US Mosaic Q2 earnings rise 37% year on year

04 January 2012 23:03  [Source: ICIS news]

HOUSTON (ICIS)--US-based fertilizer maker Mosaic reported on Wednesday second quarter fiscal 2012 net earnings of $624m (€480m), an increase of 37% from the same period a year earlier.

For the quarter ended 31 December, Mosaic reported net sales of $3bn, an 11% increase from $2.7bn in the same period a year earlier.

The increased sales were driven by improved pricing that was partially offset by lower volumes, the company said.

"Potash segment operating earnings grew 42% compared to the second quarter last year," said Mosaic Chief Executive Jim Prokopanko.

Net sales in the potash segment totalled $839m for the second quarter, up 20% compared with $699m a year ago.

Potash production was 1.8m tonnes, or 78% of operational capacity, an increase from 1.7m tonnes, or 74% of operational capacity, a year ago.

"While the seasonal lull has recently slowed potash sales, we expect record global shipments in 2012 and project a strong spring application season," Prokopanko said.

Mosaic's net sales in the phosphates segment were $2.2bn for the second quarter, up from $2.0bn last year.

Last week, Mosaic announced a 250,000 tonne curtailment of phosphate production over the next three months because of weak buyer sentiment affecting near-term demand.

"Longer-term, we believe the phosphate market provides Mosaic with significant opportunities. Underlying agriculture fundamentals are strong and we expect 2012 global phosphate demand to set yet another record," said Prokopanko.

Mosaic said total sales volumes of potash are expected to range from 1.2m-1.5m tonnes in the third quarter of fiscal 2012. Phosphate sales volumes are expected to range from 2.2m -2.6m tonnes in the third quarter.

($1 = €0.77)

By: Frank Zaworski
+1 713 525 2653

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