Sioux City-Terra Industries Inc. reported net income available to common shareholders of $69.4 million ($.66 per diluted share) on revenues of $693.8 million for the second quarter ending June 30, 2007, versus the year-ago $5.0 million ($.05 per share) and $523.5 million, respectively. Second-quarter operating income was $128.8 million, up from the year-ago $26.2 million. The improved results, spurred by increased corn acres, were due to higher sales volumes and selling prices. Ammonia, UAN, and AN sales volumes increased 3, 23, and 21 percent, while prices increased 7, 36, and 13 percent, respectively. These improvements helped offset a $7.7 million equity earnings decline at the Trinidad ammonia plant, which reported an extended turnaround and plant outage in the quarter; it came back up in May. Terra also noted a period of relative calm in natural gas prices, with those in the United Kingdom off 48 percent for the quarter. First-half net income was $75.3 million ($.73 per share) on sales of $1.2 billion, compared to the year-ago net loss of $20.3 million ($.22 per share) and revenues of $922.4 million. Terra sees a positive outlook for the rest of 2007 and beyond. “We’re experiencing good demand for fall fertilizer fill, and nitrogen prices remain seasonally firm,” said Terra President and CEO Michael Bennett. “Corn futures continue at levels that should encourage strong plantings next spring.”
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Terra Nitrogen earnings way up
Sioux City-Terra Nitrogen Co. LP (TNCLP) reported net income of $57.1 million ($3.02 per lp unit) on revenues of $177.4 million for the second quarter ending June 30, 2007, compared to the year-ago net income of $17.4 million ($.92 per lp) on sales of $119.2 million. First-half net income was $92.4 million ($4.90 per lp) on revenues of $305.6 million, versus the year-ago $14.9 million ($.79 per lp) and $214.6 million, respectively. TNCLP announced a cash distribution for the second quarter of $3.00 per lp payable Aug. 27, 2007, to holders of record as of Aug. 9, 2007.
Agriliance 3Q net income up 81 percent
Inver Grove Heights, Minn.-Agriliance LLC reported net income of $108.0 million on sales of $1.83 billion for the third quarter ending May 31, 2007, versus the year-ago $59.6 million and $1.59 billion, respectively. Nine-month net income was $49.2 million on sales of $3 billion, up from the year-ago $27.0 million and $2.78 billion, respectively. CHS Inc., Agriliance co-owner, reported the earnings in SEC filings and said Agriliance saw improved crop nutrient margins on both a wholesale and retail basis during the third quarter, as well as an 11 percent net increase in nutrient volumes. CHS said its investment in a Canadian agronomy joint venture contributed reduced earnings of $400,000.
Fert boosts Bunge; farmers accelerate buying
White Plains, NY-Higher fertilizer volumes and margins helped boost Bunge Ltd.’s performance in the second quarter ending June 30, 2007. The company said the fertilizer results were almost entirely driven by product sales for soybean plantings, which are historically purchased in the second half. Farmers accelerated purchases due to favorable commodity prices and concerns over higher input costs. As a result, fertilizer volumes were up 63 percent, to 3.0 million mt from the year-ago 1.87 million. First-half volumes were 5.5 million, up from 3.59 million mt. Second-quarter fertilizer operating profit was up 788 percent, to $142 million on sales of $795.0 million, compared to the year-ago $16 million and $381 million, respectively. Six-month operating income was $207 million on sales of $1.4 billion, versus the year-ago $47 million and $801 million. Bunge-wide, second-quarter net earnings were $168 million ($1.30 per diluted share) on net sales of $9.9 billion, compared to the year-ago $30 million ($.25 per share) and $6 billion, respectively. Six-month net income was $182 million ($1.35 per share) on sales of $18.1 billion, versus the year-ago $88 million ($.73 per share) and $11.6 billion, respectively.
PotashCorp reports $130 M Aurora expansion
Saskatoon-Potash Corp. of Saskatchewan Inc. said July 26 that in the second quarter it signed a contract to build three 7,500 st silicon tetrafluoride (STF) plants at its Aurora, NC, phosphate facility. This follows the completed construction and commissioning of one 7,500 st plant in the first half. The cost of all four plants is approximately $130 million. STF is used in manufacturing silicon wafers for the growing solar energy market. PotashCorp says it is a stable, high-return industrial product made from hydrofluorosilicic acid recovered from the evaporators when P205 is produced.
UK okays Terra/Kemira deal
Sioux City-Terra Industries Inc. said July 26 that the United Kingdom Competition Commission has conditionally approved advancement of the planned combination of Terra and Kemira GrowHow’s UK fertilizer and associated process chemicals businesses. Terra hopes to consummate the deal in the third quarter.
Potash miners take refuge from smoke
Saskatoon-Forty-seven miners were sealed off in safe rooms for five hours early on July 20 in Potash Corp. of Saskatchewan Inc.’s Cory mine near here when smoke from a piece of contractor equipment triggered a security alarm. “They were down there playing cards for quite awhile,” PotashCorp spokeswoman Rhonda Speiss told Green Markets. She said there was never a fire and the alarm was sounded as a precautionary procedure after the contractor notified security. A crew was immediately dispatched underground to investigate. Speiss reported that the incident produced a large volume of black smoke when the oil seal on a bobcat turbocharger failed, and security signaled everyone underground to take refuge in a safe room until the security crew gave the “all clear.” Press reports said the miners were sealed off in four separate underground safe rooms, which contain enough food and water to last for days. The company will conduct a formal investigation along with its occupational health and safety committee to determine what happened and how such occurrences can be prevented in the future. The Cory mine employs about 240.
Losses limited in Simplot fire in Idaho
Rupert, Idaho-A fire in the sulfur bin at J.R. Simplot’s Mini-Cassia Grower Solutions plant July 20 is still under investigation but caused only limited damage, according to company officials. Just getting to it was another matter. Rupert Fire Chief Larry Pool told Green Markets that aerial equipment was brought in and a hole cut in the roof to reach the flames in the sulfur bin and pump in high expansion foam. Fire crews had to wear self-contained breathing apparatus because of the toxic fumes and rotate in teams every 10 or 15 minutes because of the 100-degree heat. The local press reported that a 1-mile area around the scene was evacuated. Pool said he thought the problem was possibly an overheated bearing in a conveyor, but that is still to be determined. Simplot spokesman Rick Phillips said the investigation is still ongoing, but initial findings show limited damage. “We estimate less than 10 tons of sulfur damaged,” he reported, “(plus) the 4 X 8 foot hole in the roof made by the fire department to spray foam on the sulfur.”
Lowe’s finds bleach and fertilizer don’t mix
Slidell, Okla.-Emergency crews evacuated a Lowe’s home improvement store here July 19 because of fumes and smoke caused by liquid bleach spilling on a pallet of fertilizer during an unloading mishap. Ten individuals were treated by ambulance personnel for difficulty breathing, burning sensation of the skin, and watery eyes, but no one was hospitalized. A police spokesman reported that employees were using a forklift to unload the fertilizer and bleach on the same truck when one of the cases of bleach fell off the pallet and started leaking on the fertilizer. Two of the workers tried to use kitty litter to control the fumes while the manager was notified and 911 was called. The smoking pallet of fertilizer was moved outside the store before police and hazmat personnel arrived on the scene and had the store evacuated. Slidell Police Capt. Kevin Folz said the fire department had the store neutralized and ventilated after about 40 minutes, at which point store employees were allowed back in. Fire Chief Larry Hess told reporters that moving the fertilizer outside the store was the best thing to do. He said quick action by the workers, along with rescue personnel and police, kept it from becoming a serious incident.
Milorganite producer finds PCBs in fertilizer
Milwaukee, Wisc.-Milorganite producers with Milwaukee Metropolitan Sewerage District have a problem that can be measured in the thousands of tons. MMSD officials told Green Markets that biosolids from the two Milorganite producing plants are being held under quarantine while a search is underway for the source of polychlorinated biphenyls (PCBs) discovered in at least one of the plants. PCBs were reportedly detected in some of the biosolids being stockpiled. “But it’s not Milorganite,” one official insisted. He said it doesn’t meet specifications and is usually provided as fertilizer to agriculture or for other land applications. Separately, MMSD, along with state environmental and EPA investigators, is trying to determine the extent of PCBs in 11 tons provided for use as fertilizer in Milwaukee area parks. But spokesman Bill Graffin didn’t think the PCB problems will affect Milorganite production. “We’re confident that no contaminated Milorganite has been allowed out of our plant,” he reported. “There are no problems now, but it depends on how much we have to quarantine. We’re continuing to put it on the pile and at this point there’s no clear numbers available. But it will run in the thousands of tons.” Graffin said everything depends on tracking the source of the PCBs. He said PCBs were confirmed by the State Dept. of Natural Resources after a substance was found by workers in a Milwaukee sewer. Meanwhile, health officials have fenced the park areas in question and posted health alert signs where the 11 tons were applied after being donated by MMSD because they were low in nitrogen. The local press reported that EPA has collected soil samples from recreational areas in the parks where the material was applied, and another area used as a soccer field was closed and fenced in to prevent public exposure. The tests are expected to determine how many more samples will be needed to decide if there is a public health risk.