         525                          
   Other                           811         365                          
---------------------------------------------------                         
  Total domestic                 2,622         486                          
  International                    377         485                          
----------------------------------------------------------------------------
 Total nitrogen                  2,999         486          269         217 
----------------------------------------------------------------------------
                                                                            
 Potash                                                                     
  Domestic                         669         549                          
  International                    698         362                          
----------------------------------------------------------------------------
 Total potash                    1,367         454          167         287 
----------------------------------------------------------------------------
                                                                            
 Phosphate                         842         785          476         309 
                                                                            
 Product purchased for                                                      
  resale                         2,524         473          450          23 
                                                                            
 Other                                                                      
  Ammonium sulfate                 270         359          191         168 
  Other                            206                                      
----------------------------------------------------------------------------
 Total other                       476                                      
----------------------------------------------------------------------------
                                                                            
Total Wholesale                  8,208         502          328         174 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                 AGRIUM INC.                                
            Depreciation and Amortization in Cost of Product Sold           
                   (Unaudited - millions of U.S. dollars)                   
                                                                  Schedule 4
                                                                            
                                    Three months ended     Nine months ended
                                         September 30,         September 30,
----------------------------------------------------------------------------
                                       2012       2011       2012       2011
----------------------------------------------------------------------------
                                                                            
Retail                                    1          1          4          4
----------------------------------------------------------------------------
                                                                            
Wholesale                                                                   
 Nitrogen                                19         23         57         60
 Potash                                  11          9         30         29
 Phosphate                               29         13         56         34
 Product purchased for resale             -          -          1          -
 Other                                    2          -          4          2
----------------------------------------------------------------------------
                                         61         45        148        125
----------------------------------------------------------------------------
                                                                            
Advanced Technologies                     4          3         11         10
----------------------------------------------------------------------------
                                                                            
Total                                    66         49        163        139
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
                                 AGRIUM INC.                                
          Schedule of Selected Retail and Consolidated Information          
       (Unaudited - millions of U.S. dollars, unless otherwise stated)      
                                                                            
                                                                  Schedule 5
                                                                            
                                   Rolling four quarters ended September 30,
----------------------------------------------------------------------------
                                          2012                          2011
----------------------------------------------------------------------------
                                                                            
                                                 Total                 Total
                                   Retail(4)    Agrium   Retail(4)    Agrium
----------------------------------------------------------------------------
                                                                            
Return on operating capital                                                 
 employed (%) (1)                         17        25          15        26
                                                                            
Return on capital employed (%) (2)         9        17           8        17
                                                                            
Average non-cash working capital                                            
 to sales (%)                             20        16          24        18
                                                                            
Operating coverage ratio (%) (3)          70        52          72        50
                                                                            
EBITDA to sales (%)(5)                     8        16           8        16
                                                                            
                                                                            
                                                 September 30,              
----------------------------------------------------------------------------
                                        2012                  2011          
----------------------------------------------------------------------------
                                                                            
                                                 Total                 Total
                                   Retail(4)    Agrium   Retail(4)    Agrium
----------------------------------------------------------------------------
                                                                            
Non-cash working capital               2,688     2,953       2,816     3,237
                                                                            
(1) Last twelve months EBIT less income taxes at a tax rate of 29 percent   
    divided by rolling four quarter average operating capital employed.     
    Operating capital employed includes non-cash working capital; property, 
    plant and equipment; investments in associates and other assets. Retail 
    domestic return on operating capital employed was 21 percent (2011 - 18 
    percent).                                                               
(2) Last twelve months EBIT less income taxes at a tax rate of 29 percent   
    divided by rolling four quarter average capital employed. Capital       
    employed includes operating capital employed, intangibles and goodwill. 
    Retail domestic return on capital employed was 11 percent (2011 - 9     
    percent).                                                               
(3) Selling, general and administrative, earnings from associates and other 
    expenses, divided by gross profit.                                      
(4) The ratios presented for Retail are not recognized measures under IFRS. 
    Total Agrium non-cash working capital less Retail non-cash working      
    capital equals non-cash working capital for the remaining business      
    units.                                                                  
(5) Retail domestic EBITDA to sales was 9 percent (2011 - 9 percent).       

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

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

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

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