Mosaic posts flat fiscal 2Q profit
PLYMOUTH, Minn. (AP) — Mosaic Co. said Friday that its fiscal second-quarter net income was flat, hurt by lower phosphate and potash fertilizer volumes.
The Plymouth, Minn.-based company said it saw strong demand in North and South America, while its international shipments of phosphates were hurt by drawn out contract negotiations in India and China.
Mosaic said domestic demand for phosphates is strong, while its international customers continue to delay their purchases in hopes of getting better prices.
Mosaic shares rose 23 cents to $57 in premarket trading. Its shares peaked for the past year at $61.98 in early September. They fell as low as $44.43 in early June.
For the quarter ended Nov. 30, Mosaic said it earned $628.8 million, or $1.47 per share, up from $623.6 million, or $1.40 per share, in the same quarter last year.
The recent quarter's results included a gain of $179 million, or 42 cents per share, related to a decrease in the amount of unrecognized tax benefits. Excluding that, the company posted adjusted earnings of $1.05 per share.
Revenue fell 16 percent to $2.54 billion from $3.01 billion, pulled down by the lower volumes along with a drop in phosphate prices.
Analysts, on average, expected adjusted earnings of 94 cents per share on $2.57 billion in revenue, according to a FactSet poll.
Phosphate sales fell 19 percent to $1.8 billion, while potash sales dropped 7 percent to $780 million.
The company currently expects full-year global phosphate shipments to rise between 2 and 3 percent to 53 million to 65 million tons, while potash shipments are expected to total between 55 million and 57 million tons.