CF Industries Profit Drops 73%

Date:02-17-2010

CF Industries Holdings  Inc.s fourth-quarter earnings declined 73% as revenue at the fertilizer maker plunged on lower prices.

Chairman and Chief Executive Stephen R. Wilson said the quarter "was marked by a late harvest and a poor fall ammonia application season." By the end of the quarter though, he said "stronger buying interest had returned and prices had risen, reflecting the reality that the U.S. market needs to attract enough nitrogen fertilizer from world markets to meet strong expected demand in the spring of 2010."

CF reported a profit of $51.4 million, or $1.04 a share, from $190.1 million, or $3.59, a year earlier. The results included net charges of 40 cents and 29 cents a share, respectively. Revenue dropped 53% to $506.7 million.

Gross margin fell to 24.9% from 33.6% amid the sales woes.

Sales in the companys nitrogen segment—ts biggest by revenue—fell 50% but volume was flat. Phosphate volume, meanwhile, jumped 36% on strong exports.