uploads///Fertilizer Companies Sales and Growth in Q

Sales for 8 Fertilizer Companies in 3Q17: A Comparison

Adam Jones - Author

Nov. 17 2017, Updated 5:35 p.m. ET

Sales growth

In the recent 3Q17 quarter, sales growth for fertilizer companies fell slightly YoY (year-over-year). The median sales growth for the eight companies we’ll be looking at in this series fell 2% YoY. Of these eight companies, four recorded YoY sales declines, while four recorded growth over the same period.

Article continues below advertisement

Companies with growth

Among the eight companies, CF Industries (CF) recorded the highest sales growth of 28% YoY to $870 million. Its sales growth came as a result of an increase in shipment volume, which was driven by the addition of new production capacity YoY. Agrium (AGU) was next with a sales growth of 8.7% YoY to 2.4 billion, driven by crop protection products under the umbrella of its retail segment. Israel Chemicals (ICL) reported a YoY sales growth of 4%, and Mosaic (MOS) reported a sales growth of 2% YoY.

Companies that declined

In contrast, Intrepid Potash (IPI) reported a YoY sales decline of 26%, followed by CVR Partners (UAN) with a sales decline of 12% YoY. Intrepid Potash’s sales fell as a result of lower potash shipment volumes and lower prices for its Trio product. CVR Partner’s sales fell primarily as a result of a lower price realization for ammonia and UAN (urea ammonium nitrate) prices.

In 3Q17, PotashCorp’s (POT) sales fell 7% YoY, and Terra Nitrogen’s (TNH) sales fell 6% over the same period as a result of lower ammonia and UAN prices, similar to CVR Partners.

The emerging theme

Shipment volumes and realized prices were key to the performances of the above companies (MOO). Some players have managed to increase shipments by increasing capacity, which may have come at the cost of others. On the other hand, movements in fertilizer prices for potash have positively impacted the potash segment, while the nitrogen and phosphate segments were negatively impacted.

In the next few parts of this series, we’ll look at the shipments and prices for each of the above companies.


Latest ICL-Israel Chemicals Ltd. News and Updates

    © Copyright 2022 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.