CF Industries Inc Improves Profitability in Q2 2012

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01 Oct 2012 13:06 Helen Clark

CHEMMONITOR.COM – Second quarter of 2012 brought CF Industries strong results: against the Q2 2011 revenue declined by 3.7% to USD 1735.6 M, gross profit added 20.3% and amounted USD 1043.3 M, operating income increased by 19% to USD 1005 M, net income grew by 24.4% and reached USD 606.3 M. Robust demand for crop nutrients drove company’s performance and allowed the most successful half-year records ever. Nitrogen enjoyed high demand caused by low imports, low phosphate prices promoted heavy exports.

Comparing to 3.8 million tons in Q2 2011, in the current year CF Industries marketed 3.5 million tons of granular urea, ammonia, ammonium nitrate (AN), urea ammonium nitrate solutions (UAN) and other nitrogen products. Among them were 694,000 tons of granular urea, 793,000 tons of ammonia, 1.63 million tons of UAN and 249,000 tons of AN. Nitrogen Segment revenue for the quarter comprised USD 1.5 B. Phosphate Segment sold 93,000 tons of phosphate products which turned USD 231.5 M in revenues.

Several worldwide trends are about to bring benefit to company’s future performance. A shift toward higher protein diets, growing populations, renewable fuels industry using massive amounts of crops are likely to keep the demand for plant nutrients high. Ammonia market close forecast stipulates high demand in the second half of 2012 due to low inventories. Additionally, a number of off-shore producers experience outages, and this will support ammonia prices during the autumn season. Urea demand is also expected to be strong assuming US massive plantings in 2013. UAN is a new product for CF Industries, and it has received good customer responses. Phosphates market will remain export-oriented due to pricing pressure and demand from Latin America and India.

Founded in 1946 and headquartered in Deerfield, Illinois (USA), CF Industries is one of the world’s largest nitrogen and phosphate products manufacturers. The company operates 7 nitrogen facilities, 1 phosphate complex and about 40 distribution terminals across the US. CF Industries has two trading partners – KEYTRADE AG in Switzerland and GrowHow UK Ltd in the UK – which help the company distribute its products across the globe. CF Industries trades on New York Stock Exchange under the ticker CF.

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