CF Industries 3Q Profit Falls As Sales Decline

DEERFIELD, Ill. (AP) — CF Industries Holdings Inc., which is embroiled in a hostile takeover bid for rival Terra Industries Inc., said Monday its third-quarter profit dropped 18 percent as sales slid by more than half as a result of lower prices.

The fertilizer maker posted a profit after paying preferred dividends of $38.5 million, or 78 cents per share, down from $47.1 million, or 82 cents per share, for the same quarter last year.

Sales dropped 58 percent to $430.1 million from $1.02 billion, as volumes remained flat but prices of the company's products fell amid weaker demand linked to the recession.

The results fell short of Wall Street predictions. Analysts polled by Thomson Reuters expected a profit of $1.02 per share on $438 million in sales, on average.

"Domestic distributors and retailers remain hesitant to carry inventory because of the write-downs they experienced as prices fell last winter," said Chairman and CEO Stephen R. Wilson, in a statement.

Nitrogen segment volume fell by just 3 percent as lower domestic sales were largely offset by exports. Total phosphate segment volume rose 9 percent, partially as a result of the sale of purchased potash. The company noted that the third quarter is typically the lowest-volume quarter of the year for U.S. fertilizer demand.