Mosaic Earnings Hit by Production, Export Issues

Commodities & Metals

Published: April 30, 2015 7:25 am

Last Updated: April 28, 2020 2:11 am

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

The Mosaic Co. (NYSE: MOS) reported first-quarter 2015 results before markets opened Thursday. The fertilizer maker reported diluted earnings per share (EPS) of $0.70 on revenues of $2.1 billion. In the same period a year ago, Mosaic reported EPS of $0.54 on revenue of $2 billion. First-quarter results also compare to the FactSet consensus estimate for EPS of $0.74.

The EPS figure does not include non-recurring items that added $0.10 per share to the adjusted total. A gain of $0.09 per share was due to foreign currency exchange, while an $0.08 per share loss on derivatives was offset by an $0.08 per share gain on tax items. Other items netted out to a gain of $0.01.

Pricing for the company’s phosphate products averaged $458 per metric ton (tonne), at the high end of Mosaic’s guidance for pricing of $450 to $460 per tonne. Sales volume totaled 2.3 million tonnes, again at the high end of the forecast range. Production was lower than expected, and the company sees strong global demand and lower raw material cost for its phosphates products. The phosphate segment of the company’s business boosted revenues from $959 million a year ago to $1.2 billion in the first quarter.

ALSO READ: The States With the Most McDonald’s

The company’s potash business posted sales volumes of 2 million tonnes, at the low end of Mosaic’s forecast. The average selling price was $288 per tonne, toward the high end of the expected range of $270 to $295 per tonne. Net sales of potash products totaled $653 million in the quarter, down from $733 million a year ago, primarily due to lower export volumes related to a contract with buyers in China.

The company guided phosphate sales volumes in a range of 2.3 million to 2.7 million tonnes in the second quarter, up from 2.6 million tonnes sold a year ago. The realized price is forecast at $425 to $450 a tonne, and gross margin is forecast at around 20%. Potash volumes are forecast at 2.0 million to 2.4 million tonnes, and the forecast selling price is a range of $265 to $290 per tonne. Gross margin on potash products is expected to be around 30%.

The company’s CEO said:

The last twelve months have been transformational for Mosaic. We grew and rebalanced our business portfolio, optimized our balance sheet, and worked to assure Mosaic remains a low-cost producer. … We have invested for growth, and we are growing. … We continue to watch grain and oilseed prices, but we are optimistic about Mosaic’s future and our ability to generate attractive returns for our shareholders.

Shares closed at $44.03 on Wednesday night and were inactive in premarket trading Thursday. The stock’s 52-week range is $40.32 to $53.83.

ALSO READ: 9 States Running Out of Water

Credit Card Companies Are Doing Something Nuts

Credit card companies are at war. The biggest issuers are handing out free rewards and benefits to win the best customers.

It’s possible to find cards paying unlimited 1.5%, 2%, and even more today. That’s free money for qualified borrowers, and the type of thing that would be crazy to pass up. Those rewards can add up to thousands of dollars every year in free money, and include other benefits as well.

We’ve assembled some of the best credit cards for users today. Don’t miss these offers because they won’t be this good forever.

Flywheel Publishing has partnered with CardRatings for our coverage of credit card products. Flywheel Publishing and CardRatings may receive a commission from card issuers.