28 March 2012 22:50 [Source: ICIS news]
HOUSTON (ICIS)--US fertilizer major Mosaic on Wednesday reported third-quarter fiscal 2012 net earnings of $273m (€205m), a decrease of 50% from the $542m it reported in the same quarter of fiscal 2011.
The decline in net earnings for the quarter that ended on 29 February was primarily driven by lower potash volumes and higher phosphate raw-material costs, the company said in its earnings statement."We are continuing to make significant strategic progress for long-term success even as we work through seasonal and cyclical market factors," Mosaic chief executive Jim Prokopanko said. "Mosaic’s potash expansion initiative remains on track and on budget as we bring several major projects to completion this year."
Operating earnings for the quarter were $414m, down 46% from $771m in the same quarter a year earlier.
Mosaic said it reached two agreements during the quarter that resolved matters of concern to shareholders.
The company ended a tolling dispute with PotashCorp with an agreement that will result in 1.3m tonnes of additional potash capacity in 2013.
It also reached a settlement in Florida District Court that allowed it to return to full operation at its South Fort Meade phosphate mine.
Net sales in Mosaic’s potash division totalled $553m for the quarter, down from $758m a year earlier, with potash production in the quarter at 1.8m tonnes, down from 2m tonnes a year before.
However, phosphate sales totalled $1.7bn in the quarter, up from $1.5bn last year, on sales of 2m tonnes of finished phosphates.
($1 = €0.75)
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