This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CF Industries Holdings, Inc. Reports Record Third Quarter Earnings

EBITDA was $729.1 million in the third quarter of 2012, an increase of 14 percent compared to $640.8 million in the third quarter of 2011.

Net sales in the third quarter were $1.36 billion, down three percent from $1.40 billion in the same period last year primarily due to lower total nitrogen volume and phosphate product prices, which were offset partially by higher phosphate volume. Total sales volume decreased two percent to 3.5 million tons in the third quarter of 2012 largely due to lower urea sales compared to the prior year period. Lower phosphate product prices resulted from lower global demand relative to the same period last year, while the phosphate volume increase resulted from strong demand in North America.

“As dealers moved to address tight inventories, we achieved exceptional results during what is the normal seasonal low quarter of the year,” said Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “We generated a 52 percent gross margin, leading to record third quarter EBITDA, net earnings and earnings per share. We also built a strong order book for the fourth quarter, indicative of robust nitrogen demand in anticipation of another year of high planted acres in 2013.”

Fertilizer markets were characterized by good demand in North America during the quarter, as purchasing activity for summer fill programs was brisk and fertilizer dealers and distributors sought to replenish inventories in anticipation of a high level of fall field work to support large expected crop plantings in 2013. However, purchasing activity was less than expected during the quarter in international markets, in particular in Central and South America.

Low water levels on the Mississippi River created logistical challenges for CF Industries and other suppliers that rely on the inland waterway system. However, the company was able to deal effectively with these challenges thanks to its ability to utilize various transportation modes including pipeline, rail and truck, and, as a result, was able to serve customers seamlessly.

2 of 10

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs