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CF · CF Industries Holdings

21 filings

10-K

CF 10-K Annual Reports

CF Industries Holdings - 21 annual reports

Filing record · 2016–202610-K1110-Q328-K158

2025
CF Industries Holdings Annual Report, Year Ended Dec 31, 2025
CF Industries Holdings reported net sales of $7.08 billion for 2025, up from $5.94 billion in 2024, on higher average selling prices of $372 per ton versus $313 per ton, with sales volume of 19.1 million tons. Gross margin rose to $2.72 billion from $2.06 billion, and net earnings attributable to common stockholders were $1.46 billion, or $8.97 per diluted share, compared with $6.74 per diluted share in 2024. Higher natural gas costs, which rose 38% to $3.31 per MMBtu including realized derivatives, reduced gross margin by $316 million, partially offsetting the pricing gains. The filing highlights two significant operating and capital developments. An November 2025 incident at the Yazoo City complex idled all production there, with management not expecting production to resume until the fourth quarter of 2026 at the earliest. The company also recorded asset impairment charges totaling $76 million tied to Yazoo City and the abandonment of its Donaldsonville electrolyzer project. On the growth side, the company formed the Blue Point joint venture with JERA and Mitsui, which is consolidated as a VIE, and estimates the low-carbon ammonia facility will cost approximately $3.7 billion, with production expected to begin in 2029. Consolidated 2026 capital expenditures are anticipated at approximately $1.3 billion. Balance sheet and shareholder returns remained substantial. Cash and cash equivalents were $1.98 billion at year-end, and total funded debt was $3.25 billion, consisting solely of unsecured senior notes. The company repurchased $1.37 billion of common stock in 2025 and paid $326 million in common dividends, while CHS, which holds an approximately 11% interest in CF Industries Nitrogen, LLC, was the largest customer at about 13% of consolidated net sales.
Feb 25, 2026
2024
CF Industries Holdings Annual Report, Year Ended Dec 31, 2024
CF Industries Holdings, Inc. reported net sales of $5.94 billion in 2024, down from $6.63 billion in 2023, on total sales volume of 18.9 million product tons versus 19.1 million a year earlier. The average selling price fell to $313 per ton from $347, which the company attributes to lower global energy costs reducing the global market clearing price. Gross margin declined to $2.06 billion from $2.55 billion, but lower natural gas costs partially offset the pricing decline: the total cost of natural gas used for production fell 35% to $2.40 per MMBtu. Net earnings attributable to common stockholders were $1.22 billion, or $6.74 per diluted share, compared with $1.53 billion, or $7.87 per share, in 2023. Cash generation remained substantial, with net cash from operating activities of $2.27 billion. The company returned significant capital to shareholders, repurchasing approximately 18.8 million shares for about $1.51 billion and paying $364 million in common dividends. Quarterly dividends were raised to $0.50 per share from $0.40. Cash and cash equivalents ended the year at $1.61 billion, and total funded debt was $3.0 billion in senior notes, with $750 million undrawn under the revolving credit facility. The company is pursuing a clean energy strategy centered on low-carbon ammonia. Carbon capture projects are under way at Donaldsonville (expected to commence in 2025) and Yazoo City (expected in 2028). A FEED study for a greenfield autothermal reforming ammonia facility with CCS at Blue Point estimates a cost of approximately $4 billion, and a final investment decision has not been reached. The Donaldsonville electrolyzer commissioning was suspended after an issue identified in the fourth quarter of 2024.
Feb 20, 2025
2023
CF Industries Holdings Annual Report, Year Ended Dec 31, 2023
CF Industries Holdings, Inc. reported net sales of $6.63 billion for 2023, down from $11.19 billion in 2022, as average selling prices fell to $347 per ton from $610 per ton, partially offset by sales volume of 19.1 million tons. Gross margin declined to $2.55 billion from $5.86 billion, while lower natural gas costs ($3.67 per MMBtu versus $7.18 in 2022) cushioned the impact of weaker pricing. Net earnings attributable to common stockholders were $1.53 billion, or $7.87 per diluted share, compared with $3.35 billion, or $16.38 per diluted share, in 2022. During 2023 the company acquired the Waggaman, Louisiana ammonia facility from Dyno Nobel Louisiana Ammonia, LLC on December 1, 2023 for a purchase price of $1.675 billion, funded with $1.223 billion of cash on hand, and it has an 880,000-ton nameplate ammonia capacity. Cash and cash equivalents were $2.03 billion at year-end, with $3.0 billion of senior notes outstanding and $750 million of unused revolver capacity. The company also reported that its Board declared a quarterly dividend of $0.50 per share in January 2024, up from $0.40, and that it repurchased $580 million of shares in 2023 under its share repurchase programs. The strategic focus is on low-carbon and green ammonia. The Donaldsonville green ammonia project is in commissioning, a CO2 dehydration and compression facility costing an estimated $200 million is under construction, and a FEED study estimated a greenfield low-carbon ammonia facility in Louisiana at roughly $3 billion, with a final investment decision targeted for the second half of 2024. The filing identifies natural gas price volatility, global nitrogen oversupply, and the timing of clean ammonia demand as key risks to these plans.
Feb 22, 2024
2022
CF Industries Holdings Annual Report, Year Ended Dec 31, 2022
CF Industries Holdings, Inc. reported net sales of $11.19 billion for 2022, up from $6.54 billion in 2021, driven by higher average selling prices of $610 per ton versus $353 per ton, partly offset by a 1% decline in sales volume to 18.3 million tons. Gross margin rose to $5.86 billion from $2.39 billion, and net earnings attributable to common stockholders reached $3.35 billion, or $16.38 per diluted share, compared with $917 million, or $4.24 per diluted share, in 2021. Cost of sales increased as natural gas costs rose to $7.18 per MMBtu from $4.21, reducing gross margin by approximately $1.05 billion. The year also included $258 million of pre-tax impairment and restructuring charges tied to U.K. operations, including the planned permanent closure of the Ince facility and the temporary idling of ammonia production at Billingham in September 2022. The income tax provision rose to $1.16 billion, reflecting higher taxable income and a $78 million provision related to the Canada Revenue Agency Competent Authority Matter. Cash from operations was $3.86 billion, and the company repurchased $1.35 billion of shares while paying $619 million in distributions to noncontrolling interest in CFN. Total funded indebtedness was approximately $3.0 billion at year-end, and cash and cash equivalents were $2.32 billion. The company is advancing its clean energy strategy, including a 20 MW green hydrogen project at Donaldsonville with a estimated cost of approximately $100 million, a $200 million CO2 dehydration and compression project tied to a definitive offtake agreement with ExxonMobil, and a blue ammonia facility under study with Mitsui, with a final investment decision expected in the second half of 2023. Management expects 2023 capital expenditures of $500 million to $550 million.
Feb 23, 2023
2021
CF Industries Holdings Annual Report, Year Ended Dec 31, 2021
CF Industries Holdings, Inc. reported net sales of $6.54 billion in 2021, up from $4.12 billion in 2020, as average selling prices rose 74% to $353 per ton while sales volume fell 9% to 18.5 million product tons. Gross margin increased to $2.39 billion from $801 million, but results were offset by $521 million of impairment charges tied to the U.K. energy crisis. Net earnings attributable to common stockholders were $917 million, or $4.24 per diluted share, compared with $317 million, or $1.47 per diluted share, in 2020. Excluding the impairment charges, the filing presents as-adjusted net earnings of $1.38 billion, or $6.38 per diluted share. The increase in earnings was driven by a tighter global nitrogen supply and demand balance, with higher global energy costs reducing operating rates elsewhere. Natural gas costs rose 88% to $4.21 per MMBtu, reducing gross margin by $663 million, and manufacturing and maintenance costs reduced it by $494 million. Cash flow from operations increased to $2.87 billion from $1.23 billion, and cash and cash equivalents ended the year at $1.63 billion. Total funded indebtedness was $3.5 billion, and the company repurchased about 8.6 million shares for $540 million in 2021. The company is also pursuing a clean energy strategy, including a green ammonia project at Donaldsonville with an estimated cost of about $100 million and blue ammonia projects authorized for up to 1.25 million tons of annual production starting in 2024. Ince, U.K. production remained idled as of the filing date, and the U.K. operations generated negative gross margin in 2021.
Feb 24, 2022
2020
CF Industries Holdings Annual Report, Year Ended Dec 31, 2020
CF Industries Holdings, Inc. reported net sales of $4.12 billion for 2020, down from $4.59 billion in 2019, as average selling prices fell to $203 per ton from $235 per ton. Sales volume rose to a record 20.3 million product tons, up from 19.5 million tons in 2019, but this partly offset the price decline. Gross margin fell to $801 million from $1,174 million, and net earnings attributable to common stockholders declined to $317 million from $493 million, or diluted EPS of $1.47 versus $2.23. Lower realized natural gas costs of $2.24 per MMBtu, down from $2.74, helped cushion the margin compression. The company describes itself as a leading global manufacturer of hydrogen and nitrogen products and is positioning itself around green and low-carbon ammonia, with an initial green ammonia project at its Donaldsonville complex targeting about 20,000 tons per year. Capital expenditures fell to $309 million in 2020 from $404 million, and 2021 capital expenditures are estimated at around $450 million. The company ended 2020 with $683 million of cash and cash equivalents and $750 million of unused revolving credit capacity, against $4.0 billion of total funded debt. Key risks for investors include the cyclical, commodity nature of nitrogen pricing, dependence on North American natural gas, concentration in a limited number of key facilities, and the West Fertilizer Co. litigation. The company also disclosed that it will redeem its $250 million 3.400% senior secured notes due December 2021 on March 20, 2021, at an estimated cost of about $258 million including accrued interest.
Feb 24, 2021
2019
CF Industries Holdings Annual Report, Year Ended Dec 31, 2019
CF Industries Holdings, Inc. reported net earnings attributable to common stockholders of $493 million in 2019, up 70% from $290 million in 2018, with diluted earnings per share of $2.23 versus $1.24. Net sales rose 4% to $4.59 billion on a 1% increase in sales volume to 19.5 million tons and a 3% increase in average selling prices to $235 per ton. Gross margin increased 28% to $1.17 billion, driven primarily by a 13% decrease in natural gas costs, with gross margin percentage reaching 25.6% versus 20.7% in 2018. Net earnings attributable to noncontrolling interests rose to $153 million, reflecting the approximately 11% CHS minority stake in CF Industries Nitrogen, LLC (CFN). Results were supported by a $45 million pre-tax gain on the sale of the Pine Bend facility and $37 million of insurance proceeds, partly offset by a $16 million PLNL withholding tax charge and a $21 million loss on early debt extinguishment. Operating cash flow was $1.51 billion, and the company repurchased 7.6 million shares for $337 million under its 2019 program. Total funded debt was $4.0 billion at December 31, 2019, with $750 million of revolving credit availability, and the company cited a credit rating of BB+ (S&P, positive outlook), Ba1 (Moody's, stable) and BB+ (Fitch, positive outlook) as of February 18, 2020. The filing notes ongoing exposure to the West Fertilizer Co. litigation, with the next group of cases reset for trial beginning September 14, 2020, and significant regulatory exposure to greenhouse gas rules in Canada, the UK and Alberta.
Feb 24, 2020
2018
CF Industries Holdings Annual Report, Year Ended Dec 31, 2018
CF Industries Holdings, Inc. reported net sales of $4.43 billion for 2018, up 7% from $4.13 billion in 2017, driven by an 11% increase in average selling prices to $229 per ton, partially offset by a 3% decrease in sales volume to 19.3 million tons. Gross margin rose to $917 million from $434 million, and operating earnings increased to $766 million from $234 million. Net earnings attributable to common stockholders were $290 million, or $1.24 per diluted share, compared with $358 million, or $1.53 per diluted share, in 2017; the 2017 result included a $491 million income tax benefit from the Tax Cuts and Jobs Act. The company is a leading global fertilizer and chemical company operating nitrogen complexes in the United States, Canada and the United Kingdom, including the Donaldsonville, Louisiana complex the filing describes as the world's largest nitrogen fertilizer complex. Cash and cash equivalents were $682 million at December 31, 2018, and total debt was $4.70 billion. In 2018 the company completed a $388 million purchase of the Terra Nitrogen public units and a $500 million share repurchase program, and on February 13, 2019 its board authorized a further $1 billion repurchase program through December 31, 2021. The filing also highlights risks that investors should weigh: the business is cyclical and exposed to global nitrogen oversupply, natural gas price volatility, a significant concentration in key facilities, credit rating downgrades in 2016 and a BB+/Ba2/BB+ rating profile, and pending litigation from the 2013 West Fertilizer Co. explosion, with the next group of cases reset for trial beginning July 23, 2019.
Feb 22, 2019
2017
CF Industries Holdings Annual Report, Year Ended Dec 31, 2017
CF Industries Holdings, Inc. reported net sales of $4.13 billion for 2017, up 12% from $3.69 billion in 2016, driven by an 18% increase in sales volume that offset a 5% decline in average selling prices to $207 per ton. Gross margin fell to $430 million from $840 million, reflecting lower selling prices, a $61 million unrealized mark-to-market loss on natural gas derivatives (versus a $260 million gain in 2016), and higher depreciation from the completed capacity expansion projects at Donaldsonville, Louisiana and Port Neal, Iowa. Net earnings attributable to common stockholders were $358 million, or $1.53 per diluted share, compared with a net loss of $277 million in 2016. The result was supported by a $491 million income tax benefit from the Tax Cuts and Jobs Act, which the filing says added $2.10 to diluted earnings per share. The filing describes a market in transition: new global nitrogen capacity has outpaced demand, and the company expects the lower-priced environment to persist until supply and demand become more balanced. Management notes that the final North American capacity additions are expected to come fully online by mid-2018. Operating cash flow rose to $1.63 billion, aided by an $815 million federal tax refund, and cash and cash equivalents ended the year at $835 million. Total funded debt was $4.69 billion, and the company redeemed its $800 million 6.875% notes due 2018 and repurchased about $300 million of its 7.125% notes due 2020, recording a $53 million loss on debt extinguishment. Subsequent to year end, Terra Nitrogen GP Inc. elected to purchase all 4,612,562 publicly traded common units of Terra Nitrogen Company, L.P. (TNCLP) on April 2, 2018, at $84.033 per unit, for approximately $390 million in cash, which would give the company 100% ownership of TNCLP. The filing also reports credit ratings of BB+ (S&P, negative outlook), Ba2 (Moody's, stable outlook), and BB+ (Fitch, negative outlook) as of February 15, 2018.
Feb 22, 2018
2016
CF Industries Holdings Annual Report, Year Ended Dec 31, 2016
CF Industries Holdings, Inc. reported a net loss attributable to common stockholders of $277 million in 2016, compared with net earnings of $700 million in 2015, a decline of $977 million. Net sales fell 14% to $3.69 billion, driven by a 31% decline in average selling prices, which the filing attributes to excess global nitrogen supply. Gross margin fell 46% to $840 million, though the company cites offsetting benefits from a $260 million unrealized mark-to-market gain on natural gas derivatives and a 14% increase in sales volume. The results also include $716 million of pre-tax significant items, among them a $134 million impairment of the PLNL equity investment, a $167 million loss on debt extinguishment, and a $179 million in transaction costs including a $150 million termination fee paid to OCI. The company completed its Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects in 2016 at a total capital cost of $5.2 billion, increasing production capacity by approximately 25%. The CHS strategic venture closed on February 1, 2016, with CHS paying $2.8 billion for a minority equity interest in CF Industries Nitrogen, LLC. Liquidity improved, with cash and cash equivalents rising to $1.16 billion and total debt of $5.78 billion, though credit ratings were cut by all three agencies in 2016 and the company expects an approximately $816 million federal tax refund in the third quarter of 2017. The filing describes a continued lower-priced environment, with management expecting prices to rise into the 2017 spring season but expecting the lower-priced environment to persist until global supply and demand become more balanced. Risks highlighted include global oversupply, natural gas price volatility, the West Fertilizer litigation, credit rating downgrades, and the curtailment of natural gas supply to the PLNL joint venture in Trinidad.
Feb 23, 2017
2015
CF Industries Holdings Annual Report, Year Ended Dec 31, 2015
CF Industries Holdings, Inc. reported 2015 net sales of $4.31 billion, down from $4.74 billion in 2014, and net earnings attributable to common stockholders of $699.9 million, or $2.96 diluted EPS, versus $1.39 billion and $5.42 in 2014. The 2014 figures were boosted by a $750.1 million pre-tax gain on the sale of the phosphate business. Gross margin fell to $1.55 billion from $1.78 billion, driven by lower average selling prices (down 8%, per the filing) and a $176.3 million unrealized mark-to-market loss on natural gas derivatives, partly offset by lower physical natural gas costs. Results also absorbed $56.9 million of transaction costs and a $61.9 million impairment of the PLNL joint venture investment. The company's balance sheet and cash position shifted materially during 2015. Capital expenditures rose to $2.47 billion as the Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects advanced; the Donaldsonville urea plant came online in November 2015, with the remaining plants expected in mid-2016. Cash and equivalents fell to $286.0 million from $1.99 billion, and total debt rose to $5.59 billion. The company acquired the remaining 50% of CF Fertilisers UK for $570.4 million and repurchased 8.9 million shares for $527.2 million. Two pending or recent transactions dominate the outlook. CF agreed to combine with the ENA Business of OCI N.V., with closing expected in mid-2016 and subject to shareholder and regulatory approvals, and it entered a strategic venture with CHS Inc., which purchased a minority equity interest in CF Industries Nitrogen, LLC for $2.8 billion effective February 1, 2016. The filing also notes that the pending combination carries a $150 million termination fee exposure and that the company expects substantially higher indebtedness after closing.
Feb 25, 2016
2014
CF Industries Holdings Annual Report, Year Ended Dec 31, 2014
CF Industries Holdings, Inc. reported net earnings of $1.4 billion for 2014, compared to $1.5 billion in 2013, a decline of $74.3 million or 5% in net earnings attributable to common stockholders. Diluted earnings per share rose to $27.08 from $24.74, helped by share repurchases of 7.7 million shares for $1.9 billion. Results were significantly affected by the March 2014 sale of the phosphate business to Mosaic for approximately $1.4 billion in cash, which produced a pre-tax gain of $750.1 million. Excluding that gain, the Nitrogen Product Segments saw gross margin fall by $676.9 million, or 28%, driven by lower average selling prices, higher natural gas costs and mark-to-market losses on natural gas derivatives. Net sales declined $731.5 million, or 13%, to $4.7 billion, and gross margin fell 29% to $1.8 billion. Net cash provided by operating activities was $1.4 billion. Capital expenditures rose to $1.8 billion, primarily for the Donaldsonville, Louisiana and Port Neal, Iowa capacity expansion projects, whose estimated total cost increased to approximately $4.2 billion from $3.8 billion, with start-ups scheduled from the third quarter of 2015 through 2016. Total debt rose to $4.6 billion following $1.5 billion of senior notes issued in March 2014, and cash and cash equivalents were $2.0 billion at year end. The company reorganized its reporting into five segments (ammonia, granular urea, UAN, other and phosphate). It disclosed a West, Texas fertilizer facility explosion litigation in which it has been named as a defendant, and it expects 2015 capital expenditures of approximately $2.0 billion to $2.5 billion. Shareholders should weigh the earnings decline in the core nitrogen business against the one-time phosphate gain and the large, cost-overrun-exposed expansion program.
Feb 26, 2015
2013
CF Industries Holdings Annual Report, Year Ended Dec 31, 2013
CF Industries Holdings, Inc. is one of the largest manufacturers and distributors of nitrogen and phosphate fertilizers in the world, organized into a nitrogen segment and a phosphate segment. In 2013, net sales fell 10% to $5.47 billion and net earnings attributable to common stockholders declined 21% to $1.46 billion, reflecting weak global fertilizer prices driven by Chinese nitrogen exports and weaker Indian phosphate demand, plus higher natural gas costs. Diluted EPS was $24.74, down from $28.59. Gross margin fell $593.1 million, or 19%, to $2.52 billion, with the phosphate segment hit hardest. In October 2013 the company agreed to sell its Florida phosphate mining and manufacturing business to The Mosaic Company for approximately $1.4 billion in cash, with closing expected in the first half of 2014 after the U.S. Department of Justice terminated its HSR waiting period in January 2014. CF also agreed to supply ammonia to Mosaic under two agreements. Meanwhile, the company is investing $3.8 billion in capacity expansions at Donaldsonville, Louisiana and Port Neal, Iowa, expected on-stream by 2016, and expects 2014 capital expenditures of roughly $2.5 billion. Total debt rose to $3.10 billion after a $1.5 billion senior notes issuance in May 2013, and the company repurchased 7.3 million shares for $1.4 billion in 2013 under a $3.0 billion program. Cash and cash equivalents were $1.71 billion at year-end 2013, down from $2.27 billion, and operating cash flow fell to $1.47 billion from $2.38 billion, largely due to lower customer advances and higher working capital needs. The company acquired the remaining 34% noncontrolling interest in Canadian Fertilizers Limited for $918.7 million in cash during 2013.
Feb 27, 2014
2012
CF Industries Holdings Annual Report, Year Ended Dec 31, 2012
CF Industries Holdings, Inc. reported net sales of $6.10 billion and net earnings attributable to common stockholders of $1.85 billion for 2012, up from $1.54 billion in 2011. Diluted earnings per share rose to $28.59 from $21.98, aided by higher nitrogen segment margins and a lower average share count after share repurchases. Gross margin rose $217.7 million to $3.11 billion, driven by the nitrogen segment (gross margin up $350.4 million to $2.91 billion), partially offset by a $132.7 million decline in phosphate gross margin to $199.7 million on lower average selling prices. The company's 2012 results were affected by a fourth-quarter amendment to CFL selling prices, effective retroactively to January 1, 2012, which reduced net sales by $129.7 million with no effect on net earnings attributable to common stockholders. Cash flow from operations was $2.38 billion, and cash and cash equivalents ended the year at $2.27 billion. Total debt was $1.6 billion, consisting of $800 million senior notes due 2018 and $800 million due 2020, with $491.0 million available under the revolving credit facility. Looking forward, the company announced plans in November 2012 to invest $3.8 billion in new ammonia and urea/UAN capacity at Donaldsonville, Louisiana and Port Neal, Iowa, scheduled to be on-stream by 2016, and expects 2013 capital spending of $1.4 billion to $1.7 billion. It also agreed to acquire the 34% of Canadian Fertilizers Limited held by Viterra for C$0.9 billion, subject to regulatory approval, which would give it 100% ownership of CFL. Key risks include natural gas price volatility, cyclical fertilizer demand, global competition, and permitting risk for the expansion projects.
Feb 27, 2013
2011
CF Industries Holdings Annual Report, Year Ended Dec 31, 2011
CF Industries Holdings, Inc. reported net sales of $6.10 billion for 2011, up 53.8% from $3.97 billion in 2010, and gross margin of $2.90 billion, up 145.5%. Net earnings attributable to common stockholders were $1.54 billion, or $21.98 diluted earnings per share, compared with $349.2 million ($5.34 per share) in 2010. The company is one of the largest nitrogen and phosphate fertilizer producers in the world, with its nitrogen segment generating $5.01 billion of net sales and $2.56 billion of gross margin. Its phosphate segment generated $1.09 billion of net sales and $332.4 million of gross margin. Average nitrogen fertilizer selling prices rose 38% and phosphate prices rose 36%, with the company citing higher planted acres, global supply constraints and the Terra acquisition as drivers. The 2011 results include an unrealized mark-to-market loss of $77.3 million pre-tax on natural gas derivatives, a $34.8 million impairment on the Woodward, Oklahoma methanol plant, and a $32.5 million gain on the sale of four dry product warehouses. Cash flow from operations rose to $2.08 billion, and cash and cash equivalents ended the year at $1.21 billion. The company repurchased about 6.5 million shares for $1.0 billion under a $1.5 billion authorization and paid dividends of $1.00 per share for the year. Total debt was $1.62 billion at year end, down from $1.96 billion. The filing also identifies material risks. These include volatile North American natural gas prices, cyclical industry oversupply, competition from Russian and Ukrainian imports, and an ongoing Clean Air Act NOV at Plant City for which the company cannot estimate penalties. Florida numeric nutrient criteria could make wastewater discharge limits more stringent, and the company has about 13 years of permitted Hardee phosphate rock reserves.
Feb 27, 2012
2010
CF Industries Holdings Annual Report, Year Ended Dec 31, 2010
CF Industries Holdings, Inc. reported 2010 net sales of $3,965.0 million, up from $2,608.4 million in 2009, and net earnings attributable to common stockholders of $349.2 million, down from $365.6 million. The increase in sales was driven primarily by the April 2010 acquisition of Terra Industries Inc., which contributed $1,377.5 million of net sales from April 5 through December 31, 2010. Gross margin rose to $1,179.5 million from $839.4 million, while diluted earnings per share fell to $5.34 from $7.42 as the share count increased with the 9.5 million shares issued for Terra and the 12.9 million shares sold in the April 2010 public offering. The Terra acquisition, for a total purchase price of $4.6 billion, was funded with a $1.75 billion senior secured bridge loan, a term loan of approximately $1.9 billion, $1.6 billion of senior notes, and equity. Long-term debt rose to $1,954.1 million at year-end 2010 from $0 in 2009, and cash and cash equivalents were $797.7 million. The company operates two segments. The nitrogen segment generated net sales of $3,187.5 million and a gross margin of $1,026.7 million, with a gross margin percentage of 32.2% in 2010 versus 42.6% in 2009. The phosphate segment generated net sales of $777.5 million and a gross margin of $152.8 million, with a gross margin percentage of 19.7%. Results in 2010 included $150.4 million of business combination and Peru project costs, $85.9 million of accelerated amortization of debt issuance costs, and a $17.0 million loss on early retirement of Terra's 2019 notes. Cash flow from operations was $1,194.4 million, up from $681.8 million in 2009. The company also reported exposure to Florida environmental matters, including the Plant City consent decree, and a pending nitric acid consent decree.
Feb 25, 2011
2009
CF Industries Holdings Annual Report, Year Ended Dec 31, 2009
CF Industries Holdings, Inc. reported a sharp decline in 2009 earnings as fertilizer selling prices fell from the record levels of 2008. Net sales decreased 33% to $2.6 billion ($2,608.4 million) from $3.9 billion, and gross margin fell $383.3 million to $839.4 million. Net earnings attributable to common stockholders were $365.6 million, or $7.42 per diluted share, compared with $684.6 million, or $12.13 per diluted share, in 2008. Results were shaped by a $87.5 million pre-tax unrealized mark-to-market gain on natural gas derivatives, $53.4 million of business combination costs tied to the proposed Terra Industries merger and Agrium's unsolicited acquisition proposal, and $35.9 million of Peru project development costs. The nitrogen segment was the stronger performer, with gross margin rising $13.9 million to $784.2 million, while the phosphate segment's gross margin collapsed $397.2 million to $55.2 million on lower average selling prices. Year-end 2009 liquidity was solid, with cash and cash equivalents of $697.1 million, short-term investments of $185.0 million, and $133.9 million of illiquid auction rate securities. Customer advances under the Forward Pricing Program fell to $159.5 million from $347.8 million. The filing also notes that CHS, one of three major customers accounting for about 43% of 2009 net sales, has said it will not renew its supply contract expiring June 30, 2010. Risk items highlighted in the filing include an EPA RCRA enforcement matter at the Plant City, Florida complex with potential civil penalties, ongoing negotiations with the Department of Justice, and a pending shareholder class action in Delaware related to the Agrium and Terra proposals. The company stated it cannot estimate the potential penalties from the Plant City environmental matters.
Feb 25, 2010
2008
CF Industries Holdings Annual Report, Year Ended Dec 31, 2008
CF Industries Holdings, Inc. reported a sharply higher 2008 as record fertilizer prices lifted results. Net sales rose to $3.9 billion from $2.8 billion in 2007, and net earnings reached $684.6 million, or $12.15 per diluted share, versus $372.7 million ($6.57) in 2007. Gross margin increased $552.7 million to $1,222.7 million, driven by higher nitrogen and phosphate selling prices, partially offset by higher raw material and natural gas costs, a $63.8 million pre-tax unrealized mark-to-market loss on natural gas derivatives, and a $57.0 million inventory write-down in the phosphate segment. Sales volume fell 11% to 7.9 million tons as weather and weaker demand hurt the fourth quarter, when prices weakened sharply. Balance sheet and capital allocation changed notably during the year. Cash and cash equivalents rose to $625.0 million, operating cash flow was $638.6 million, and the company repurchased 8.5 million shares for approximately $500 million under a program authorized in October 2008. The company also holds $177.8 million of auction rate securities that became illiquid in 2008 and are classified as noncurrent. Customer advances under the forward pricing program totaled $347.8 million at year-end, and the company's $250 million credit facility had no borrowings outstanding. The filing also discloses two major pending items as of the filing date. CF proposed to acquire Terra Industries at a fixed exchange ratio of 0.4235 CF shares per Terra share, and Terra's board rejected the proposal. On February 25, 2009, Agrium Inc. proposed to acquire all of CF's outstanding common stock in a cash-and-stock transaction, and CF's board said it would evaluate the proposal. Environmental matters at the Plant City, Florida complex, including an EPA referral to the Department of Justice, remain unresolved.
Feb 26, 2009
2007
CF Industries Holdings Annual Report, Year Ended Dec 31, 2007
CF Industries Holdings, Inc. reported a sharp improvement in 2007, with net earnings of $372.7 million (diluted EPS of $6.57) compared with $33.3 million in 2006. Net sales rose to $2.76 billion from $2.03 billion, and gross margin increased by $522.8 million to $670.0 million. The filing attributes the results to a strong market for fertilizer products, driven by a robust agricultural environment that raised both average selling prices and volumes. Nitrogen sales volume grew 10% to 6.9 million tons, and average nitrogen and phosphate selling prices were 22% and 46% higher, respectively. The company ended 2007 with cash and cash equivalents of $366.5 million and short-term investments of $494.5 million, up from $25.4 million and $300.2 million a year earlier. Customer advances under its forward pricing program rose to $305.8 million, and operating cash flow increased to $690.1 million. Management also raised the quarterly dividend from $0.02 to $0.10 per share in February 2008. Most of the short-term investments are auction rate securities, and the filing notes that auctions for several of these securities failed in February 2008. Key risks cited include the volatile and relatively high cost of North American natural gas, cyclical industry supply and demand, and concentration among large customers such as CHS Inc., GROWMARK and ConAgra. The filing also describes an EPA Notice of Violation at the Plant City, Florida phosphate complex under RCRA that has been referred to the Department of Justice, and a February 2008 unplanned outage at one of the two ammonia plants at the Medicine Hat facility.
Feb 27, 2008
2006
CF Industries Holdings Annual Report, Year Ended Dec 31, 2006
CF Industries Holdings, Inc. reported net earnings of $33.3 million for 2006, compared with a net loss of $39.0 million in 2005, on net sales of $1,949.5 million, essentially flat with $1,908.4 million in 2005. Gross margin fell to $147.2 million from $209.2 million, driven mainly by unfavorable natural gas costs and higher phosphate raw material costs, partly offset by higher ammonia and phosphate selling prices. The 2006 results included a $30.7 million pre-tax unrealized mark-to-market loss on natural gas derivatives and a $21.6 million pre-tax charge for asset retirement obligations and demolition costs, mainly tied to the closed Bartow, Florida complex. The 2005 loss was driven by a $99.9 million tax valuation allowance and a $28.3 million loss on debt extinguishment following the August 2005 IPO. The company operates two segments: nitrogen fertilizers (Donaldsonville, Louisiana, and a 66% economic interest in CFL's Medicine Hat, Alberta complex) and phosphate fertilizers (Plant City, Florida, and the Hardee County rock mine). Nitrogen gross margin declined to $98.5 million from $172.9 million, while phosphate gross margin rose to $48.7 million from $36.3 million. Stockholders' equity was $767.0 million at year-end 2006, with cash and cash equivalents of $25.4 million and short-term investments of $300.2 million. Total debt was $4.2 million, and $176.4 million was available under the $250 million senior secured revolving credit facility. The filing highlights material risks, including a pending EPA RCRA enforcement matter at Plant City in which the EPA has referred the matter to the Department of Justice, dependence on North American natural gas prices, customer concentration (three customers accounted for approximately 48% of 2006 net sales), and permitting for the Hardee mine expansion.
Feb 28, 2007
2005
CF Industries Holdings Annual Report, Year Ended Dec 31, 2005
CF Industries Holdings, Inc. reported a net loss of $39.0 million for 2005, compared with net earnings of $67.7 million in 2004. The loss reflects a $99.9 million non-cash charge to establish a valuation allowance against net operating loss carryforwards generated while the company operated as a cooperative, along with a $28.3 million loss on extinguishment of debt and $9.3 million of unrealized mark-to-market losses on natural gas derivatives. Net sales rose to $1,908.4 million from $1,650.7 million, driven by higher average selling prices, while gross margin fell to $209.2 million from $216.1 million as natural gas costs rose sharply in the second half of 2005. The company completed its initial public offering in August 2005, selling 47,437,500 shares for net proceeds of approximately $715.4 million, which it did not retain; it used the proceeds to pay its pre-IPO owners in the reorganization that ended its status as a cooperative. It repaid $235.6 million of term notes, leaving no long-term debt at year-end 2005, and ended the year with $37.4 million of cash and $179.3 million of short-term investments. Nitrogen fertilizer, which accounted for $1,469.7 million of net sales, remains the larger segment, while the phosphate segment produced $438.7 million in sales and a gross margin of $36.3 million. Investors should weigh the company's heavy dependence on North American natural gas, its concentrated customer base (Agriliance and GROWMARK together accounted for approximately 43% of 2005 net sales), and open environmental matters, including an EPA Notice of Violation at the Plant City, Florida complex. The company also disclosed a history of net losses in six of the last seven years and a dividend of $0.02 per share declared in February 2006.
Mar 20, 2006