CF Industries Holdings Inc. reported a 27 percent drop in fourth-quarter net income attributable to the common shareholders of $238.3 million ($4.82 per diluted share) on sales of $1.22 billion down from the year-ago $325.8 million ($5.71 per share) and $1.33 billion, respectively.
And despite record ammonia sales for the year ending Dec. 31, 2014, net earnings were off 5 percent to $1.39 billion ($27.08 per share) on sales of $4.74 billion compared to 2013’s $1.46 billion ($24.74 per share) and $5.47 billion, respectively. 2014 also included $462.8 million for an after-tax gain on the sale of the Phosphate segment to The Mosaic Co.
CF also reported that cost estimates for its major expansion at Donaldsonville, La., and Port, Neal, Iowa, are up just under 10 percent from $3.8 billion to $4.2 billion. The increase is primarily associated with Port Neal and reflects updated construction estimates based on having received finalized engineering drawings, specific quantities of material and labor hours, and higher labor costs.
CF said the projects, which will boost overall nitrogen capacity by 25 percent, remain on schedule, with Donaldsonville urea startup expected in third-quarter 2015, UAN in fourth-quarter 2015 and ammonia in early 2016.
Port Neal ammonia startup is expect in mid-2016 and urea in third-quarter 2016.
CF is upbeat about the spring season, expecting some 90 million acres of corn to be planted in the U.S. It also expects a big spring application season due to a shortened fall ammonia application season. It said it is pleased with its ammonia order book and that there has been strong customer interests for urea for delivery in April.