Leading fertilizer company
CF Industries Holdings Inc.
) first-quarter 2013 adjusted earnings (excluding one-time items)
of $6.03 per share were below the year-ago earnings of $6.06 but
exceeded the Zacks Consensus Estimate of $6.00.
After including one-time items, the company earned $6.47 a
share in the quarter, up 16.8% from $5.54 in the year-ago
Sales were down 12.5% to $1.34 billion in the quarter from
$1.53 billion in the prior-year quarter. It also missed the Zacks
Consensus Estimate of $1.45 billion. The decrease reflected lower
sales volumes in both the Nitrogen and Phosphate divisions and
lower average prices for urea and phosphates. Sales also declined
due to the impact of a change in the selling price calculation
method used for products sold by Canadian Fertilizers Limited
Costs and Margins
Cost of sales stood at $661.4 million in the reported quarter
compared with $815.8 million in the year-earlier quarter. Gross
profit decreased 5.2% year over year to $675.1 million in the
quarter. Selling, general and administrative expenses jumped
31.1% to $44.3 million from $33.8 million in the year-ago
quarter. The company reported an operating income of $627.8
million, down 6.5% from $671.2 million in the prior-year
Sales declined 14% year over year to $1.1 billion in the first
quarter. Gross margin declined 2.2% to $647.6 million. Total
sales volumes of ammonia, granular urea, UAN and ammonium nitrate
were down 6% year over year to 3 million tons. Cost of sales
declined in the quarter due to lower sales volumes. Realized
natural gas price in the quarter increased to $3.57 per MMBtu
from $3.48 a year ago.
Sales fell 7% year over year to $238.9 million. Gross margin
declined 45% to $27.5 million due to lower revenues and higher
phosphate production costs. Volumes sold in the quarter were
495,000 tons, down from 516,000 tons a year ago, attributable to
lower export sales associated with a seasonally slow
international phosphate market. Average selling prices of
diammonium phosphate (DAP) and monoammonium phosphate (MAP) were
$477 and $511, respectively, down 3.4% and up 1% year over year,
Cash and cash equivalents totaled to $2.21 billion as of Mar
31, 2013, compared with $1.71 billion as of Mar 31, 2012.
Long-term debt stood at $1.6 billion as of Mar 31, 2013, compared
with $1.61 billion as of Mar 31, 2012.
CF Industries remains positive regarding the second-quarter
2013 based on higher prices for grains which will provide farmers
with incentives to plant corn and apply both nitrogen and
phosphate. Low domestic and global grain stocks are anticipated
to boost plantings for the next several years.
The company expects capital expenditures for its announced
capacity expansion projects at Donaldsonville, La., and Port
Neal, Iowa, to be in the range of $600-$800 million in 2013.
Capital expenditures for the company's existing facilities are
anticipated to be about $450 million.
Another fertilizer company
Potash Corp of Sakatchewan Inc.
) released its first-quarter 2013 results last month. The
company's earnings of 63 cents per share for the quarter exceeded
the Zacks Consensus Estimate of 61 cents, reflecting a positive
surprise of around 3.3%. The company posted a profit of $556
million in the reported quarter, up roughly 13% from $491 million
(56 cents a share) recorded a year ago.
Sales came in at $2,100 million in the quarter, up 20.3% from
$1,746 million registered a year ago, and ahead of the Zacks
Consensus Estimate of $1,923 million. The year-over-year increase
was due to improved global potash demand and record first-quarter
Another leading fertilizer company
) is slated to release its first- quarter 2013 results on May
CF Industries currently retains a short-term Zacks Rank #3
Another fertilizer company with a favorable Zacks Rank is
), which carries a Zacks Rank #2 (Buy).
AGRIUM INC (AGU): Free Stock Analysis Report
CF INDUS HLDGS (CF): Free Stock Analysis
MONSANTO CO-NEW (MON): Free Stock Analysis
POTASH SASK (POT): Free Stock Analysis Report
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