CF Industries Holdings Inc. reported first quarter net income attributable to common stockholders of $708.5 million ($12.90 per diluted share) on sales of $1.13 billion, up from the year-ago $406.5 million ($6.47 per share) and $1.34 billion. However, the current year results included a $747.1 million gain on the sale of its phosphate business to The Mosaic Co. Absent the sale, first quarter gross margins were $442.8 million, down from the year-ago $675.1 million.
Nitrogen gross margins were down at $434.3 million on sales of $987.5 million from the year-ago $647.6 million and $1.1 billion, respectively.
CF said the first quarter saw outstanding ammonia movement, up 73 percent from year-ago levels, and that the company is well positioned to supply upgraded products in the second quarter.
Phosphate gross margins were $8.5 million on sales of $145.1 million, down from $27.5 million and $238.9 million, respectively.
LSB Industries Inc. reported a return to positive earnings for the first quarter 2014 to $11.3 million ($0.49 per dilute share) on sales of $178.5 million, compared to a year-ago loss of $368,000 ($0.02 per share) on sales of $150.7 million. The income is applicable to common stock.
Leading the way for LSB was its Chemical segment, which saw operating income increase to $28.8 million on sales of $115.2 million, compared to the year-ago loss of $3.8 million on sales of $77.5 million. LSB cited the upgrades and expansions that it is making within the Chemical business.
Yara International ASA and BASF report that they have made good progress with their plan to jointly build a world-scale ammonia plant on the U.S. Gulf Coast. The proposed plant would be located at the existing BASF site in Freeport, Texas, have an annual capacity of 750,000 mt, and be based on a hydrogen-synthesis process. Further details of the planned joint venture are currently under discussion between the parties.
The project is subject to final approval from the respective boards of directors of BASF and Yara.
BASF, which has a strong presence in the U.S., is currently a major user of ammonia for its U.S. downstream activities and intends to further strengthen its backward integration. Yara, with its global ammonia network and market expertise, seeks to strengthen its presence in the U.S.
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