CF Industries Down 2.5% Despite Better Than Expecgted Earnings (CF)

CF Industries Holdings, Inc. CF shares are down 2.5% in extended hours, despite beating earnings estimates. The company reported earnings of $2.78 $CF - Q4 EPS $2.78 per share on revenues of $2.4 billion. Wall Street was looking for earnings of $2.61 per share on revenues of $2 billion. “In the fourth quarter, we benefited from the increased capability of our expanded platform and a host of favorable external factors,” commented Stephen R. Wilson, chairman and chief executive officer, CF Industries Holdings, Inc. “Fall application of ammonia and phosphates was particularly strong because of increased expected crop plantings, higher application rates, high crop prices, an early harvest and favorable weather in the U.S. Midwest,” Wilson noted. Fertilizer markets are expected to remain strong through the spring season, with high crop prices continuing to set the tone. CF Industries expects 92 million acres of corn to be planted this spring, up nearly 4 million acres from spring of 2010 due to high expected farm profitability and a low stocks-to-use ratio. Across the primary crops, the company expects U.S. farmed area to increase by about 10 million acres, returning to 2008 levels. “We believe all the factors are in place to make 2011 a great year for CF Industries,” said Wilson. “In addition to a more complete realization of the extremely favorable fertilizer market conditions we are experiencing now, we will have the added benefit of a full year of acquisition synergies and operational integration of our expanded platform.”