CF Industries Falling After Earnings Report (CF)

Fertilizer company CF Industries

reported Q2 net earnings attributable to common stockholders of $105.1 million, or $1.54 per diluted share, down from earnings of $213.0 million, or $4.33 per diluted share, in the 2009 second quarter. On an adjusted basis, EPS was $2.51, which came in below analysts' EPS expectations of $3.16. Net sales were $1.3 billion which was a 32% increase over the $991 million reported in Q2 2009. This beat analysts' consensus revenue estimates of $1.23 billion. In the after hours session, CF shares have lost 3.39% to $82.89. Outlook and Update -Outlook is favorable for fall volume in North America due to likely early harvest and strong projected 2011 plantings. -Pricing momentum is positive for all products. -Integration of CF Industries and Terra generating expected cost synergies; additional opportunities identified to optimize business mix. -Company using available free cash flow to pay down bank debt.