For 1Q17, CF Industries’ (CF) sales rose 3% year-over-year to $1.04 billion from $1.0 billion in 1Q16. The company stated that in 1Q17, it had the “highest sales volume for any quarter in the company’s history.”
CF Industries reports sales under five segments. For 1Q17, the ammonia segment contributed 45% to the company’s sales growth. The segment’s sales rose 6% year-over-year (or YoY) to $282 million. This segment accounted for about 27% of the company’s sales during the quarter.
The UAN segment contributed 24% to the company’s 1Q17 sales growth with 3% YoY growth to $317 million. This segment accounted for 31% of the company’s total sales during the quarter. The company’s other segment contributed 21% to its 1Q17 sales growth. The segment’s sales rose faster than all other segments’ sales. The segment posted 10% year-over-year sales growth to $75 million.
Granular urea contributed 9% to the company’s 1Q17 sales growth, while the AN segment’s contribution to its sales growth during the quarter was flat. Granular urea rose 1% year-over-year to $238 million, while the AN segment sales remained unchanged at $125 million YoY.
Sales for fertilizer companies (XLB) such as CF, PotashCorp (POT), Agrium (AGU), and Intrepid Potash (IPI) are a function of shipment volume and commodity prices. Read Agricultural Fertilizer Industry: Your Comprehensive Overview to learn more about agribusiness drivers.
In the next part, we’ll discuss CF Industries’ shipments.