Heffer also reminded that there are still some uncertainties in the current market that may affect the consumption of fertilizers in the future, such as instability in the financial system and the economic downturn continues, which will affect consumer confidence in consumers and thus affect market demand.
Related companies announced the third quarter earnings. Tracy Industries, the US fertilizer manufacturer, realized a net profit of 46 million U.S. dollars in the third quarter, down 72% year-on-year; sales revenue fell 56% year-on-year to US$347 million. The company said that the main reason for the sharp fall in profit in the third quarter was the impact of the global financial crisis and the weak demand for nitrogen for agriculture and industry.
Compass Minerals (CMP) of the United States achieved a net profit of US$25.7 million in the third quarter, a year-on-year decrease of 10%; sales revenue decreased by 23% year-on-year to US$182.3 million. The operating profit of the company's specialty fertilizer business fell by 72% year-on-year to US$11.6 million, and sales revenue fell 67% year-on-year to US$23.9 million. According to CMP, the decline in sales income and profitability of the specialty fertilizer business was mainly due to the decrease in the average price of product sales, while the sales volume of products decreased by 65% ​​year-on-year.
Potash Corp’s third-quarter net profit fell 79% year-on-year to US$249 million; sales revenue fell 64% year-on-year to US$1.1 billion. The company said that the sharp decline in the company's performance in the third quarter reflects that the continued cautiousness of global fertilizer buyers has had a negative impact on the sales and prices of the three major fertilizers. In the quarter, the company's sales price of potash fell 34% year-on-year, and nitrogen fertilizer prices fell 63% year-on-year.
US fertilizer manufacturer CF Industrial achieved a net profit of $38.5 million in the third quarter, a decrease of 18% compared to the same period of last year; net sales revenue fell sharply by 58% year-on-year to US$430.01 million. The decline in performance was mainly due to the sharp fall in the prices of all fertilizer products compared to the third quarter of last year. Stephen Wilson, chairman and CEO of CF Industries, said: “Domestic dealers and retailers are still reluctant to establish inventory because they are afraid to suffer again from inventory impairment caused by falling product prices in the fourth quarter of last year.â€
Global fertilizer producer earnings continue to slump
Due to the dual impact of weak market demand and sharp price drop, the profits of global fertilizer manufacturers fell sharply in the third quarter. Patrick Heffer, head of the International Fertilizer Industry Association, said at the Global Fertilizer and Agriculture Conference recently held that from 2009 to 2010, the global fertilizer consumption growth rate will slow to 3.6%, compared with the previously expected 6% increase. There is a substantial decrease in speed. From this year to next year, the growth rate of global nitrogen fertilizer consumption is expected to be 2.5%, the growth rate of phosphate fertilizer is estimated to be 5.9%, and the growth rate of potash fertilizer is expected to be 3.3%.