Dow Jones Newswires | CF Industries Holdings Inc.’s
fourth-quarter earnings dropped 73 percent as revenue at the fertilizer
maker slid by more than half on lower prices and margins plunged.

“The quarter was marked by a late harvest and a poor fall ammonia application season,” said Chairman and Chief Executive Stephen R. Wilson. “But by the end of the quarter, stronger buying interest had returned and prices had risen, reflecting the reality that the U.S. market needs to attract enough nitrogen fertilizer from world markets to meet strong expected demand in the spring of 2010.”

Shares were up 1.5 percent to $102 premarket as results topped analysts’ expectations. Wilson also noted that looking forward, fundamental drivers “are in the sweet spot” and “the outlook for demand is robust,” while inventories across the marketing chain are relatively low.

CF reported a profit of $51.4 million, or $1.04 a share, down from $190.1 million, or $3.59, a year earlier. The results included net charges of 40 cents and 29 cents, respectively. Revenue dropped 53 percent to $506.7 million.

Analysts polled by Thomson Reuters had most recently forecast earnings of $1.15 on $500.4 million in revenue.

Gross margin fell to 24.9 percent from 33.6 percent amid the sales woes.

Sales in the company’s nitrogen segment–its biggest by revenue–declined 50 percent but volume was flat. Phosphate volume jumped 36 percent on strong exports.