Dow Jones Newswires | CF Industries Holdings Inc. swung to a
first-quarter loss on charges related to its recent acquisition of
rival fertilizer maker Terra as CF said revenue fell.

The company has suffered from weak demand since the economic downturn.
But CF saw demand slowly come back in the fourth quarter as stronger
buying interest returned and prices rose sequentially. The company on
Friday expressed optimism about the spring planting season, as U.S.
corn acreage planting increased.

Chairman and Chief Executive Stephen Wilson added, “Lighter-than-normal stocking activity this year sets us up for tight conditions in the second quarter, which favor a producer with the storage capacity to enable it to capitalize on demand when it arises in the field.”

CF last month completed its $4.72 billion takeover of Terra, ending a year-long pursuit of the company and trumping an earlier deal Terra had with Norway’s Yara International ASA.

CF reported a loss of $4.4 million, or 9 cents a share, compared with a prior-year profit of $62.7 million, or $1.28 a share, a year earlier. The results included $136.1 million of merger costs, the lion’s share being a $123 million termination fee paid to Yara for that deal falling through.

Revenue decreased 26 percent to $502.4 million, in line with last month’s downbeat forecast.

Gross margin rose to 25.7 percent from 23.8 percent.

Sales in the company’s nitrogen segment–its biggest by revenue–decreased 28 percent but volume fell a much smaller 5 percent. Phosphate sales fell 22 percent as volume was down 9 percent amid lower exports.

Shares closed at $74.16 Thursday and were inactive premarket. The stock has fallen 18% this year.