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Friday, February 18, 2011

CF Industries Q4 Profit Beats View on Rising Fertilizer Demand (CF)

Fertilizer maker CF Industries Holdings, Inc. (CF) late Thursday posted better-than-expected fourth quarter earnings results, aided by strong demand for its products and the addition of sales from its acquisition of rival Terra Nitrogen(TNH).

The Deerfield, IL-based company reported fourth quarter net income of $200.3 million, or $2.78 per share, compared with $51.4 million, or $1.04 per share, in the year-ago period. Excluding one-time items, adjusted profit was $2.65 per share.

Revenue more than doubled from last year to $1.24 billion.

On average, Wall Street analysts expected a smaller profit of $2.56 per share, on lower revenue of $1.19 billion.

CF Industries shares fell 81 cents, or -0.6%, in premarket trading Friday.

The Bottom Line

CF Industries (CF) has been an “aggressive” recommendation, but is not a name I think yield-focused investors should be considering. The company has a .27% dividend yield, based on last night’s closing stock price of $147.81.

Disclosure I am Long TNH shares.

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