X
<

CF Industries' Performance and Outlook after 2Q17

PART:
1 2 3 4 5 6 7 8 9 10
Part 6
CF Industries' Performance and Outlook after 2Q17 PART 6 OF 10

Why Did CF Industries’ Shipment Segment Grow?

Segment shipments

Earlier in this series, we discussed how CF Industries’ (CF) shipments impacted its sales. We saw that the overall shipments grew as much as 11% YoY (year-over-year). However, the growth had a limited impact on the company’s sales.

Why Did CF Industries&#8217; Shipment Segment Grow?

Interested in CF? Don't miss the next report.

Receive e-mail alerts for new research on CF

Success! You are now receiving e-mail alerts for new research. A temporary password for your new Market Realist account has been sent to your e-mail address.

Success! has been added to your Ticker Alerts.

Success! has been added to your Ticker Alerts. Subscriptions can be managed in your user profile.

Shipment growth by segments

Out of the five segments above, the shipments for UAN (urea ammonium nitrate) fell as much as 11% YoY to 1.6 million tons. According to CF Industries, the shipments fell YoY due to unfavorable weather conditions in North America, which pushed back the purchases.

In contrast, the remaining four segments helped push the overall shipments higher during 2Q17. The ammonia segment’s shipments grew 32% YoY to 1.2 million metric tons. The granular urea shipments grew as much as 26% YoY to 1.2 million metric tons.

According to CF Industries, the higher ammonia and urea shipments YoY were due to an increase in its production capacity, which left the company with more product to sell.

Ammonium nitrate shipments also grew as much as 19% YoY to 0.54 million tons, while the other segments’ shipments grew 17% to 0.5 million tons during the same period.

Margins

Companies like CF Industries, PotashCorp (POT), CVR Partners (UAN), and Agrium (AGU) expanded their capacities over the years when the fertilizer prices supported higher margins. As a result, there was excess capacity, which squeezed these producers’ (NANR) margins.

In the next part, we’ll discuss CF Industries’ margins in more detail.

X

Please select a profession that best describes you: