(CF) CF Industries Holdings Restarts Nitrogen Plant

Fertilizer maker CF Industries Holdings, Inc. (CF) announced that it has resumed production at its Port Neal nitrogen complex which is located in Sergeant Bluff, Iowa, near Sioux City on the Missouri River.

The company had temporarily suspended production at the facility a few weeks back due to rising water levels near the plant.

The company announced that it can restart the plant, and it has begun the process to bring it back on line. The company will continue monitoring the situation in light of high water which is expected to continue for several weeks.

In May 2011, the company released its first quarter 2011 earnings delivering an EPS of $3.91 versus a loss of 9 cents in the year-earlier quarter.

The quarter noted some special items including a gain of $32.5 million or 28 cents per share, pertaining to the gain from sales of four dry product warehouses; $19.9 million or 17 cents per share related to the retirement of a bank term loan; $2.1 million or 2 cents per share related to restructuring and integration costs and $0.7 million or 1 cent per share, pertaining to the non-cash mark-to-market gain on natural gas derivatives.

Excluding these charges adjusted EPS amounted to $3.81 versus a loss of 9 cents in the year-ago quarter, striding ahead of the Zacks Consensus Estimate of $3.23.

Total sales of $1.17 billion in the reported quarter outperformed the sales of $502.4 million in the prior-year quarter, missing the Zacks Consensus Estimate of $1.23 billion.

Compared with the prior-year quarter, the company showed a drastic improvement with revenue and gains increasing manifold. The company also improved its balance sheet position by reducing debt and increasing cash balance. With strong cash flows the company has minimized its balance sheet concerns. Currently, CF Industries holds a Zacks #3 Rank (Hold) on the stock.

CF Industries Holdings Incorporated, headquartered in Deerfield, Illinois, is one of the largest manufacturers and distributors of nitrogenous and phosphatic fertilizer products in North America. The company’s principal products in the nitrogenous fertilizer business are ammonia, urea and urea ammonium nitrate solution (UAN). Its principal products in the phosphatic fertilizer business are diammonium phosphate (DAP) and monoammonium phosphate (MAP).

However, CF Industries faces stiff competition from Agrium Inc. (AGU), Potash Corp. of Saskatchewan Inc. (POT) and Koch Industries Inc.

AGRIUM INC (AGU): Free Stock Analysis Report

CF INDUS HLDGS (CF): Free Stock Analysis Report

POTASH SASK (POT): Free Stock Analysis Report

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