CF Industries Holdings Inc. reported second-quarter net income attributable to common stockholders of $312.6 million ($6.10 per diluted share) on sales of $1.47 billion, down from the year-ago $498.2 million ($8.38 per share) and $1.71 billion, respectively.
Quarter highlights included record ammonia shipments and the company expects a strong fall ammonia application season as well.
CF said first-half U.S. Gulf urea prices were at a $10-$30 per ton premium to international markets, and the strong domestic shipments left inventories low at the end of the season. However, it expects increased Chinese exports to put more pressure on prices during the second half.
CF expects over 90 million acres of corn will be planted in 2015 and expects robust nitrogen demand in second-half 2014.
Also during the quarter, CF had $20 million of idle plant costs related to the unscheduled downtime at the Woodward, Okla., nitrogen plant. In the meantime, CF said during the quarter it made significant strides at its expansion projects at Donaldsonville, La., and Port Neal, Iowa.
CF said its board has authorized a 50 percent increase in the company’s quarterly cash dividend from $1.00 to $1.50 per share, and authorized a $1 billion share repurchase program through Dec. 31, 2016.