Toronto-Fertilizer sales volumes were off at Sherritt International Corp. for the second quarter and first half ending June 30, 2008. Fertilizer operating earnings were C$1.8 million on revenues of $33.5 million (83,326 mt sales volumes), versus the year-ago $1.7 million and $34.4 million (110,338 mt), respectively. Six-month earnings were double the year-ago level at $1.6 million on sales of $42.0 million (105,705 mt) compared to the year-ago $800,000 and $40.1 million (127,473 mt). Sherritt said while there was strong demand in the second quarter, sales were limited by inventory levels that were lower than normal because of strong sales in fourth quarter 2007. Higher fertilizer revenue for the first half reflects stronger prices partially offset by lower sales volumes. Higher fertilizer prices were partially offset by higher energy costs. Sherritt-wide, second quarter net earnings were off to $80.3 million ($.28 per diluted share) on sales of $441.2 million, versus the year-ago $89 million ($.38 per share) and $314.2 million, respectively. Sherritt said record results from its oil and gas business were offset by lower realized nickel prices, which were 47 percent lower in the second quarter, as well as lower finished metals production. Six-month net earnings were $169.3 million ($.65 per share) on sales of $755.4 million, versus the year-ago $221.5 million ($1.24 per share) and $715.5 million. Sherritt noted the huge surge in raw material prices for its metals unit. Second-quarter sulfur prices were $383.71/mt, up from the year-ago $95.61/mt. Sulfuric acid prices went to $224.73/mt from $110.05. Natural gas was $9.63/gigagoule, up from $6.76/gigaboule.
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