Market Overview

Agrium Reports Third Quarter Results

CALGARY, ALBERTA--(Marketwire - Nov. 7, 2012) -

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%)
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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
----------------------------------------------------------------------------
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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).



FOR FURTHER INFORMATION PLEASE CONTACT:
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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