Yara International has reported second-quarter net income of NOK1.12 billion, as compared to NOK4.35 billion last year. Excluding net foreign exchange gains and special items, the result was approximately NOK1.19 per share compared to NOK12.44 per share in the second quarter of 2008.
The company said that second-quarter fertilizer deliveries were down 13% on last year, but up 7% on first quarter this year. Fertilizer volumes in stock were reduced by 30% through the quarter as sales picked up and production was curtailed, giving a net cash flow from operating activities of NOK4.27 billion.
Jorgen Ole Haslestad, president and CEO of Yara, said: In a challenging quarter, Yara generated a strong cash flow once more by competing well for deliveries and increasing its European market share, cutting production and thereby reducing inventories further. Sales volumes including third-party sourced products were below last year, but sales of Yara produced products were up 4%. The new season nitrate prices kick-started deliveries in Europe where June volumes came in 25% above last year.
Global fertilizer consumption is estimated to have declined more than 5% the last season. This will have a negative effect on grain production in a situation where global grain inventories remain at low levels, and will support future demand for fertilizer, he added.
Yara is a chemical company that converts energy, natural minerals and nitrogen from the air into essential products for farmers and industrial customers.