Cf Industries Holdings, Inc. · NYSE:CF
Cf Industries — Q2 2012 Earnings Presentation
12 slides from Cf Industries's earnings presentation, Aug 7, 2012
Slide 1: 2012 Second Quarter Financial Results
2012 Second Quarter Financial Results August 7, 2012 NYSE: CF
Slide 2: Forward-Looking Statements
All statements in this presentation, other than those relating to historical facts, are “forward-looking statements”. These forward-looking statements are not guarantees of future performance and are subject to a number of assumptions, risks and uncertainties, many of which are beyond our control, w
Slide 3: Second Quarter Accomplishments
Second Quarter Accomplishments Delivered strong earnings and cash flow Record EBITDA, net earnings and EPS Spent $500 million for share repurchases Acquired 3.1 million shares at an average price of $163.89 Completed repurchases under the August 2011 program Production and distribution assets perfor
Slide 4: Q2 Financial Highlights
Q2 Financial Highlights In millions, except percentages and EPS 2012 Q2 2011 Q2 Net sales $ 1,736 $ 1,802 Gross margin 1,043 867 - As percent of sales 60% 48% EBITDA(1) $ 1,054 $ 889 Net earnings attributable to common stockholders 606 487 Earnings per diluted share 9.31 6.75 Cash flow provided by o
Slide 5: Profit and Cash Flow
Profit and Cash Flow 2007 2008 2009 2010 2011 2012 Earnings per Share Operating Cash Flow (millions) 5 Record EPS
Slide 6: Q2 Nitrogen Segment Results
Q2 Nitrogen Segment Results Graph source: Green Markets In millions, except as noted 2012 Q2 H/(L) 2011 Q2 H/(L) 2012 Q1 Sales $ 1,504 $ (1) $ 232 Gross margin 993 210 331 - Percent 66% 14 pts 14 pts Volume (000 st) 3,532 (242) 331 Average selling prices ($/st) - Ammonia $ 635 $ 39 $ 37 - Urea 522 1
Slide 7: Q2 Phosphate Segment Results
Graph source: Green Markets In millions, except as noted 2012 Q2 H/(L) 2011 Q2 H/(L) 2012 Q1 Sales $ 232 $ (65) $ (24) Gross margin 50 (34) 1 - Percent 22% (7) pts 2 pts Volume (000 st) 493 (45) (23) - DAP 368 (14) (56) - MAP 125 (31) 33 - Domestic 202 (96) (123) - Export 291 51 100 Average selling
Slide 8: YTD Financial Highlights
YTD Financial Highlights In millions, except percentages and EPS YTD 2012 YTD 2011 Net sales $ 3,263 $ 2,976 Gross margin 1,755 1,392 - As percent of sales 54% 47% EBITDA(1) $ 1,756 $ 1,474 Net earnings attributable to common stockholders 975 769 Earnings per diluted share 14.81 10.66 Cash flow prov
Slide 9: YTD Segment Results
YTD Segment Results In millions, except as noted YTD 2012 H/(L) YTD 2011 Sales $ 2,776 $ 345 Gross margin 1,655 430 - Percent 60% 9 pts Volume (000 st) 6,733 118 Average selling prices ($/st) - Ammonia $ 618 $ 52 - Urea 490 109 - UAN 314 13 - AN 258 2 Gas cost $/MMBtu $ 3.31 $ (1.01) 9 In millions,
Slide 10: Supplemental Information
Supplemental Information 10 U.S. Corn Fertilizer Cost as % of Farm Revenue (Dollars per Acre) Source: USDA, Green Markets, CF, Various Ten-Year Average = 19% World Grains & Soybeans Stocks-to-Use Ratio (Percent of Use) Source: USDA U.S. Corn Stocks-to-Use Ratio Source: USDA through 2011, CF 2012F U.
Slide 11: Outlook/Summary
Outlook/Summary Tight grain stocks and sustained high crop prices Strong 2012/2013 global planting expectations Significant demand for nitrogen and phosphate nutrients Tight global fertilizer supply/demand balance Unmet N and P import requirements for India 11 CF Industries is positioned to benefit
Slide 12: EBITDA and Selected Items
EBITDA and Selected Items 12 (in millions) Quarter ended June 30, Six months ended June 30, 2012 2011 2012 2011 Net earnings attributable to common stockholders $ 606.3 $ 487.4 $ 974.7 $ 769.4 Interest expense (income) – net 45.3 29.9 75.8 81.7 Income taxes 309.1 281.2 516.1 440.3 Depreciation, depl
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