Fertilizer maker CF Industries posts 93.6 pct plunge in profit

By Times Of India on 05 Aug 2017 | read
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Aug 2 (Reuters) - U.S. fertilizer producer CF Industries Holdings Inc reported a 93.6 percent fall in quarterly profit on Wednesday and said it expects nitrogen pricing to be challenged through 2017 and into 2018.

Fertilizer prices have faced pressure from soft crop prices and expanding U.S. nitrogen fertilizer capacity.

The average selling price for ammonia fell nearly 18 percent to $338 per ton in the second quarter, while the price of UAN (urea ammonium nitrate) dropped about 13 percent to $175 per ton.

The Deerfield, Illinois-based company's net earnings fell to $3 million, or 1 cent per share, in the quarter ended June 30, from $47 million, or 20 cents per share, a year earlier.

The company recorded a derivative loss of $18 million in the latest reported quarter.

Net sales fell marginally to $1.12 billion.

Industry peer Mosaic Co on Tuesday forecast slower phosphate sales and weaker prices for the third quarter.

Shares of CF were marginally down at $28.55 in after-hours trading on Wednesday. (Reporting by John Benny in Bengaluru; Editing by Maju Samuel)

 

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