All Posts from November 6, 2012

CF reports record 3Q earnings

CF Industries Holdings Inc. reported record earnings, earnings per share and EBITDA for the third quarter ending Sept. 30, 2012. Net earnings attributable to shareholders were up 22 percent to $403.3 million ($6.35 per diluted share) on sales of $1.36 billion, compared to the year-ago $330.9 million ($4.73 per share) on sales of $1.4 billion. EBITDA was $729.1 million, up from the year-ago $640.8 million.

CF said markets were characterized by good demand in North America during the quarter, as purchasing activity for summer fill programs was brisk and fertilizer dealers and distributors sought to replenish inventories in anticipation of a high level of fall field work to support large expected crop plantings in 2013. However, CF said activity was less than expected during the quarter in international markets, particularly Central and South America.

Total sales volumes were off 2 percent to 3.5 million st in the quarter largely due to lower urea sales compared to the prior year period. Overall, higher prices helped offset lower volumes in the nitrogen segment. Lower phosphate prices resulted from lower global demand relative to the year-ago period, while phosphate volume increases resulted from strong North American demand.

Nine month net earnings were $1.38 billion ($21.19 per share) on sales of $4.62 billion, up from the year-ago $1.1 billion ($15.41 per share) on sales of $4.38 billion. EBITDA was $2.48 billion, up from the year-ago $2.11 billion.

STC issues awards in urea tender – Nov. 6, 2012

The State Trading Corporation (STC) of India issued awards totaling 1.187 million mt of urea based on the tender that closed Oct. 31.

As in the past, the STC awards have different prices for different ports. The range is $405.92-$430/mt CFR. The Department of Fertilizer imposed a limitation on East Coast ports, with a maximum of 500,000 mt set for these ports. The rest will need to go to the West Coast.

Awards as of Nov. 6 follow:

Talks are reportedly still underway for an additional 200,000 mt. STC had stipulated a validity date of Nov. 7 on all offers.

Based on the offers in the tender, Swiss Singapore and Transglobe will be shipping Iranian tons, and AgriCommodities will be sending Chinese material. The rest of the companies officially offered tons from “open” sources.

Sources expect most of the tonnage to come from China in a move to clear out tons sitting in bonded warehouses.

The potential total amount of urea from this tender will still leave India short by 1 million mt for the rest of the year. As the STC tender closed, sources predicted another tender to be called within the next couple weeks.

Liquid fertilizer company to build Louisiana production facility

Ohio-based Nachurs Alpine Solutions has announced plans to renovate a 174,500-square-foot manufacturing facility in Louisiana’s Iberville Parish to produce the company’s liquid fertilizer products and distribute them to agricultural customers in the South and globally.

Nachurs recently purchased a 69-acre parcel of the Ciba-Geigy Corp. site in St. Gabriel, La., and will invest $13.9 million to renovate existing structures at the location. Louisiana Economic Development (LED) estimates the project will create 16 new direct jobs with an average salary of more than $45,700 plus benefits, as well as an additional 44 indirect jobs.

Construction will begin before the end of the year and will be completed by mid-2014, with Nachurs beginning to hire employees during the construction phase. Nachurs is headquartered in Marion, Ohio, and plans to use the St. Gabriel facility to supply customers in Louisiana and the South, as well as export markets.

“Our reasons for locating to the Louisiana site are to better serve and expand our fertilizer and industrial businesses in the South and to have good port access for importing and exporting," said Jeff Barnes, chief financial officer for Nachurs Alpine Solutions. “The Ciba-Geigy site will allow us to undertake new manufacturing processes, and Iberville Parish provides us with a strong workforce.”

Nachurs manufactures and sells liquid fertilizer for a wide variety of agricultural applications, including precision-placed, seed-safe, starter fertilizers for corn, soybean, and wheat. The company also develops liquid fertilizer for canola, alfalfa, potatoes, sugar beets, lentils, and various other fruit and vegetable crops. Nachurs has five other manufacturing facilities in the U.S. and Canada, along with 30 product depots for customer convenience.

“Nachurs Alpine Solutions is a prime example of companies selecting Louisiana as the next great state for business investment,” said Louisiana Gov. Bobby Jindal, who joined Nachurs officials in making the announcement. “Nachurs joins a long list of chemical manufacturers investing in Louisiana because of our world-class energy infrastructure, strong business climate and incomparable workforce. This project also represents the redevelopment of a former industrial site and exemplifies how we continue to make use of our existing assets to attract new career opportunities for Louisiana families."

Ciba-Geigy developed the St. Gabriel location in 1970 as an herbicide production facility, and much of the original site has been retained through mergers involving Syngenta Crop Production Inc. The Iberville Chamber of Commerce, LED, and the Baton Rouge Area Chamber (BRAC) worked with Nachurs to secure additional acreage and identify the site as a prime location on the Mississippi River for the company’s sixth manufacturing facility.

Nachurs is expected to utilize incentives from Louisiana’s Quality Jobs and Industrial Tax Exemption programs to finance the facility’s construction.