- CF Industries (NYSE:CF) -0.9% premarket after Q4 earnings fell short of analyst estimates, hurt by higher natural gas prices and negative derivatives impacts.
- CF says nitrogen expansion projects in Louisiana and Iowa now look to cost $4.2B, up from earlier expectations of $3.8B, after factoring in higher cost estimates for construction materials and labor in Iowa.
- A drop in crop prices to multi-year lows last year and a delayed U.S. harvest was expected to reduce fertilizer use; given the shortened fall season to apply fertilizer last year, a significant volume of nitrogen needs to be applied in H1 of 2015 to catch up, CF says.
- Q4 net nitrogen sales rose 3% Y/Y to $1.2B despite lower sales volume, buoyed by higher selling prices.
- Expects U.S. farmers to plant 90M acres of corn in 2015, after planting 90.6M acres in 2014.