02 October 2012 13:04 [Source: ICIS news]
LONDON (ICIS)--Mosaic’s fiscal 2013 first-quarter net profit fell 18% year on year to $429.4m (€334.9m) primarily driven by lower phosphate volumes and prices, the US-based fertilizer firm said on Tuesday.
Mosaic’s sales for the three months ended 31 August were $2.51bn, down from $3.08bn in the same period last year.
"The phosphate market continues to be tight, with low producer inventories and supply uncertainties," CEO Jim Prokopanko said.
"During the quarter our production was impacted by longer annual maintenance shut-downs and challenges posed by hurricanes, and our sales were further impacted by low beginning inventories and low Mississippi River levels. As a result, demand for our products outpaced our ability to produce and deliver; we expect better execution in the quarters ahead,” he added.
Mosaic's gross margin for the first quarter of fiscal 2013 was $747.3m, or 30% of net sales, compared with $848.2m, or 28% of net sales, in the same period last year, while first-quarter operating earnings were $610.2m, down 16% year on year. The company said the decreases in gross margin and operating earnings were primarily driven by lower phosphate net sales.
Going forward, Mosaic expects a good fiscal 2013. Prokopanko said: "The long-term outlook for crop nutrition is outstanding, and Mosaic is well positioned as the world's largest potash and phosphates producer".
($1 = €0.78)
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