26 October 2009 22:13 [Source: ICIS news]
HOUSTON (ICIS news)--US fertilizer maker CF Industries’ third-quarter net earnings fell 18% to $38.5m (€25.8m), from $47.1m in the same period last year, primarily due to business development costs, the Illinois-based company said on Monday.
Net third-quarter sales were $430.1m, down 58% from the same quarter in 2008, resulting from reduced prices for all fertilizer products.
Despite mixed market conditions, nitrogen fertilizer volume declined by 3% as lower domestic sales were mostly offset by exports, Illinois-based CF said.
Total phosphate segment sales volume rose 9%.
“Domestic distributors and retailers remain hesitant to carry inventory because of write-downs they experienced as prices fell last winter,” CF president and chief executive Stephen Wilson said.
Nitrogen gross margins increased $172.4m, while phosphate segment gross margins declined by $169.3m from the level reached during last year’s pricing peak, ?xml:namespace>
The results also include $18.7m of costs associated with CF’s development of a nitrogen plant in
Over the same period, the company’s realised cost of natural gas fell by 31%.
CF’s nitrogen complexes operated at 89% of capacity during the third quarter and entered the fourth quarter operating at similar rates.
($1 = €0.67)
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