09 October 2007 15:06 [Source: ICIS news]
MUMBAI (ICIS news)--US fertilizer company Mosaic reported a 241.6% year-on-year rise in its operating profit for the first quarter ended 31 August at $449.6m (€319.2m) on Tuesday due to higher selling prices for phosphates and potash, and an increase in volumes in the potash business.
The company's net sales increased 55% to $2bn from a year-ago, while its net earnings were 180% higher at $305.5m.
"Strong cash flow has allowed us to prepay $700m of long-term debt over the last five months, and we expect to make additional pre-payments in coming months. This will move us closer to our goal of achieving investment grade status," Jim Prokopanko, president and CEO of Mosaic said.
In the phosphate segment, the company’s operating earnings were up 274.2% to $310.2m, and net sales rose 50% to $1.18bn.
The increase in gross margin was primarily due to the sharp increases in fertilizer prices, partially offset by higher costs for ammonia and sulphur, and higher mining and concentrates production costs, said Mosaic.
In the potash segment, operating earnings were 81.3% higher at $110.2m, and net sales rose 42% to $411.8m.
($1 = €0.71)
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