US CF Industries Q2 net income drops on merger costs

05 August 2010 22:55  [Source: ICIS news]

HOUSTON (ICIS)--US fertilizer maker CF Industries’ second-quarter net income fell 51% to $105m (€80m) from $213m in the year-earlier period with the drag on income attributed in part to costs associated with its acquisition of Terra Industries, the company said on Thursday.

Second-quarter results included $113.7m of business combination and integration costs resulting from the Terra takeover earlier this year.

CF reported net sales in the second quarter of $1.3bn, up 32% from $991m in the same period last year, due to the inclusion of $526m in Terra net sales, higher average phosphate selling prices, and higher nitrogen volumes.

“Nitrogen volumes in Q2 benefited from conditions and our operating decisions, in addition to the increased scale of the new CF Industries,” said chairman and chief executive Stephen Wilson.

CF said sales volumes of diammonium phosphate (DAP) and monoammonium phosphate (MAP) shipments were 4% higher than a year earlier.

“Weather permitting, the fall fertilizer season is expected to be strong due to an early harvest, anticipation of another large corn planting in 2011, and increasing application rates,” Wilson said.

($1 = €0.76)

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