Mosaic Q4 Profit Declines As Sales Fall Amid Lower Prices - Update

(RTTNews) - Agricultural nutrients maker Mosaic Co. (MOS) Tuesday said fourth-quarter profit declined from the prior year, as sales dropped and prices fell amid a compressed North American spring planting season.

Jim Prokopanko, President and CEO of Mosaic, said, "Mosaic delivered outstanding results despite difficult external factors such as the late and compressed North American spring planting season, and additional logistical challenges."

Net earnings attributable to the company fell to $485.9 million from $507.3 million a year ago. Earnings per share dropped to $1.14 from $1.19 in the prior year.

Operating earnings declined, as record potash and strong phosphate sales volumes were more than offset by lower realized prices.

Mosaic's net sales in the quarter dropped to $2.69 billion from $2.82 billion last year. On average, five analysts polled by Thomson Reuters expected revenues of $2.54 billion for the quarter.

Net sales in the Potash segment was flat with last year at $1.0 billion, as record shipment volumes were offset by lower realized prices.

Sales dropped 7 percent in the Phosphates segment to $1.7 billion, primarily driven by lower finished product prices.

Reflecting the change from fiscal to calendar year end, Mosaic sees total sales volumes for the Potash segment in the range of 1.8 to 2.1 million tonnes for the third calendar quarter of 2013, compared to 1.8 million tonnes last year.

Total sales volumes for the Phosphates segment are expected to range from 2.9 to 3.3 million tonnes, compared to 2.9 million tonnes last year.

According to Prokopanko, ''The long-term outlook for Mosaic remains compelling, and we are executing well to capture the opportunity.''

MOS closed at $56.13 on Monday.