Message #3 From:
NewsBot Date: July 13, 2006 02:23:00 PM
ITRO News AXcess News: Ag Stocks Weigh in Against Higher Energy Costs
RENO, Nev.--(BUSINESS WIRE)--July 13, 2006--Crude oil broke its old record Thursday, breaking through the $77 per barrel barrier, but in looking back on the second quarter, many ag-related fertilizer manufacturers have seen their sales decline while one Reno-based enviro-ag supplier saw sales climb most due to higher energy costs.
Tuesday, Itronics Inc. (OTCBB: ITRO) reported a 46 percent increase in sales of its GOLD'n GRO liquid fertilizer in the second quarter. The Reno-based enviro-ag company manufactures its bulk fertilizer from recycled photochemicals that besides its alternative environmentally friendly angle is actually cheaper to apply than fertilizers manufactured from natural gas or oil.
Bodisen Biotech Inc., the China-based environmentally friendly fertilizer manufacturer, reported Monday that it expects record revenue and net income for the second quarter. Estimates were not released. The company expects to report second-quarter financial results in early August.
UAP Holding Corp., the largest independent distributor of agricultural and non-crop inputs in the United States and Canada, reported first quarter sales of chemical fertilizers declined, which UAP attributed to higher costs that affected customers' buying decisions.
Terra Industries Inc., a manufacturer of nitrogen-based fertilizers, is expected to announce second-quarter results shortly. Terra's results have been declining this year with first-quarter sales down nearly 20 percent over the fourth quarter of last year. Both periods showed a loss with the first quarter of this year nearly double the prior period. In May, Terra reported an explosion at a nitrogen fertilizer plant it operates in the United Kingdom.
Agrium Inc., a competitor to Terra, slashed its second-quarter earnings outlook last month. Citing lower fertilizer sales, Agrium cut its second-quarter earnings forecast on lower than expected wholesale sales volumes for U.S. nitrogen and international potash.
The Calgary-based company added that its retail division was also hurt to a lesser extent due to lower overall U.S. fertilizer demand.
Jim Byrum, president of the Michigan Agri-Business Association in Lansing, was quoted Wednesday in the Detroit News as saying that most farmers who used ammonium nitrate have switched to other nitrogen sources, or cut back on applications due to higher costs.
The price of ammonium nitrate has more than tripled to about $300 a ton from about $90 a ton over about the last six years. Some of the increases are due to increased handling costs related to terrorism concerns and others are due to more expensive natural gas, which drives up the cost of all nitrogen-based fertilizers.
"Many companies have stopped handling ammonium nitrate altogether," said Byrum.
Note to Editors: AXcess News' "News Features" are stories provided to publishers copyright-free for print or online display at no charge. All we ask is that publishers include our byline (AXcess News) as the source and a link to our Web site: http://www.axcessnews.com. If you are interested in displaying our news on a regular basis, please contact our editorial department at: 775-841-5368.
