CF

CF Industries profit more than halves as fertilizer prices tumble

Credit: REUTERS/LEE SMITH

Nov 1 (Reuters) - Fertilizer maker CF Industries CF.N reported a 63% drop in third-quarter profit on Wednesday, as lower fertilizer prices hit its earnings.

CF's shares fell 1.4% in extended trade.

Nitrogen fertilizer prices have fallen compared to last year as supplies have stabilized, denting margins for companies like CF Industries.

Rival Yara YAR.OL had reported a bigger-than-expected drop in third-quarter earnings as falling prices squeezed margins.

CF reported earnings of $164 million, or 85 cents per share, for the three months ended Sept. 30, down from $438 million, or $2.18 per share, a year-ago.

The company's average selling price per product ton in its ammonia segment reduced to $308 from $826 last year.

Gross margin fell nearly 59% to $377 million from a year ago.

"Management expects demand through the end of 2023 and into 2024 to remain strong, led by India and Brazil," the company said in a statement.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shailesh Kuber)

((Sourasis.Bose@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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