Yara results up in 2Q

Oslo-Yara International ASA reported a net income after minority interest of $166 million ($.54 per share) on sales of $1.959 billion for the second quarter ending June 30, 2006, compared to the year-ago $133 million ($.42 per share) and $1.903 billion, respectively. The company noted that the strong results came despite higher energy costs. Total fertilizer sales were down 4 percent from last year (4.927 million mt v. 5.131 million mt), primarily reflecting a planned reduction of low-margin sales outside Europe. Yara’s European sales increased in all markets except Italy. Lower fertilizer sales outside Europe and the Mediterranean were partly offset by a 13 percent volume increase for industry products. Yara noted that the U.S. market was oversupplied for the 2005/06 season, likely topping IFA estimates of a 5 percent decline in nitrogen consumption. Yara cited a Blue-Johnson estimate of a 7 percent decline for the period, with a forecasted increase in the longer term due to biofuel development. Yara also cited a drop in global grain stocks as a continued reason to support global demand. Yara said it continues to increase its market share in Europe, in a time when Western Europe is seeing declines in consumption, an estimated 3 percent during the second quarter. Yara figures are also up for the first six months, with net income of NOK1,894 on revenues of NOK23,935 versus the year-ago NOK1,763 and NOK23,114, respectively.