Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q2 2011 Earnings Presentation
12 slides from Cf Industries's earnings presentation, Aug 5, 2011
Slide 1: 2011 Second Quarter Financial Results
Corporate Development Supply Chain Sales Finance Legal Operations Human Resources Dv Sc Sa Fi Le Op Hr CF Industries NYSE: CF 2011 Second Quarter Financial Results August 5, 2011
Slide 2: Forward-Looking Statements
Certain statements contained in this communication may constitute "forward-looking statements." All statements in this communication, other than those relating to historical information or current condition, are forward-looking statements. These forward-looking statements are subject to a number of
Slide 3: Financial Highlights
Financial Highlights In millions, except percentages and EPS 2011 Q2 2010 Q2 Net sales $ 1,802 $ 1,308 Gross margin 867 397 - As percent of sales 48% 30% Net earnings attributable to common stockholders $ 487 $ 105 Earnings per diluted share 6.75 1.54 Cash flow provided by operations 251 (2) Net deb
Slide 4: Record Profits and Cash Flow
Record Profits and Cash Flow Any-quarter record Second quarter record 2006 2007 2008 2009 2010 2011 Earnings per Share Operating Cash Flow (millions)
Slide 5: Nitrogen Segment Results
Nitrogen Segment Results Source: Green Markets 2009 2010 2011 In millions, except as noted 2011 Q2 H/(L) 2010 Q2 H/(L) 2011 Q1 Sales $ 1,505 $ 382 $ 579 Gross margin 783 415 340 - Percent 52% 19 pts 4 pts Volume (000 st) 3,774 (158) 933 Average selling prices ($/st) - Ammonia $ 596 $ 216 $ 102 - Ure
Slide 6: Phosphate Segment Results
Phosphate Segment Results Source: Green Markets In millions, except as noted 2011 Q2 H/(L) 2010 Q2 H/(L) 2011 Q1 Sales $ 297 $ 112 $ 49 Gross margin 85 56 2 - Percent 29% 13 pts (5) pts Volume (000 st) 538 79 98 - DAP 382 27 51 - MAP 156 52 47 - Domestic 298 81 (96) - Export 240 (2) 194 Average sell
Slide 7: EBITDA and Selected Items
EBITDA and Selected Items (in millions; includes Terra results from Apr. 5, 2010) Quarter ended June 30, Six Months ended June 30, 2011 2010 2011 2010 Net earnings attributable to common stockholders $ 487.4 $ 105.1 $ 769.4 $ 100.7 Interest expense (income) – net 29.9 111.5 81.7 111.6 Income taxes 2
Slide 8: Second Quarter Accomplishments
Second Quarter Accomplishments Delivered strong earnings and cash flow Any-quarter record sales, net earnings and EPS Second quarter record cash flow from operations Overcame daunting weather-related challenges Delayed planting drove product mix change Drought in southern plains changed geographic d
Slide 9: Reduction in Net Debt
Reduction in Net Debt Millions Net debt declined by $929 million during 1H 2011 See slide 12 for reconciliation of net debt
Slide 10: Capital Deployment
Capital Deployment Quadrupling of regular quarterly dividend to $0.40 Major project investment of $1.0 to $1.5 billion over the next four years Debottlenecking Increased upgrading of ammonia Expenditure of up to $1.5 billion to repurchase shares through December 31, 2013
Slide 11: Outlook/Summary
Outlook/Summary Sustained high crop prices and plantings High farm income to facilitate fall purchases of crop inputs Tight global fertilizer supply/demand balance underpins high prices through 2011 Significant unmet N and P import requirements for India Diminished N and P export availability from C
Slide 12: Non-GAAP Information
Non-GAAP Information Net debt (net cash) is defined as total debt minus cash, cash equivalents and short-term investments, plus customer advances. We include customer advances in this calculation to reflect the liability associated with our obligations to supply fertilizer in the future, which offse
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