Mosaic Announces Production Cut; Revises Q3 Guidance

(RTTNews) - Mosaic Co. (MOS) said Monday that it will reduce production in its Potash business by extending maintenance downtime at its Colonsay mine, and maintain planned slower production in its Phosphates business in response to current crop nutrient market conditions, mainly related to delayed fertilizer purchases in Brazil and North America.

In light of current market sentiment, volumes are lower than expected, and prices have weakened, the company said. Mosaic expects its reduced production to impact per unit costs and segment margins.

As a result, the company now expects third quarter Phosphate volumes to be at the low end of prior guidance of 2.1 to 2.4 million tonnes. The average DAP selling price is expected to be in the upper half of the company's previously provided range of $435 to $455 per tonne.

The company now expects third quarter Potash volumes to be in the bottom half of its previous guidance of 1.6 to 2.0 million tonnes. The MOP average selling price is expected to be in the bottom half of the previously announced range of $260 to $280 per tonne.