Maumee, Ohio—The Andersons Inc. announced secondquarter net income attributable to the company of $29.2 million ($1.56 per diluted share) on revenues of $1.3 billion, compared with $45.2 million ($2.42 per diluted share) on similar revenues during last year’s second quarter. During the first six months of 2012, the company earned $47.6 million ($2.54 per diluted share) on revenues of $2.5 billion, compared with $62.5 million ($3.34 per diluted share) on revenues of $2.3 billion during the first half of 2011. The Plant Nutrient Group saw increases in both income and revenues from last year, which it attributed to increased volumes. Margins for the segment were down slightly yearoveryear, but still historically strong. Operating income for the group was $28 million on revenues of $309 million for the second quarter, compared with $24.1 million and $260 million, respectively, in last year’s second quarter. The group’s first half 2012 operating income was $33.8 million on $484 million of revenues, compared with $29.2 million and $383 million, respectively, during the first six months of 2011. The Ethanol Group had an operating loss of $2.1 million for the second quarter and $2.0 million for the first six months, which the company attributed to a decrease in earnings from its ethanol investment affiliates, whose income was significantly impacted by lower ethanol margins resulting from increased corn costs and lower ethanol demand. “We had a good quarter, although our expectations for the remainder of the year have been tempered by the drought conditions currently being experienced, which will certainly impact our grain and ethanol businesses,” CEO Mike Anderson said.
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Bunge fertilizer volumes up, margins off
White Plains, N.Y. — While Bunge Ltd. fertilizer volumes were up for the second quarter ending June 30, 2012, to 1.42 million mt from the year-ago 1.38 million mt, margins continued to be affected by high-cost inventories from earlier in the year. The company said conditions improved throughout the quarter as it worked through those inventories. Fertilizer segment income before taxes was a loss of $1 million on net sales of $679 million, compared to the year-ago loss of $5 million on sales of $753 million. “In fertilizer, farm economics are strong and South America is entering its high volume period, with approximately 60 percent of the expected volumes to be sold between July and December,” said Drew Burke, Bunge CFO. Six-month volumes were 2.53 million mt, up from 2.37 million mt. Fertilizer losses were $75 million on sales of $1.28 billion, compared to the year-ago loss of $6 million on sales of $1.27 billion. Company-wide, second-quarter income attributable to Bunge was $274 million ($1.78 per diluted share) on sales of $15.1 billion, down from the year-ago $316 million ($2.02 per share) on sales of $14.5 billion. Six-month income was $366 million ($2.37 per share) on sales of $28.5 billion, down from the year-ago $548 million ($3.51 per share) on sales of $26.7 billion.
K+S results up significantly
Kassel, Germany — K+S Group reported that second-quarter revenues and earnings are significantly above the corresponding previous year’s figures, as well as current consensus expectations. This is due to strong overseas business and a good early stock-up in Europe in the Potash/Magnesium segment. Revenues of the K+S Group reached €996.5 million (Q2/11: €821.7 million), and operating earnings EBIT I reached €219.8 million (Q2/11: €181.9 million). K+S will release complete earnings results Aug. 14.
Florida counties criticize proposed phosphate EIS
Sarasota — Officials from Sarasota, Charlotte, Manatee, and Lee counties filed comments with the Army Corps of Engineers’ proposed area-wide environmental impact statement (EIS) on the cumulative effects of mining in Southwest Florida, saying it should be revised. They said the EIS did not take into account seasonal rain patterns when it determined proposed phosphate mining would not harm area water supplies. In addition, they said the report should have included other possible mines, which total 210,000 acres, and not just the 55,000 acres of proposed mines considered by the proposed statement. They said the EIS assumed wetlands mitigation projects would be successful, although they said they had not been in the past, that groundwater resources for coastal counties were not taken into consideration, and that consumption by other water users was not properly considered. The deadline for filing comments on the proposed EIS ended last week. Officials from two other counties, Hardee and DeSoto, which are inland and are where most of the mining will take place, were not opposed to the EIS.
Irish workers hired for Canadian labor shortage
Saskatoon — Some 280 skilled Irish workers were recruited by Canadian construction firms in March to supply the need for workers in new potash and oil and gas construction projects in Western Canada. The recruitment recently made news as some 50 pipefitters, some 20 Irish recruits, were laid off by PCL Construction, a contractor at Agrium Inc.’s Vanscoy potash expansion. PCL stressed to Green Markets that there is no work slowdown at Vanscoy, that the pipefitters would just not be needed again until early next year. PCL said it offered the Irish workers jobs at other Saskatchewan work sites, but they refused. The employees are reportedly now working with provincial authorities to find work.
ICL drops out of port bid
Tel Aviv — Israel Chemicals Ltd. (ICL) has dropped out of the Israeli government tender for the privatizing of the southern port of Eilat. The company was the sole bidder in the tender. However, the government decided to extend the tender until Aug. 5 in hopes that other interested parties would reconsider. The ICL bid came under strong public criticism over the dominant position of Israel Corp., which owns a majority stake in ICL, in the country’s economy.
Acid leak sent 11 to hospital
Urbana, Ill. — Eleven employees at auto parts maker Guardian West Flex-n-Gate were taken to the hospital July 25 due to a sulfuric acid leak. Fire Chief Mike Dilley told the local press that the spill occurred when a truck driver hooking up for the acid transfer apparently failed to make a proper connection. The driver was not injured. All employees were reported out of the hospital and back at work. OSHA has opened an investigation into the spill. In an unrelated development, OSHA proposed June 14 to fine Guardian West $57,000 for failing to monitor workers’ exposure to sulfuric acid and other chemicals while cleaning electroplating tanks.
The Week in Fertilizer Stocks
The Week in Fertilizer Stocks
| Producer | Symbol | Price | Week Ago | Year Ago |
| Agrium | AGU | 94.19 | 94.91 | 85.62 |
| CF Industries | CF | 194.39 | 194.62 | 152.91 |
| CVR Partners | UAN | 25.73 | 23.93 | 23.23 |
| Intrepid Potash | IPI | 22.01 | 22.82 | 31.44 |
| Mosaic | MOS | 56.99 | 57.98 | 68.84 |
| PotashCorp* | POT | 42.67 | 44.99 | 56.84 |
| Rentech Nitrogen | RNF | 30.32 | 28.76 | N/A |
| Terra Nitrogen | TNH | 226.20 | 216.63 | 151.30 |
| Distribution/Retail | ||||
| Andersons Inc. | ANDE | 37.45 | 36.36 | 39.08 |
| Deere & Co. | DE | 76.41 | 75.03 | 76.82 |
| Scotts | SMG | 39.03 | 38.71 | 48.27 |
| * represents three-for-one stock split | ||||
Spot Barge Prices
Martin concludes NH3 and acid agreements
Kilgore, Texas — Martin Product Sales LLC (MPS), a unit of Martin Resources, has announced exclusive multi-year agreements with Mississippi Power for the transportation and marketing of anhydrous ammonia and sulfuric acid to be produced at the utility’s 582-megawatt integrated coal gasification combined cycle (IGCC) power plant in Kemper County, Miss., currently under construction. Initial production is slated for mid-2014. Ammonia capacity will be approximately 22,000 st/y, with sulfuric acid at 225,000 st/y. The IGCC plant is projected to cost some $2.76 billion. As of March 31, 2012, some $1.3 billion has been spent on the plant. A lawsuit by the Sierra Club has complicated matters. In June, the Mississippi Public Service Commission (PSC) denied Miss Power any cost recovery on the plant until the legal challenges by the Sierra Club have been resolved. This denies Miss Power’s ability to collect financing costs of the plant while under construction, which the utility says will ultimately make it more expensive for ratepayers. Miss Power is appealing the PSC ruling to the Mississippi Supreme Court. The plant will use locally mined lignite from a mine adjacent to the plant. Miss Power will own the mine and has executed a 40-year agreement with Liberty Fuels Co. LLC, a unit of The North American Coal Corp., to develop, construct, and manage the mining operations. The cost of developing the mine is put at $245 million. The mine is slated to be in service in June 2013. The IGCC plant will also produce by-product CO2. Denbury Resources Inc., Dallas, agreed in 2011 to purchase 70 percent of the CO2 captured from the facility. Miss Power will deliver an estimated 115 mmcf/d of CO2 to Denbury’s Heidelberg Field in Jasper County, Miss., with first deliveries expected in 2014.