/EINPresswire.com/ -- CALGARY, AB--(Marketwired - February 09, 2017) - Agrium Inc. (TSX: AGU) (NYSE: AGU) announced today its 2016 fourth quarter results, with a net earnings to equity holders of Agrium of $67-million ($0.49 diluted earnings per share) compared to net earnings of $201-million ($1.45 diluted earnings per share) in the fourth quarter of 2015. The reduction in net earnings was driven primarily by lower year-over-year nutrient pricing. On an annual basis, 2016 earnings to equity holders of Agrium were $592-million ($4.29 diluted earnings per share) compared to $988-million ($6.98 diluted earnings per share) in 2015.

Highlights:

• Fourth quarter guidance relevant earnings were $94-million or $0.68 diluted earnings per share¹ which is in-line with our guidance. Retail reported record EBITDA^2,3 for the fourth quarter, supported by strong crop protection product sales and record International earnings, as Australian operations delivered a 29 percent increase in annual EBITDA in 2016.
• Cash provided by operating activities was $1.5-billion in the fourth quarter.
• Wholesale achieved record production for nitrogen this year and successfully completed construction of the 610,000 tonne urea plant at its nitrogen facility in Borger, Texas, within the previously disclosed revised timeline and cost parameters. Commissioning is underway and production is expected to commence in the first quarter of 2017.
• Agrium had a record year for retail small to mid-sized acquisitions, with over $500-million of expected annual sales.
• Agrium's commitment to Operational Excellence continued to deliver results this quarter, and on an annual basis we delivered approximately $145-million of EBITDA cash cost savings across the company. Supporting this was $66-million in fixed cost savings in Wholesale, while Retail's cash operating coverage ratio³ improved to 61 percent on an annual basis.
• Agrium has announced our 2017 annual guidance range of $4.50 to $6.00 diluted earnings per share (see page 3 for guidance assumptions and further details).

"Agrium continued to deliver solid results across our business this quarter, supported by record fourth quarter results in our Retail business and strong wholesale operating performance. We delivered on our promise of value-added growth in 2016 by successfully bringing our Borger expansion to completion and growing retail at a record pace through acquisitions," commented Chuck Magro, Agrium's President and CEO. "We have been encouraged by the recent firming in global nutrient markets and we anticipate solid demand for crop inputs in the coming spring application season," added Mr. Magro.

1	Effective tax rate of 25.5 percent for the fourth quarter and 27.3 percent for the year ended 2016 were used for the adjusted net earnings, guidance relevant earnings and per share calculations. These are non-IFRS measures which represent net earnings adjusted for certain income (expenses) that are considered to be non-operational in nature. We believe these measures provide meaningful comparison to the earnings of other companies and our guidance by eliminating share-based payments expense (recovery), gains (losses) on foreign exchange and related gains (losses) on non-qualifying derivative hedges and significant non-operating, non-recurring items. Our guidance is forward-looking information. We present guidance relevant earnings per share to provide an update to this previously disclosed forward-looking information. These should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS and may not be directly comparable to similar measures presented by other companies.
2	Earnings (loss) from operations before finance costs, income taxes, depreciation and amortization.
3	This is a non-IFRS measure. Refer to section "Non-IFRS Measures".

ADJUSTED NET EARNINGS AND GUIDANCE RELEVANT EARNINGS RECONCILIATIONS

		Three months ended						Twelve months ended
		December 31, 2016						December 31, 2016
(millions of U.S. dollars, except per share amounts)		Expense		Net earnings  (loss) impact (post-tax)		Per share (a)		Expense		Net earnings impact (post-tax)		Per share (a)
				67		0.49				596		4.29
Adjustments:
	Share-based payments	33		25		0.18		55		40		0.29
	Foreign exchange loss net of non-qualifying derivatives	3		2		0.01		13		9		0.06
	Merger and related costs	14		10		0.07		31		23		0.17
	Egyptian pound devaluation impact on MOPCO equity investment	(35	)	(26	)	(0.19	)	(35	)	(25	)	(0.18	)
	IT outsourcing costs	7		5		0.04		14		10		0.07
Adjusted net earnings(b)				83		0.60				653		4.70
Additional items not included in earnings guidance:
	Investment impairment	15		11		0.08		15		11		0.08
	Non-operational legal costs	-		-		-		18		13		0.09
	Guidance relevant earnings(b)			94		0.68				677		4.87

(a)	Diluted per share information attributable to equity holders of Agrium
(b)	Effective tax rate of 25.5 percent for the fourth quarter and 27.3 percent for the year ended was used for the adjusted net earnings, guidance relevant earnings, and per share calculations.

MARKET OUTLOOK

Agricultural and Crop Input Fundamentals

• Crop prices are similar to or higher than where they were a year ago, despite record global crop production in 2016/17.
• Strong global demand for grains and oilseeds has helped to partly offset the impact from record grain production. The United States Department of Agriculture ("USDA") projects that combined global grain and oilseed demand will grow by over 3 percent in 2016/17. Over the past four years, global demand has grown at an annual rate of 2.8 percent, which is the highest four year growth rate in the past thirty five years.
• We expect growers will continue to be cautious when making crop input decisions in 2017, despite improved margins partly associated with lower crop input prices. North American crop input prepay levels are higher than the same time last year, partly due to strong anticipated spring nutrient purchases in Canada due to the shortened fall ammonia season in 2016.
• We expect U.S. corn acreage to be between 90 million to 92 million acres in 2017, down from 94 million acres in 2016. We anticipate the decline in corn acreage to result in a 1 to 3 percent decline in 2016/17 U.S. crop nutrient demand, as well as lower expenditures on seed. However, total crop protection expenditures are expected to be relatively stable in 2017.

Nitrogen

• Global nitrogen prices rallied in late 2016 and early 2017, with benchmark urea and ammonia prices up between $80 and over $100 per tonne from second half 2016 lows. The rise in nitrogen prices was primarily in response to reduction in supply and export availability from China and Eastern Europe, largely due to low global prices earlier in the year.
• Chinese coal prices increased by between 40 and 140 percent between the low and high of 2016, depending on the type of coal. The increase in costs and relatively low global urea prices resulted in Chinese urea exports in the fourth quarter declining by more than 65 percent year-over-year, while annual exports declined from 13.8 million tonnes in 2015 to 8.9 million tonnes in 2016. We anticipate exports will decline further in 2017 to between six and eight million tonnes, despite the recent removal of the Chinese urea export tax in late 2016.
• U.S. offshore imports of urea were down more than one million tonnes in the second half of 2016 compared to 2015 levels, which was more than double the estimated increase in domestic production during the same time period. The shortfall in supply has lent further support to urea prices in early 2017.

Potash

• Strong potash demand supported global potash prices in the second half of 2016 and into the first half of 2017 as most potash buyers had relatively low inventories by the end of 2016. We expect that global potash shipments will be between 60 to 62 million tonnes in 2017, up from 59 million tonnes in 2016.
• Analysts expect new potash capacity to begin ramping up in the first half of 2017, which would increase available supply in the second half of 2017, however much will depend on the rate at which new supplies become available relative to the rate of international demand growth.

Phosphate

• The phosphate market was relatively weak by the end of 2016, in part due to strong exports from China late in the year; however, exportable supplies from China have tightened in early 2017 and both global and North American prices have recently increased as a result.
• Increased raw material costs are also supportive of phosphate prices, particularly the rise in the price of ammonia.

2017 ANNUAL GUIDANCE

Based on our assumptions set out under the heading "Market Outlook", Agrium expects to achieve annual diluted earnings per share of $4.50 to $6.00 in 2017. We have maintained a range width encompassing approximately $300-million of EBITDA variability to reflect the risk and opportunity associated with crop nutrient prices and demand for crop inputs at this time of year. We are assuming a normal spring and fall application season, recognizing there is always a risk that inclement weather could affect the timing and duration of each season. Our earnings per share guidance assumes some recovery from current nitrogen prices during the key application seasons.

Based on these and other assumptions regarding prices and demand for crop nutrients set out under the heading "Market Outlook", we expect Retail EBITDA to be $1.125-billion to $1.225-billion, and Retail nutrient sales volumes to range between 10.2 million to 10.6 million tonnes in 2017.

Based on our expected increase in utilization rate for our nitrogen assets, we anticipate nitrogen production to total 3.6 to 3.8 million tonnes. Agrium continues its hedging program for gas requirements in 2017 and is monitoring the market to mitigate any upward pressure on prices through near-term hedging. Our earnings per share guidance assumes NYMEX gas prices will be between $3.05 and $3.85 per MMBtu in 2017.

Agrium's expectation for potash production in 2017 assumes the full ramp-up of production following the expansion project at our Vanscoy mine. We expect to produce between 2.4 and 2.8 million tonnes of potash in 2017.

Total capital expenditures are expected to be in the range of $650-million to $750-million, of which approximately $500-million to $550-million is expected to be sustaining capital expenditures.

Agrium's annual effective tax rate for 2017 is expected to range between 27 to 29 percent.

This guidance and updated additional measures and related assumptions are summarized in the table below. Guidance excludes the impact of share-based payments expense (recovery), gains (losses) on foreign exchange and non-qualifying derivative hedges, and merger related costs. Volumetric and earnings estimates assume normal seasonal growing and harvest patterns in the geographies where Agrium operates.

2017 ANNUAL GUIDANCE RANGE AND ASSUMPTIONS

			Annual
			Low		High
Diluted EPS (in U.S. dollars)			$4.50		$6.00
Guidance assumptions:
Wholesale:
	Production tonnes:
		Nitrogen (millions)	3.6		3.8
		Potash (millions)	2.4		2.8
Retail:
	EBITDA (millions of U.S. dollars)		$1,125		$1,225
	Crop nutrient sales tonnes (millions)		10.2		10.6
Other:
	Tax rate		29	%	27	%
	Sustaining capital expenditures (millions of U.S. dollars)		$500		$550
	Total capital expenditures (millions of U.S. dollars)		$650		$750

February 9, 2017

All comparisons of results for the fourth quarter of 2016 (three months ended December 31, 2016) and for the twelve months ended December 31, 2016 are against results for the fourth quarter of 2015 (three months ended December 31, 2015) and twelve months ended December 31, 2015. All dollar amounts refer to United States (U.S.) dollars except where otherwise stated. This news release should be read in conjunction with our audited annual financial statements and related notes, prepared in accordance with IFRS, contained in our 2015 Annual Report, available at www.agrium.com.

The financial measures cash operating coverage ratio, cash selling and general and administrative expenses, cash cost of product manufactured, and EBITDA used in this news release are not prescribed by, and do not have any standardized meaning under International Financial Reporting Standards (IFRS). Our method of calculation may not be directly comparable to that of other companies. We consider these non-IFRS financial measures to provide useful information to both management and investors in measuring our financial performance and financial condition. These non-IFRS financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS. Please refer to the section entitled "Non-IFRS Financial Measures" for further details, including a reconciliation of such measures to their most directly comparable measure calculated in accordance with IFRS.

2016 Fourth Quarter Operating Results

CONSOLIDATED NET EARNINGS

Financial Overview
	Three months ended December 31,
(millions of U.S. dollars, except per share amounts and where noted)	2016		2015		Change		% Change
Sales	2,280		2,407		(127	)	(5	)
Gross profit	748		900		(152	)	(17	)
Expenses	586		576		10		2
Earnings before finance costs and income taxes (EBIT)	162		324		(162	)	(50	)
Net earnings	67		200		(133	)	(67	)
Diluted earnings per share	0.49		1.45		(0.96	)	(66	)
Effective tax rate (%)	25		20		N/A		N/A

Sales and Gross Profit
		Three months ended December 31,
(millions of U.S. dollars)		2016		2015		Change
Sales
	Retail	1,828		1,765		63
	Wholesale	657		888		(231	)
	Other	(205	)	(246	)	41
		2,280		2,407		(127	)
Gross profit
	Retail	623		599		24
	Wholesale	134		320		(186	)
	Other	(9	)	(19	)	10
		748		900		(152	)

• Retail's sales and gross profit increased in the fourth quarter of 2016 primarily as a result of higher crop protection product sales due to higher demand for herbicides and glyphosate in the U.S. Corn Belt and favorable weather conditions in Australia.
• Wholesale's sales and gross profit decreased in the fourth quarter compared to the same period last year due to lower market prices for all nutrients.

Expenses

• General and administrative expenses decreased by $9-million (12 percent) as a result of organization-wide cost control measures.
• Earnings from associates and joint ventures increased as a result of the devaluation of the Egyptian pound that led to a $35-million foreign exchange gain in MOPCO, net of tax.
• Our share price increased during the current quarter leading to higher share-based payments expense of $18-million.
• Other expenses increased during the quarter primarily due to the following:
  • Merger and related costs of $14-million
  • Impairment loss of $15-million related to an international investment
  • Information Technology outsourcing costs of $7-million

For further breakdown on Other expenses, see table below:

Other expenses breakdown
	Three months ended December 31,
(millions of U.S. dollars)	2016		2015
Loss (gain) on foreign exchange and related derivatives	3		(5	)
Interest income	(17	)	(16	)
Gain on sale of assets	-		(17	)
Asset impairment	15		19
Environmental remediation and asset retirement obligations	1		1
Bad debt expense	3		4
Potash profit and capital tax	2		3
Merger and related costs	14		-
Outsourcing costs	7		-
Other	15		38
	43		27

Depreciation and Amortization

Depreciation and amortization breakdown

		Three months ended December 31,
		2016								2015
(millions of U.S. dollars)		Cost of product sold		Selling		General and administrative		Total		Cost of product sold		Selling		General and administrative		Total
Retail		1		66		1		68		1		64		1		66
Wholesale
	Nitrogen	22		-		1		23		18		-		-		18
	Potash	26		-		-		26		28		-		-		28
	Phosphate	15		-		-		15		14		-		-		14
	Wholesale Other (a)	3		-		-		3		4		-		1		5
		66		-		1		67		64		-		1		65
Other		-		-		6		6		-		-		4		4
Total		67		66		8		141		65		64		6		135

(a)	This includes product purchased for resale, ammonium sulfate, Environmentally Smart Nitrogen® (ESN) and other products.

Effective Tax Rate

• The effective tax rate of 25 percent for the fourth quarter of 2016 was higher than the tax rate of 20 percent for the same period in 2015 due to a decrease in the recognition of previously unrecognized tax assets in Canada.

BUSINESS SEGMENT PERFORMANCE

Retail
	Three months ended December 31,
(millions of U.S. dollars, except where noted)	2016		2015		Change
Sales	1,828		1,765		63
Cost of product sold	1,205		1,166		39
Gross profit	623		599		24
EBIT	134		133		1
EBITDA	202		199		3
Selling and general and administrative expenses	502		491		11

• Retail reported record fourth quarter gross profit and EBITDA¹, supported by robust demand for crop protection products and application services in the U.S and Australia. On an annual basis, Retail, and specifically Australia, reported record EBITDA while U.S. operations reported a record EBITDA to sales margin of 10.4 percent supported by higher margin proprietary product sales and cost savings.
• Total Retail selling and general and administrative expenses were up $11-million from the fourth quarter of last year. However, total cash expenses were down by $12-million after adjusting for costs associated with the retail locations acquired in 2016. Our cash operating coverage ratio also improved due to our continued focus on Operational Excellence, moving down to 61 percent on a rolling four quarter basis from 62 percent for the same period last year.
• Regionally, U.S. EBITDA was up slightly this quarter, while our Canadian operations reported weaker results due to an early winter, which shortened the fall application season. Australia reported a $20-million increase in EBITDA primarily due to strong crop protection product sales and accompanying application services. Our South American Retail operations reported slightly higher gross profit but lower EBITDA this quarter.

1	Net earnings (loss) before finance costs, income taxes, depreciation and amortization, and net earnings (loss) from discontinued operations.

Retail sales and gross profit by product line
	Three months ended December 31,
	Sales						Gross profit						Gross profit (%)
(millions of U.S. dollars, except where noted)	2016		2015		Change		2016		2015		Change		2016		2015
Crop nutrients	779		843		(64	)	147		154		(7	)	19		18
Crop protection products	620		541		79		296		268		28		48		50
Seed	101		75		26		43		54		(11	)	43		72
Merchandise	167		156		11		27		27		-		16		17
Services and other	161		150		11		110		96		14		68		64

Crop nutrients

• Total crop nutrient sales were 8 percent lower this quarter compared to the same period last year, due to significantly lower prices across all nutrients, partly offset by higher crop nutrient volumes.
• The increase in crop nutrient volumes was due primarily to a 26 percent increase in U.S. sales tonnes this quarter, partly offset by a slight decline in nutrient volumes in Canada due to some fall weather challenges.
• Total crop nutrient gross profit was 5 percent lower this quarter due to lower selling prices and margins. North American nutrient per tonne margins were down $19 this quarter due to weaker nutrient prices, but margins as a percentage of sales rose to 19 percent this quarter compared to 18 percent in the fourth quarter of 2015.

Crop protection products

• Total crop protection product sales were up 15 percent this quarter due to strong demand in Australia, an open window in the U.S. for fall applications and some catch up in demand for crop protection products resulting from the reduced sales of these products experienced during the third quarter.
• Gross profit in the fourth quarter was up 10 percent over last year due to strong volumes and an increase in proprietary product sales. Crop protection product margins as a percentage of sales were down slightly this quarter as a result of a higher sales mix to wholesalers and selling higher volumes of lower margin products such as glyphosate, which is used for post-harvest burndown.
• Proprietary crop protection product sales as a percentage of total crop protection product sales reached 18 percent this quarter, up two percentage points over the same period last year. On an annual basis, proprietary crop protection sales grew 11 percent in 2016 and represented 24 percent of total crop protection product sales this year.

Seed

• Total seed sales were 35 percent higher this period compared to last year due to increased sales of product to wholesalers in the U.S and higher demand in Australia. Gross profit declined by 20 percent, partly related to the higher sales mix to wholesalers which traditionally represents lower margins. As a result, total seed margins as a percentage of sales was 43 percent this quarter - a 29 percent decrease from the fourth quarter of 2015. On an annual basis, however, seed margins were 20 percent the same as in 2015.

Merchandise

• Merchandise sales increased 7 percent, while gross profit remained in line with the same period last year. The increase in sales was primarily due to stronger results in Australia and increased merchandise sales in the U.S. due to some of the recent retail acquisitions.

Services and other

• Sales for services and other was up 7 percent this quarter, while gross profit was 15 percent higher. The increase in sales and profit was related to higher crop nutrient and crop protection product applications in the U.S. and Australia this quarter.

Wholesale
	Three months ended December 31,
(millions of U.S. dollars, except where noted)	2016		2015		Change
Sales	657		888		(231	)
Sales volumes (tonnes 000's)	2,273		2,292		(19	)
Cost of product sold	523		568		(45	)
Gross profit	134		320		(186	)
EBIT	149		287		(138	)
EBITDA	216		352		(136	)
Expenses (including earnings from associates and joint ventures)	(15	)	33		(48	)
Earnings from associates and joint ventures	(34	)	(2	)	(32	)

• Wholesale earnings this quarter were primarily impacted by lower global fertilizer prices across all nutrients compared to the same period last year. This was partly offset by lower fixed costs related to ongoing Operational Excellence initiatives.

Wholesale NPK product information
	Three months ended December 31,
	Nitrogen						Potash						Phosphate
	2016		2015		Change		2016		2015		Change		2016		2015		Change
Gross profit (U.S. dollar millions)	85		186		(101	)	21		63		(42	)	8		37		(29	)
Sales volumes (tonnes 000's)	954		912		42		590		656		(66	)	303		325		(22	)
Selling price ($/tonne)	298		403		(105	)	179		267		(88	)	475		610		(135	)
Cost of product sold ($/tonne)	209		199		10		143		171		(28	)	449		495		(46	)
Gross margin ($/tonne)	89		204		(115	)	36		96		(60	)	26		115		(89	)

Nitrogen

• Nitrogen gross profit was down 54 percent compared to the same period last year primarily due to significantly lower global nitrogen prices.
• Sales volumes were slightly higher than the same period last year due to strong demand for urea and nitrogen solutions. Ammonia sales volumes were 11 percent lower than the same period last year as a result of the early winter weather in Western Canada and the Northern Plains of the U.S. this year.
• Realized selling prices per tonne were down 26 percent compared to the same period last year due to lower global benchmark nitrogen prices.
• Cost of product sold per tonne increased by 5 percent compared to the same period last year partly due to higher natural gas input costs. Partially offsetting this were higher utilization rates and lower fixed costs at our facilities. Average nitrogen margins were $89 per tonne this quarter, while ammonia and urea margins averaged approximately $100 per tonne.

Natural gas prices: North American indices and North American Agrium prices
	Three months ended December 31,
(U.S. dollars per MMBtu)	2016		2015
Overall gas cost excluding realized derivative impact	2.52		2.15
Realized derivative impact	0.07		0.31
Overall gas cost	2.59		2.46
Average NYMEX	2.99		2.28
Average AECO	2.12		2.00

Potash

• Potash gross profit declined by 67 percent compared to the same period last year due to lower global potash prices.
• Sales volumes were 10 percent lower in the current period primarily due to lower opening inventory levels this year.
• Realized selling prices have declined over the past year with selling prices down 33 percent internationally and 25 percent for North American markets compared to the same period last year.
• Our cost of product sold per tonne was 16 percent lower than the same period last year due to a product mix with higher proportion of sales to offshore markets, where freight is excluded from cost of product sold. A weaker Canadian dollar and fixed cost savings also contributed to reduced costs this quarter. Cash cost of product manufactured on an annual basis also declined by 18 percent to $79 per tonne compared to 2015 due to higher production volumes and lower fixed costs.

Phosphate

• Phosphate gross profit was 78 percent lower than the same period last year due to continuing pressure on phosphate benchmark prices. Lower sales volumes also contributed to the decline in gross profit but were more than offset by lower cost of product sold per tonne.
• Sales volumes were 7 percent lower than the same period last year due to an early winter in Western Canada this quarter and a shorter window for fall applications of phosphate.
• Cost of product sold per tonne was down 9 percent compared to the same period last year due to lower input costs and the lower Canadian dollar benefiting the Redwater phosphate facility.

Wholesale Other
Wholesale Other: gross profit breakdown
	Three months ended December 31,
(millions of U.S. dollars)	2016		2015		Change
Ammonium sulfate	11		16		(5	)
ESN	8		15		(7	)
Product purchased for resale	-		1		(1	)
Other	1		2		(1	)
	20		34		(14	)

• Gross profit from Wholesale Other was lower than the same period last year primarily due to overall lower realized nutrient prices. This was partly offset by higher sales volumes of ESN and ammonium sulfate this quarter.

Expenses

• Wholesale expenses decreased by $48-million in the current quarter due to higher equity earnings of $32-million from our investments, primarily as a result of the Egyptian pound devaluation leading to a foreign exchange gain; a 16 percent reduction in selling, general and administrative expenses as a result of our on-going Operational Excellence initiatives; and a $19-million goodwill impairment on our Europe purchased for resale business included in the same period last year. This was partially offset by a $17-million gain on the sale of the West Sacramento nitrogen upgrading facility recognized in the same period last year.

Other

EBITDA for our Other non-operating business unit for the fourth quarter of 2016 had a net expense of $115-million, compared to a net expense of $92-million for the fourth quarter of 2015. The variance was primarily due to:

• Merger and related costs of $14-million
• An increase of $18-million in share-based payments expense as a result of an increase in our share price
• Impairment loss of $15-million on an international investment
• Partially offset by a $10-million decrease in gross profit elimination as a result of lower intersegment inventory held at the end of the fourth quarter of 2016

Capital Spending and Expenditures (a)
		Three months ended				Twelve months ended
		December 31,				December 31,
(millions of U.S. dollars)		2016		2015		2016		2015
Retail
	Sustaining	23		38		111		141
	Investing	21		12		50		37
		44		50		161		178
	Acquisitions (b)	26		42		342		127
		70		92		503		305
Wholesale
	Sustaining	38		189		244		388
	Investing	90		26		312		604
		128		215		556		992
Other
	Sustaining	1		9		4		12
	Investing	-		4		3		6
		1		13		7		18
Total
	Sustaining	62		236		359		541
	Investing	111		42		365		647
		173		278		724		1,188
	Acquisitions (b)	26		42		342		127
		199		320		1,066		1,315

(a)	This excludes capitalized borrowing costs.
(b)	This represents business acquisitions and includes acquired working capital; property, plant and equipment; intangibles; goodwill; and investments in associates and joint ventures.

• Our total capital expenditures decreased in the fourth quarter and twelve months of 2016 compared to the same periods last year due to the ramp-up of our Vanscoy potash facility in 2015 combined with decreased spending on the Borger project in 2016.
• We completed the acquisitions of 16 farm centers located in the provinces of Alberta and Saskatchewan from Andrukow Group Solutions Inc. and 18 farm centers located across the northern U.S. Corn Belt region from Cargill AgHorizons (U.S.) in 2016.

SHARE REPURCHASES

Pursuant to the agreement dated September 11, 2016 with PotashCorp, under which the companies will combine in a merger of equals, we are restricted from purchasing our outstanding shares prior to completion of the proposed plan of arrangement. No shares were repurchased under the Normal Course Issuer Bid in 2016 or the period from January 1, 2017 to February 18, 2017. During 2015, we purchased for cancellation 5,574,331 shares at an average share price of $100.25.

OUTSTANDING SHARE DATA

Agrium had 138,176,000 outstanding shares at February 3, 2017. At February 3, 2017, 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 937,528.

SELECTED QUARTERLY INFORMATION
(millions of U.S. dollars, except per share amounts)		2016 Q4		2016 Q3		2016 Q2		2016 Q1		2015 Q4		2015 Q3		2015 Q2		2015 Q1
Sales		2,280		2,245		6,415		2,725		2,407		2,524		6,992		2,872
Gross profit		748		568		1,525		554		900		696		1,708		584
Net earnings (loss)		67		(39	)	565		3		200		99		675		14
Earnings (loss) per share attributable to equity holders of Agrium:
	Basic and diluted	0.49		(0.29	)	4.08		0.02		1.45		0.72		4.71		0.08
Dividends declared		121		120		122		121		121		120		125		112
Dividends declared per share		0.875		0.875		0.875		0.875		0.875		0.875		0.875		0.780

The agricultural products business is seasonal. Consequently, year-over-year comparisons are more appropriate than quarter-over-quarter comparisons. Crop input sales are primarily concentrated in the spring and fall crop input application seasons. Crop nutrient inventories are normally accumulated leading up to each application season. Our cash collections from accounts receivables generally occur after the application season is complete, and our customer prepayments are concentrated in December and January.

NON-IFRS FINANCIAL MEASURES

Financial measures that are not specified, defined or determined under IFRS are non-IFRS measures unless they are presented in our Consolidated Financial Statements. The following table outlines our non-IFRS financial measures, their definitions and why management uses the measures.

Non-IFRS financial measure		Definition		Why we use the measure and why it is useful to investors
Cash operating coverage ratio		Cash operating coverage ratio represents gross profit excluding depreciation and amortization less EBITDA, divided by gross profit excluding depreciation and amortization.		Assists management and investors in understanding the costs and underlying economics of our operations and in assessing our operating performance and our ability to generate free cash flow from our business units and overall as a company.
Cash selling and general and administrative expenses		Selected financial measures excluding depreciation and amortization.
EBITDA		Net earnings (loss) before finance costs, income taxes, depreciation and amortization, and net earnings (loss) from discontinued operations.		EBITDA is frequently used by investors and analysts for valuation purposes when multiplied by a factor to estimate the enterprise value of a company. EBITDA is also used in determining annual incentive compensation for certain management employees and in calculating certain of our debt covenants.
Cash cost of product manufactured (COPM)		All fixed and variable costs are accumulated in cash COPM excluding depreciation and amortization expense and direct freight.		Enables investors to better understand the performance of our manufactured operations compared to other crop nutrient producers.
		When cash COPM costs are divided by the production tonnes for the period, the result is actual cash COPM per tonne, which is compared to the standard cash COPM per tonne - a calculation of fixed and variable costs for a standard or typical period of production. The standard cash COPM per tonne is multiplied by the production tonnes for the period, and the resulting dollar amount is transferred to inventory. Any remaining costs are recorded directly to cost of product sold as production volume or cost efficiency variances. Direct freight is a transportation cost to move the product from an Agrium location to the point of sale. There is no directly comparable IFRS measure for cash COPM.

Retail cash operating coverage ratio
	Rolling four quarters ended December 31,
(millions of U.S. dollars, except as noted)	2016		2015
Gross profit	2,786		2,728
Depreciation and amortization in cost of product sold	6		6
Gross profit excluding depreciation and amortization	2,792		2,734
EBITDA	1,091		1,033
Operating expenses excluding depreciation and amortization	1,701		1,701
Cash operating coverage ratio (%)	61		62

Cash selling and general and administrative expenses
	Three months ended December 31,
(millions of U.S. dollars)	2016		2015		2016		2015		2016		2015
	Retail				Wholesale				Consolidated
Selling	476		462		9		7		480		465
Depreciation and amortization in selling expense	66		64		-		-		66		64
Cash selling	410		398		9		7		414		401
General and administrative	26		29		7		12		65		74
Depreciation and amortization in general and administrative	1		1		1		1		8		6
Cash general and administrative	25		28		6		11		57		68

	Three months ended December 31,
Consolidated and business unit EBITDA
(millions of U.S. dollars)	Retail		Wholesale		Other		Consolidated
2016
Net earnings							67
Finance costs related to long-term debt							51
Other finance costs							21
Income taxes							23
EBIT	134		149		(121	)	162
Depreciation and amortization	68		67		6		141
EBITDA	202		216		(115	)	303
2015
Net earnings							200
Finance costs related to long-term debt							53
Other finance costs							20
Income taxes							51
EBIT	133		287		(96	)	324
Depreciation and amortization	66		65		4		135
EBITDA	199		352		(92	)	459

FORWARD-LOOKING STATEMENTS

Certain statements and other information included in this document constitute "forward-looking information" and/or "financial outlook" within the meaning of applicable Canadian securities legislation or constitute "forward-looking statements" within the meaning of applicable U.S. securities legislation (collectively, the "forward-looking statements"). All statements in this news release 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: 2017 annual guidance, including expectations regarding our diluted earnings per share and Retail EBITDA; capital spending expectations for 2017; expectations regarding performance of our business segments in 2017; expectations regarding completion of previously announced expansion projects (including timing and volumes of production associated therewith) and acquisitions; our market outlook for 2017, including nitrogen, potash and phosphate outlook and including anticipated supply and demand for our products and services, expected market and industry conditions with respect to crop nutrient application rates, planted acres, crop mix, prices and the impact of currency fluctuations and import and export volumes; and the proposed merger with PotashCorp, including timing of completion thereof. These forward-looking statements are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, which could cause actual results to differ materially from such forward-looking statements. As such, undue reliance should not be placed on these 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 referred to below and elsewhere in this document. 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 additional key assumptions that have been made include, among other things, assumptions with respect to Agrium's ability to successfully integrate and realize the anticipated benefits of its already completed and future acquisitions and that we will be able to implement our standards, controls, procedures and policies at any acquired businesses to realize the expected synergies; that future business, regulatory and industry conditions will be within the parameters expected by Agrium, including with respect to prices, margins, product availability and supplier agreements; the completion of our expansion projects on schedule, as planned and on budget; assumptions with respect to global economic conditions and the accuracy of our market outlook expectations for 2017 and in the future; the adequacy of our cash generated from operations and our ability to access our credit facilities or capital markets for additional sources of financing; our ability to identify suitable candidates for acquisitions and negotiate acceptable terms; our ability to maintain our investment grade rating and achieve our performance targets; the receipt, on time, of all necessary permits, utilities and project approvals with respect to our expansion projects and that we will have the resources necessary to meet the projects' approach; the receipt, on a timely basis, of regulatory approvals in respect of the proposed merger with PotashCorp and satisfaction of other closing conditions relating thereto. Also refer to the discussion under the heading "Key Assumptions and Risks in Respect of Forward-Looking Statements" in our 2015 annual MD&A and under the heading "Market Outlook" herein, with respect to further material assumptions associated with our forward-looking statements.

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 global economic, market and business conditions; weather conditions, including impacts from regional flooding and/or drought conditions; crop planted acreage, yield and prices; the supply and demand and price levels for our major products may vary from what we currently anticipate; 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, regional natural gas supply restrictions, as well as counterparty and sovereign risk; delays in completion of turnarounds at our major facilities; gas supply interruptions at the Egyptian Misr Fertilizers Production Company S.A.E. nitrogen facility expansion in Egypt; the risk of additional capital expenditure cost escalation or delays in respect of our expansion projects; the risks that are inherent in the nature of the proposed merger with PotashCorp, including the failure to obtain required regulatory approvals and failure to satisfy all other closing conditions in accordance with the terms of the proposed merger with PotashCorp, in a timely manner or at all; 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 U.S. including those disclosed under the heading "Risk Factors" in our Annual Information Form for the year ended December 31, 2015 and under the headings "Enterprise Risk Management" and "Key Assumptions and Risks in respect of Forward-Looking Statements" in our 2015 annual MD&A.

The purpose of our expected diluted earnings per share and Retail EBITDA guidance range is to assist readers in understanding our expected and targeted financial results, and this information may not be appropriate for other purposes.

Agrium disclaims any intention or obligation to update or revise any forward-looking statements in this document 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 global producer and distributor of agricultural products, services and solutions. Agrium produces nitrogen, potash and phosphate fertilizers, with a combined wholesale nutrient capacity of over nine million tonnes and with significant competitive advantages across our product lines. We supply key products and services directly to growers, including crop nutrients, crop protection, seed, as well as agronomic and application services, thereby helping growers to meet the ever growing global demand for food and fiber. Agrium retail-distribution has an unmatched network of over 1,400 facilities and over 3,800 crop consultants who provide advice and products to our grower customers to help them increase their yields and returns on hundreds of different crops. With a focus on sustainability, the company strives to improve the communities in which it operates through safety, education, environmental improvement and new technologies such as the development of precision agriculture and controlled-release nutrient products. Agrium is focused on driving operational excellence across our businesses, pursuing value-enhancing growth opportunities and returning capital to shareholders. For more information visit: www.agrium.com.

A WEBSITE SIMULCAST of the 2016 4^th Quarter Conference Call will be available in a listen-only mode beginning Friday, February 10, 2017 at 8:00 a.m. MT (10:00 a.m. ET). Please visit the following website: www.agrium.com.

AGRIUM INC.
Consolidated Statements of Operations
(Unaudited)
		Three months ended				Twelve months ended
		December 31,				December 31,
(millions of U.S. dollars, unless otherwise stated)		2016		2015		2016		2015
Sales		2,280		2,407		13,665		14,795
Cost of product sold		1,532		1,507		10,270		10,907
Gross profit		748		900		3,395		3,888
Expenses
	Selling	480		465		1,914		1,921
	General and administrative	65		74		242		268
	Share-based payments	33		15		55		51
	(Earnings) loss from associates and joint ventures	(35	)	(5	)	(66	)	4
	Other expenses	43		27		152		28
Earnings before finance costs and income taxes		162		324		1,098		1,616
	Finance costs related to long-term debt	51		53		204		181
	Other finance costs	21		20		74		71
Earnings before income taxes		90		251		820		1,364
	Income taxes	23		51		224		376
Net earnings		67		200		596		988
Attributable to
	Equity holders of Agrium	67		201		592		988
	Non-controlling interest	-		(1	)	4		-
Net earnings		67		200		596		988
Earnings per share attributable to equity holders of Agrium
	Basic and diluted earnings per share	0.49		1.45		4.29		6.98
	Weighted average number of shares outstanding for basic and diluted earnings per share (millions of common shares)	138		138		138		142
See accompanying notes.

Basis of preparation and statement of compliance

These consolidated interim financial statements ("interim financial statements") were prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board and were approved for issuance by the Audit Committee on February 9, 2017. These interim financial statements do not include all information and disclosures normally provided in annual or quarterly financial statements and should be read in conjunction with our audited annual financial statements and related notes, prepared in accordance with IFRS, contained in our 2015 Annual Report, available at www.agrium.com.

The accounting policies applied in these interim financial statements are the same as those applied in our audited annual financial statements in our 2015 Annual Report.

AGRIUM INC.
Consolidated Statements of Comprehensive Income
(Unaudited)
					Three months ended				Twelve months ended
					December 31,				December 31,
(millions of U.S. dollars)					2016		2015		2016		2015
Net earnings					67		200		596		988
	Other comprehensive (loss) income
		Items that are or may be reclassified to earnings
			Cash flow hedges
				Effective portion of changes in fair value	19		(15	)	7		(45	)
				Deferred income taxes	(5	)	4		(1	)	12
			Share of comprehensive (loss) income of associates and joint ventures		(36	)	1		(34	)	(6	)
			Foreign currency translation
				(Losses) gains	(94	)	(85	)	59		(617	)
				Reclassifications to earnings	-		7		-		8
					(116	)	(88	)	31		(648	)
		Items that will never be reclassified to earnings
			Post-employment benefits
				Actuarial gains (losses)	15		14		(10	)	14
				Deferred income taxes	(4	)	(5	)	3		(4	)
					11		9		(7	)	10
	Other comprehensive (loss) income				(105	)	(79	)	24		(638	)
Comprehensive (loss) income					(38	)	121		620		350
Attributable to
	Equity holders of Agrium				(38	)	124		616		350
	Non-controlling interest				-		(3	)	4		-
Comprehensive (loss) income					(38	)	121		620		350
See accompanying notes.

AGRIUM INC.
Consolidated Balance Sheets
(Unaudited)
				December 31,
(millions of U.S. dollars)				2016		2015
Assets
	Current assets
		Cash and cash equivalents		412		515
		Accounts receivable		2,208		2,053
		Income taxes receivable		33		4
		Inventories		3,230		3,314
		Prepaid expenses and deposits		855		688
		Other current assets		123		144
				6,861		6,718
	Property, plant and equipment			6,818		6,333
	Intangibles			566		632
	Goodwill			2,095		1,980
	Investments in associates and joint ventures			541		607
	Other assets			48		54
	Deferred income tax assets			34		53
				16,963		16,377
Liabilities and shareholders' equity
	Current liabilities
		Short-term debt		604		835
		Accounts payable		4,662		3,919
		Income taxes payable		17		82
		Current portion of long-term debt		110		8
		Current portion of other provisions		59		85
				5,452		4,929
	Long-term debt			4,398		4,513
	Post-employment benefits			141		124
	Other provisions			322		336
	Other liabilities			68		85
	Deferred income tax liabilities			408		383
				10,789		10,370
	Shareholders' equity
		Share capital		1,766		1,757
		Retained earnings		5,634		5,533
		Accumulated other comprehensive loss		(1,231	)	(1,287	)
		Equity holders of Agrium		6,169		6,003
		Non-controlling interest		5		4
		Total equity		6,174		6,007
				16,963		16,377
See accompanying notes.

AGRIUM INC.
Consolidated Statements of Cash Flows
(Unaudited)
			Three months ended				Twelve months ended
			December 31,				December 31,
(millions of U.S. dollars)			2016		2015		2016		2015
Operating
	Net earnings		67		200		596		988
	Adjustments for
		Depreciation and amortization	141		135		532		480
		(Earnings) loss from associates and joint ventures	(35	)	(5	)	(66	)	4
		Share-based payments	33		15		55		51
		Unrealized (gain) loss on derivative financial instruments	-		(28	)	36		(21	)
		Unrealized foreign exchange loss (gain)	1		(12	)	(19	)	(35	)
		Interest income	(17	)	(16	)	(66	)	(68	)
		Finance costs	72		73		278		252
		Income taxes	23		51		224		376
		Other	26		2		23		(20	)
	Interest received		16		16		66		70
	Interest paid		(49	)	(51	)	(272	)	(212	)
	Income taxes paid		(14	)	(30	)	(291	)	(111	)
	Dividends from associates and joint ventures		68		-		116		2
	Net changes in non-cash working capital		1,130		743		455		(93	)
Cash provided by operating activities			1,462		1,093		1,667		1,663
Investing
	Business acquisitions, net of cash acquired		(26	)	(42	)	(342	)	(127	)
	Capital expenditures		(173	)	(278	)	(724	)	(1,188	)
	Capitalized borrowing costs		(6	)	(8	)	(24	)	(45	)
	Purchase of investments		(16	)	(18	)	(77	)	(128	)
	Proceeds from sale of investments		19		18		97		83
	Proceeds from sale of property, plant and equipment		2		27		16		104
	Other		51		(11	)	33		(4	)
	Net changes in non-cash working capital		10		(9	)	5		(198	)
Cash used in investing activities			(139	)	(321	)	(1,016	)	(1,503	)
Financing
	Short-term debt		(1,092	)	(932	)	(188	)	(514	)
	Long-term debt issued		-		-		-		1,000
	Transaction costs on long-term debt		-		-		-		(14	)
	Repayment of long-term debt		(1	)	(2	)	(17	)	(19	)
	Dividends paid		(120	)	(123	)	(482	)	(468	)
	Shares issued		-		-		-		1
	Shares repurchased		-		-		-		(559	)
Cash used in financing activities			(1,213	)	(1,057	)	(687	)	(573	)
Effect of exchange rate changes on cash and cash equivalents			(9	)	47		(67	)	80
Increase (decrease) in cash and cash equivalents			101		(238	)	(103	)	(333	)
Cash and cash equivalents - beginning of period			311		753		515		848
Cash and cash equivalents - end of period			412		515		412		515
See accompanying notes.

AGRIUM INC.

Consolidated Statements of Shareholders' Equity

(Unaudited)

									Other comprehensive income (loss)
(millions of U.S. dollars, except per share data)			Millions of common shares		Share capital		Retained earnings		Cash flow hedges		Comprehensive loss of associates and joint ventures		Foreign currency translation		Total		Equity holders of Agrium		Non- controlling interest		Total equity
December 31, 2014			144		1,821		5,502		(27	)	(11	)	(605	)	(643	)	6,680		7		6,687
	Net earnings		-		-		988		-		-		-		-		988		-		988
	Other comprehensive income (loss), net of tax
		Post-employment benefits	-		-		10		-		-		-		-		10		-		10
		Other	-		-		-		(33	)	(6	)	(609	)	(648	)	(648	)	-		(648	)
	Comprehensive income (loss), net of tax		-		-		998		(33	)	(6	)	(609	)	(648	)	350		-		350
	Dividends ($3.405 per share)		-		-		(478	)	-		-		-		-		(478	)	-		(478	)
	Non-controlling interest transactions		-		-		-		-		-		-		-		-		(3	)	(3	)
	Shares repurchased		(6	)	(70	)	(489	)	-		-		-		-		(559	)	-		(559	)
	Share-based payment transactions		-		6		-		-		-		-		-		6		-		6
	Reclassification of cash flow hedges, net of tax		-		-		-		4		-		-		4		4		-		4
December 31, 2015			138		1,757		5,533		(56	)	(17	)	(1,214	)	(1,287	)	6,003		4		6,007
	Net earnings		-		-		592		-		-		-		-		592		4		596
	Other comprehensive income (loss), net of tax
		Post-employment benefits	-		-		(7	)	-		-		-		-		(7	)	-		(7	)
		Other	-		-		-		6		(34	)	59		31		31		-		31
	Comprehensive income (loss), net of tax		-		-		585		6		(34	)	59		31		616		4		620
	Dividends ($3.5 per share)		-		-		(484	)	-		-		-		-		(484	)	-		(484	)
	Non-controlling interest transactions		-		-		-		-		-		-		-		-		(3	)	(3	)
	Share-based payment transactions		-		9		-		-		-		-		-		9		-		9
	Reclassification of cash flow hedges, net of tax		-		-		-		25		-		-		25		25		-		25
December 31, 2016			138		1,766		5,634		(25	)	(51	)	(1,155	)	(1,231	)	6,169		5		6,174
See accompanying notes.

AGRIUM INC.
Summarized Notes to the Consolidated Financial Statements
For the three and twelve months ended December 31, 2016
(millions of U.S. dollars, unless otherwise stated)
(Unaudited)

1. Corporate Management

Corporate information

Agrium Inc. ("Agrium") is incorporated under the laws of Canada with common shares listed under the symbol "AGU" on the New York Stock Exchange (NYSE) and the Toronto Stock Exchange (TSX). Our Corporate head office is located at 13131 Lake Fraser Drive S.E., Calgary, Canada. We conduct our operations globally from our Wholesale head office in Calgary and our Retail head office in Loveland, Colorado, United States. In these financial statements, "we", "us", "our" and "Agrium" mean Agrium Inc., its subsidiaries and joint arrangements.

We categorize our operating segments within the Retail and Wholesale business units as follows:

• Retail: Distributes crop nutrients, crop protection products, seed and merchandise and provides financial and other services directly to growers through a network of farm centers in two geographical segments:
  • North America: including the United States and Canada
  • International: including Australia and South America
• Wholesale: Produces, markets and distributes crop nutrients and industrial products through the following businesses:
  • Nitrogen: Manufacturing in Alberta and Texas
  • Potash: Mining and processing in Saskatchewan
  • Phosphate: Production facilities in Alberta and production and mining facilities in Idaho
  • Wholesale Other: Purchasing and reselling crop nutrient products from other suppliers to customers primarily in Europe; producing blended crop nutrients and Environmentally Smart Nitrogen^® (ESN) polymer-coated nitrogen crop nutrients; and operations of joint ventures and associates

Additional information on our operating segments is included in note 2.

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

2. Operating Segments

Segment information by business unit			Three months ended December 31,
			2016								2015
			Retail		Wholesale		Other (a)		Total		Retail		Wholesale		Other (a)		Total
Sales		- external	1,816		464		-		2,280		1,758		649		-		2,407
		- inter-segment	12		193		(205	)	-		7		239		(246	)	-
Total sales			1,828		657		(205	)	2,280		1,765		888		(246	)	2,407
Cost of product sold			1,205		523		(196	)	1,532		1,166		568		(227	)	1,507
Gross profit			623		134		(9	)	748		599		320		(19	)	900
Gross profit (%)			34		20				33		34		36				37
Expenses
	Selling		476		9		(5	)	480		462		7		(4	)	465
	General and administrative		26		7		32		65		29		12		33		74
	Share-based payments		-		-		33		33		-		-		15		15
	Earnings from associates and joint ventures		(1	)	(34	)	-		(35	)	(2	)	(2	)	(1	)	(5	)
	Other (income) expenses		(12	)	3		52		43		(23	)	16		34		27
Earnings (loss) before finance costs and income taxes			134		149		(121	)	162		133		287		(96	)	324
	Finance costs		-		-		72		72		-		-		73		73
Earnings (loss) before income taxes			134		149		(193	)	90		133		287		(169	)	251
	Depreciation and amortization		68		67		6		141		66		65		4		135
	Finance costs		-		-		72		72		-		-		73		73
EBITDA (b)			202		216		(115	)	303		199		352		(92	)	459

(a)	Includes inter-segment eliminations.
(b)	EBITDA is net earnings (loss) before finance costs, income taxes, depreciation and amortization, and net earnings (loss) from discontinued operations.

Segment information by business unit			Twelve months ended December 31,
			2016								2015
			Retail		Wholesale		Other (a)		Total		Retail		Wholesale		Other (a)		Total
Sales		- external	11,723		1,942		-		13,665		12,168		2,627		-		14,795
		- inter-segment	43		764		(807	)	-		31		975		(1,006	)	-
Total sales			11,766		2,706		(807	)	13,665		12,199		3,602		(1,006	)	14,795
Cost of product sold			8,980		2,134		(844	)	10,270		9,471		2,421		(985	)	10,907
Gross profit			2,786		572		37		3,395		2,728		1,181		(21	)	3,888
Gross profit (%)			24		21				25		22		33				26
Expenses
	Selling		1,899		32		(17	)	1,914		1,902		36		(17	)	1,921
	General and administrative		102		30		110		242		112		39		117		268
	Share-based payments		-		-		55		55		-		-		51		51
	(Earnings) loss from associates and joint ventures		(6	)	(61	)	1		(66	)	(5	)	10		(1	)	4
	Other (income) expenses		(26	)	62		116		152		(60	)	23		65		28
Earnings (loss) before finance costs and income taxes			817		509		(228	)	1,098		779		1,073		(236	)	1,616
	Finance costs		-		-		278		278		-		-		252		252
Earnings (loss) before income taxes			817		509		(506	)	820		779		1,073		(488	)	1,364
	Depreciation and amortization		274		242		16		532		254		211		15		480
	Finance costs		-		-		278		278		-		-		252		252
EBITDA			1,091		751		(212	)	1,630		1,033		1,284		(221	)	2,096

(a)	Includes inter-segment eliminations.

Segment information - Retail			Three months ended December 31,
			2016						2015
			North America		International		Retail (a)		North America		International		Retail
Sales		- external	1,332		484		1,816		1,333		425		1,758
		- inter-segment	12		-		12		7		-		7
Total sales			1,344		484		1,828		1,340		425		1,765
Cost of product sold			860		345		1,205		853		313		1,166
Gross profit			484		139		623		487		112		599
Expenses
	Selling		376		100		476		375		87		462
	General and administrative		18		8		26		22		7		29
	Earnings from associates and joint ventures		-		(1	)	(1	)	(1	)	(1	)	(2	)
	Other income		(5	)	(7	)	(12	)	(17	)	(6	)	(23	)
Earnings before income taxes			95		39		134		108		25		133
	Depreciation and amortization		60		8		68		61		5		66
EBITDA			155		47		202		169		30		199

(a)	Included within the Retail business unit is a separate Financial Services operating segment with total sales of $7-million and EBITDA of $6-million.

Segment information - Retail			Twelve months ended December 31,
			2016						2015
			North America		International		Retail (a)		North America		International		Retail
Sales		- external	9,565		2,158		11,723		10,093		2,075		12,168
		- inter-segment	43		-		43		31		-		31
Total sales			9,608		2,158		11,766		10,124		2,075		12,199
Cost of product sold			7,306		1,674		8,980		7,826		1,645		9,471
Gross profit			2,302		484		2,786		2,298		430		2,728
Expenses
	Selling		1,555		344		1,899		1,571		331		1,902
	General and administrative		72		30		102		79		33		112
	Earnings from associates and joint ventures		(4	)	(2	)	(6	)	(3	)	(2	)	(5	)
	Other expenses (income)		3		(29	)	(26	)	(35	)	(25	)	(60	)
Earnings before income taxes			676		141		817		686		93		779
	Depreciation and amortization		249		25		274		229		25		254
EBITDA			925		166		1,091		915		118		1,033

(a)	Included within the Retail business unit is a separate Financial Services operating segment with total sales of $16-million and EBITDA of $15-million.

Segment information - Wholesale			Three months ended December 31,
			2016										2015
			Nitrogen		Potash		Phosphate		Wholesale  Other (a)		Wholesale		Nitrogen		Potash		Phosphate		Wholesale Other (a)		Wholesale
Sales		- external	218		74		82		90		464		270		137		127		115		649
		- inter-segment	67		31		62		33		193		97		38		72		32		239
Total sales			285		105		144		123		657		367		175		199		147		888
Cost of product sold			200		84		136		103		523		181		112		162		113		568
Gross profit			85		21		8		20		134		186		63		37		34		320
Expenses
	Selling		4		2		1		2		9		3		1		1		2		7
	General and administrative		4		2		1		-		7		5		2		1		4		12
	Earnings from associates and joint ventures		-		-		-		(34	)	(34	)	-		-		-		(2	)	(2	)
	Other expenses (income)		1		4		-		(2	)	3		(12	)	7		1		20		16
Earnings before income taxes			76		13		6		54		149		190		53		34		10		287
	Depreciation and amortization		23		26		15		3		67		18		28		14		5		65
EBITDA			99		39		21		57		216		208		81		48		15		352

(a)	Includes product purchased for resale, ammonium sulfate, ESN and other products.

Segment information - Wholesale			Twelve months ended December 31,
			2016										2015
			Nitrogen		Potash		Phosphate		Wholesale  Other (a)		Wholesale		Nitrogen		Potash		Phosphate		Wholesale Other (a)		Wholesale
Sales		- external	860		280		356		446		1,942		1,129		364		471		663		2,627
		- inter-segment	284		139		211		130		764		401		151		270		153		975
Total sales			1,144		419		567		576		2,706		1,530		515		741		816		3,602
Cost of product sold			757		367		523		487		2,134		801		335		599		686		2,421
Gross profit			387		52		44		89		572		729		180		142		130		1,181
Expenses
	Selling		14		7		3		8		32		15		5		4		12		36
	General and administrative		13		7		3		7		30		15		7		5		12		39
	(Earnings) loss from associates and joint ventures		-		-		-		(61	)	(61	)	-		-		-		10		10
	Other expenses (income)		31		28		7		(4	)	62		-		25		17		(19	)	23
Earnings before income taxes			329		10		31		139		509		699		143		116		115		1,073
	Depreciation and amortization		75		99		55		13		242		72		71		51		17		211
EBITDA			404		109		86		152		751		771		214		167		132		1,284

(a)	Includes product purchased for resale, ammonium sulfate, ESN and other products.

Gross profit by product line		Three months ended December 31,												Twelve months ended December 31,
		2016						2015						2016						2015
		Sales		Cost of product  sold		Gross profit		Sales		Cost of product sold		Gross profit		Sales		Cost of product  sold		Gross profit		Sales		Cost of product sold		Gross profit
Retail
	Crop nutrients	779		632		147		843		689		154		4,310		3,478		832		4,944		4,097		847
	Crop protection products	620		324		296		541		273		268		4,684		3,570		1,114		4,543		3,476		1,067
	Seed	101		58		43		75		21		54		1,462		1,165		297		1,425		1,141		284
	Merchandise	167		140		27		156		129		27		621		518		103		638		539		99
	Services and other (a)	161		51		110		150		54		96		689		249		440		649		218		431
		1,828		1,205		623		1,765		1,166		599		11,766		8,980		2,786		12,199		9,471		2,728
Wholesale
	Nitrogen	285		200		85		367		181		186		1,144		757		387		1,530		801		729
	Potash	105		84		21		175		112		63		419		367		52		515		335		180
	Phosphate	144		136		8		199		162		37		567		523		44		741		599		142
	Product purchased for resale	37		37		-		53		52		1		215		211		4		398		387		11
	Ammonium sulfate, ESN and other	86		66		20		94		61		33		361		276		85		418		299		119
		657		523		134		888		568		320		2,706		2,134		572		3,602		2,421		1,181
Other inter-segment eliminations		(205	)	(196	)	(9	)	(246	)	(227	)	(19	)	(807	)	(844	)	37		(1,006	)	(985	)	(21	)
Total		2,280		1,532		748		2,407		1,507		900		13,665		10,270		3,395		14,795		10,907		3,888
Wholesale share of joint ventures
	Nitrogen	65		53		12		71		59		12		196		164		32		194		178		16
	Product purchased for resale	-		-		-		-		-		-		-		-		-		38		37		1
		65		53		12		71		59		12		196		164		32		232		215		17
Total Wholesale including proportionate share in joint ventures		722		576		146		959		627		332		2,902		2,298		604		3,834		2,636		1,198

(a)	Includes financial services products.

Selected volumes and per tonne information				Three months ended December 31,
				2016								2015
				Sales  tonnes (000's)		Selling  price ($/tonne)		Cost of  product  sold ($/tonne)		Margin ($/tonne)		Sales tonnes (000's)		Selling price ($/tonne)		Cost of product sold ($/tonne)		Margin ($/tonne)
Retail
	Crop nutrients
		North America		1,593		395		317		78		1,375		513		416		97
		International		395		381		321		60		327		424		364		60
	Total crop nutrients			1,988		392		318		74		1,702		496		406		90
Wholesale
	Nitrogen
		North America
			Ammonia	334		371						374		499
			Urea	439		274						386		356
			Other	181		222						152		283
	Total nitrogen			954		298		209		89		912		403		199		204
	Potash
		North America		286		211						503		281
		International		304		148						153		220
	Total potash			590		179		143		36		656		267		171		96
	Phosphate			303		475		449		26		325		610		495		115
	Product purchased for resale			149		243		248		(5	)	148		362		356		6
	Ammonium sulfate			99		240		130		110		96		293		125		168
	ESN and other			178								155
Total Wholesale				2,273		289		230		59		2,292		387		248		139
Wholesale share of joint ventures
	Nitrogen			222		293		235		58		198		359		295		64
	Product purchased for resale			-		-		-		-		-		-		-		-
				222		293		235		58		198		359		295		64
Total Wholesale including proportionate share in joint ventures				2,495		289		230		59		2,490		385		251		134

Selected volumes and per tonne information				Twelve months ended December 31,
				2016								2015
				Sales  tonnes (000's)		Selling  price ($/tonne)		Cost of  product  sold ($/tonne)		Margin ($/tonne)		Sales  tonnes (000's)		Selling  price ($/tonne)		Cost of  product  sold ($/tonne)		Margin ($/tonne)
Retail
	Crop nutrients
		North America		8,003		446		351		95		7,731		537		436		101
		International		1,956		379		341		38		1,843		431		393		38
	Total crop nutrients			9,959		433		349		84		9,574		516		427		89
Wholesale
	Nitrogen
		North America
			Ammonia	1,165		402						1,209		530
			Urea	1,620		294						1,583		395
			Other	817		244						864		305
	Total nitrogen			3,602		318		211		107		3,656		418		219		199
	Potash
		North America		1,187		217						1,133		330
		International		1,052		154						601		235
	Total potash			2,239		187		164		23		1,734		297		193		104
	Phosphate			1,106		512		472		40		1,166		635		513		122
	Product purchased for resale			745		288		283		5		1,089		366		356		10
	Ammonium sulfate			341		268		122		146		336		330		140		190
	ESN and other			694								656
Total Wholesale				8,727		310		245		65		8,637		417		280		137
Wholesale share of joint ventures
	Nitrogen			669		293		245		48		506		384		352		32
	Product purchased for resale			-		-		-		-		117		321		309		12
				669		293		245		48		623		372		343		29
Total Wholesale including proportionate share in joint ventures				9,396		309		245		64		9,260		414		285		129