Fertilizantes Heringer, Viana, Brazil, which is in the midst of bankruptcy reorganization, reported that its current capacity for seven blending plants is now 2.9 million mt/y, down from the 19 plants and 6.5 million mt/y of capacity it started with in 2018. The company closed nine plants earlier this year and three in late 2018 (GM Feb. 8, p. 1; Dec. 14, 2018).
Plants identified in operation include those in Candeias, Viana, Manhuacu, Iguatama, Catalao, Ourinhos, and Paulinia. The company is reported to be eyeing the sale of seven of its idled plants (GM April 12, p. 27), though the particular ones have not been identified. Idled locations include Rondonopolis, Dourados, Tres Coracoes, Uberaba, Rio Verde, Porto Alegre, Rio Grande, Paranagua, Rosario do Catete, Patos de Minas, Sao Joao do Manhuacu, and Bebedouro. Rondonopolis was a leased, not owned, location.
Citing a lack of financing for high-priced raw materials, Heringer reported a 68.6 percent drop in fourth-quarter 2018 fertilizer sales volumes to 390,216 mt, down from the year-ago 1.25 million mt. Both specialty and traditional tons were down, though specialty a bit more, down 70.9 percent to 168,000 mt from the year-ago 577,000 mt. Traditional tons were off 66.9 percent, to 222,000 mt from 672,000 mt. The company noted that specialty volumes accounted for 43 percent of sales for the quarter, versus 46 percent for the year-ago period.
Heringer reported a fourth-quarter net loss of R$338.1 million on revenues of R$576.2 million, versus a year-ago loss of R$23.2 million on revenues of R$1.49 billion. EBITDA was a loss of R$34.3 million, compared to the year-ago positive R$71.2 million.
Full-year volumes were down 32.4 percent, to 2.85 million mt from 2017’s 4.22 million mt. Specialty volumes were off 34.6 percent to 1.28 million mt, down from 1.96 million mt, while traditional were off 30.5 percent, to 1.57 million mt from 2.26 million mt. For the year, specialty represented 45 percent of sales, versus 46 percent in 2017.
Heringer reported a full-year net loss of R$779.6 million on revenues of R$3.69 billion, compared to 2017’s loss of R$125.6 million on revenues of R$4.79 billion. EBITDA was a negative R$150.4 million, compared to a positive R$91.9 million.
Heringer stressed that while specialty volumes may be down a little more than traditional, their margins have improved, working their way up from 5.4 percent in 2016 to 10.4 percent in 2018. The company also reported that in late 2018 it launched a new foliar treatment product, FH Attivus, which uses an exclusive formulation composed of nutrients combined with the Biocomplex technology, which it said promotes growth and development on a balanced basis.
Heringer put Brazil fertilizer consumption at 35.5 million mt in 2018, and expects a 3 percent in 2019 to 36.6 million mt.
The company listed total liabilities as R$2.45 billion as of Dec. 31, 2018.