UAP annual net income up 144 percent

Greeley, Colo.-UAP Holdings Inc. reported a 46.5 percent increase in fertilizer sales for the year ending Feb. 24, 2008. Sales moved up to $1.04 billion from the prior year’s $707.7 million. Company-wide, sales were up 19.6 percent, to $3.41 billion from the prior year $2.85 billion. UAP net income was up 144 percent, to $81.5 million ($1.53 per diluted share), compared to the year-ago $33.4 million ($.64 per share). UAP identified both fertilizer and seed as its potential growth areas. It said it would leverage its growth in fertilizer by nurturing relationships with fertilizer suppliers and by making investments in storage and blending facilities. Chemicals, while increasing in revenues in fiscal 2007, contributed a lower share of sales ?Çô 53 percent, down from 58 percent. Fertilizer’s percentage moved up to 30 percent from 25 percent, while seed remained at 14 percent. During fiscal 2007, UAP said it made four acquisitions and paid $8.7 million. It suspended acquisition activity once the announcement was made it was merging with Agrium Inc. UAP capital expenditures in 2007 were $24.4 million, up slightly from 2006. It said the largest projects completed were a fertilizer terminal in Plymouth, Wash., and a fertilizer terminal and warehouse consolidation project in Attica, Ohio.

UAP Sales $/millions

Total UAN Regional Sales – Year ending Feb. 25, 2008

Source: UAP