2007 Net Sales

36% of total

2007 Gross Margin

28% of total

Where it comes from

Nitrogen comes from the air (78% of the air we breathe is nitrogen). Ammonia is synthesized from the air using steam and natural gas into forms used by plants and industry.

Applications

Fertilizer A basic building block for proteins and enzymes in all living cells; speeds growth of plant roots, stalks and vines and improves yield and quality

Feed supplements Essential to RNA, DNA and cell maturation

Industrial Used in plastics, resins and adhesives

Competitive Strengths

• Almost two-thirds of our ammonia production is in Trinidad, where we enjoy long-term, lower-cost natural gas contracts
• Proximity of Trinidad production to US, the world’s largest nitrogen importer
• 80% of US-produced ammonia is sold to stable industrial customer base
• Hedging program mitigates natural gas price risk related to US production

Strategies

• Capitalize on our Trinidad production with its advantageous natural gas costs
• Maximize stable US industrial sales