All Posts from November 1, 2011

Strike over at Haifa

The six month long strike at the Haifa Chemical plant in Haifa, Israel, is finally over. Nonpermanent employees will receive a 25 percent increase spread out over five years. Veteran employees will receive a 5 percent increase. However, the plant will not immediately reopen as Haifa must obtain the necessary permits from the Environmental Protection Ministry for toxic substances.

The strike began in early May and the following month management shut down the Haifa plant while production continued at its Mishor Rotem plant in southern Israel. However, in recent weeks the company was forced to buy potassium nitrate and other products from its competitors in order not to lose key customers.

The Andersons buys Immokalee Farmers Supply

The Andersons Inc., Maumee, Ohio, announced on Oct. 31 that it has completed the purchase of Immokalee Farmers Supply Inc., a business headquartered in Immokalee, Fla., that serves specialty vegetable producers in southwestern Florida.

“This purchase is consistent with our stated strategy of growing our business through an expanded footprint and product offering to serve more customers,” said Denny Addis, president of The Andersons’ Plant Nutrient Group. The Immokalee Farmers Supply operations will become a part of The Andersons Plant Nutrient Group’s Southern Region.

“This agreement reinforces The Andersons’ commitment to the Florida market and our desire to diversify our product and service offerings for growers and industries in this specialty-crop dominated state,” said Joe Hodges, vice president of the Plant Nutrient Group’s Southern Region.

Immokalee Farmers Supply was founded in 1984. The company’s vice president, Fred Heald, said the alignment with The Andersons “allows us to better serve our customers with new products and provide the additional resources needed in our markets.”

The Plant Nutrient Group is one of five operating groups of The Andersons and operates wholesale and retail facilities in Ohio, Michigan, Indiana, Illinois, Florida, Wisconsin, Minnesota, and Puerto Rico. These facilities service about 2 million tons of dry and liquid agricultural nutrients annually through warehousing/distribution, formulation, and custom application.

CF 3Q earnings surge

CF Industries Holdings Inc. on Nov. 1 reported record third quarter 2011 net earnings attributable to common stockholders of $330.9 million, or $4.73 per diluted share, compared to $48.2 million, or $0.67 per diluted share, in the third quarter of 2010. EBITDA was a third quarter record of $640.8 million, compared to $216.0 million in the third quarter of 2010.

Net sales in the third quarter of 2011 were a record $1.4 billion, up 53 percent from $917.1 million in the same period last year due primarily to higher product prices. Total sales volume was 3.5 million tons in the third quarter of 2011, compared to 3.4 million tons in the third quarter of 2010.

"We believe CF Industries’ third quarter performance reflects the underlying strength of our business model and good execution," said Stephen Wilson, CF chairman and CEO. "We generated 45 percent gross margin and outstanding earnings during our seasonally weakest quarter. These earnings, combined with strong order volume and customer deposits for future periods, allowed us to achieve quarterly operating cash flow of $1 billion for the first time in company history."

For more details, see the Green Markets Web-edition Nov. 4.