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CF Industries Holdings, Inc. Reports Best-Ever Net Income of $135.4 Million, or $2.38 per Diluted Common Share, for Fourth Quarter 2007.

Article Excerpt
Strong Operating Performance Capitalized on Robust Demand and Delivered Substantial Increases in Volumes, Sales, and Earnings

Company Announces Increase in Regular Quarterly Dividend to $0.10

DEERFIELD, Ill. -- CF Industries Holdings, Inc. (NYSE: CF):

Fourth Quarter Highlights:

* Sales and net income highest for any quarter since company's August 2005 IPO

* Net sales rose to $852.5 million, up 62 percent from fourth quarter 2006, driven by substantially higher prices and increased nitrogen volumes

* Operating earnings totaled $214.2 million, compared to $10.9 million in fourth quarter 2006

* Net income totaled $135.4 million, or $2.38 per diluted share, compared to $8.0 million, or $0.14 per share, in fourth quarter 2006

* Fourth quarter results included $12.9 million in non-cash, pre-tax unrealized gains, or $0.15 per diluted share on an after-tax basis, from mark-to-market adjustments on natural gas derivatives. The gains compare to $9.4 million in non-cash, pre-tax unrealized losses, or $0.10 per diluted share on an after-tax basis, for mark-to-market adjustments included in fourth quarter 2006 results

Full-Year Highlights:

* Improved pricing and volumes pushed net sales to nearly $2.76 billion, up 36 percent from $2.03 billion in 2006

* Net earnings totaled $372.7 million, or $6.57 per diluted share, up substantially from $33.3 million, or $0.60 per diluted share, in 2006

* Full-year results included $17.0 million in non-cash, pre-tax unrealized gains, or $0.19 per diluted share on an after-tax basis, from mark-to-market adjustments on natural gas derivatives. The gains compare to $30.7 million in non-cash, pre-tax unrealized losses, or $0.34 per diluted share on an after-tax basis, for mark-to-market adjustments included in 2006 results

Dividend Increase

* Board approves increase in regular quarterly dividend to $0.10, up from $0.02 per share

Outlook:

* Record grain prices and robust worldwide demand for fertilizer point to strong spring season

* Company's forward bookings substantially higher than levels a year ago

CF Industries Holdings, Inc. (NYSE: CF) today reported net earnings of $135.4 million, or $2.38 per diluted share, for the fourth quarter of 2007. The earnings, highest for any quarter since the company's August 2005 Initial Public Offering (IPO), compare to net earnings of $8.0 million, or $0.14 per diluted share, in 2006's fourth quarter.

Net sales totaled nearly $852.5 million for the quarter, a 62 percent increase compared to the year-earlier quarter and also the highest ever for any quarter since the IPO. Gross margin increased more than five-fold from the fourth quarter 2006 level to $236.0 million.

"I'm extremely pleased by the results we delivered for both the fourth quarter and the year. Strong domestic and international grain markets have produced exceptionally high global demand for fertilizer. Tightness in this demand-driven market pushed fertilizer prices sharply higher for all of our products. In this environment, effective execution of our operating and sales plans delivered our best-ever public company sales and earnings performance," commented Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc.

"The weather cooperated perfectly during the fall season, and the combination of good levels of fall fertilizer application and normal customer inventory stocking...

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