Message #5 From:
NewsBot Date: September 11, 2006 06:00:00 AM
ITRO News AXcess News: Ag Stocks Mixed as Energy Prices Fall
HOUSTON--(BUSINESS WIRE)--Sept. 11, 2006--Ag stocks were mixed in the current period, partially due to gyrating energy prices which affected fertilizer manufacturers most.
Cargill Inc., the largest U.S. agricultural company, said earnings fell 27 per cent in the fourth quarter because of costs related to restructuring phosphate-fertilizer assets.
The drop was attributed to a $190 million noncash charge that was the company's share of a restructuring charge taken by The Mosaic Co. related to its phosphate fertilizer business.
In contrast to Cargil's results, Sinochem Hong Kong Holdings, China's largest fertilizer distributor, on Friday reported a 19.4% increase in net profit for the first half of this year, and basic earnings per share increased by 11%.
In Canada, potash fertilizer maker, Migao Corp. reported 3rd quarter earnings of $2 million, or $0.08 per share. Net income for the nine months ended June 30, 2006 was $6.6 million, or $0.31 per share, as compared to $1.1 million for the same period last year.
Last week, Migao received certification as one of Canada's top producers, announcing orders for 140,000 tonnes.
Reno, Nevada-based Itronics Inc. (OTCBB: ITRO) reported last week that GOLD'n GRO fertilizer sales for the first two months of the third quarter were up 89 percent compared to the same two months last year.
In mid-August, Itronics reported a 45 percent increase in sales and a 13 times increase in gross operating profit for the second-quarter.
Unlike its peers outlined above, Itronics manufactures environmentally friendly fertilizers made from recycled photochemicals whose products are becoming more widely used by cotton growers and other commercial crops, which accounts for its increased sales. But its appeal is because its fertilizer is an alternative to more costly products and by comparison, stretches farmers' operating budgets while increasing yields, a strong factor in today's agricultural field.
While energy costs have come down in the last two weeks, for many farmers, finding ways to stretch their operating budget is becoming more difficult, which could push the price of food higher, according to the Pinney-Purdue Agricultural Center in Washington Township in Indiana.
An estimated 350 farmers, chemical applicants and business people from 10 area counties took part in a series of programs aimed at helping boost crop production in Indiana.
Regulations too are squeezing both farmers and fertilizer makers as it becomes more difficult to even use traditional fertilizers that contain environmentally harmful substances.
In Ottawa County, Michigan County Commissioners there have proposed a ban on fertilizers that contain phosphorus, or phosphate, by amending the County's environmental health regulations. While the ban only applies to lawn fertilizers containing phosphorus, critics say it's only a matter of time before farmers face similar restrictions.
