DOW JONES NEWSWIRES Mosaic Co. (MOS) plans to reduce its production of phosphates by as much as 250,000 tons over the next three months amid weakened demand and spot prices. "The current spot prices in this market do not reflect our outlook for the business, nor do we think they are sustainable," President and Chief Executive Jim Prokopanko said Wednesday. The company, however, still sees its fiscal second-quarter volume and pricing within its September guidance for both phosphate and potash. The fertilizer producer has been reporting strong results for several quarters, helped by growing worldwide demand for food, which has mostly widened its margins as higher selling prices had been outpacing rising input costs. However, in recent months spot-market prices have been tumbling as buyers have been delaying purchases and destocking inventories. On Wednesday, Prokopanko said Mosaic also continues "to expect an above average application season in North America" as well as record global demand for phosphate and potash next year. Mosaic in September reported that its fiscal first-quarter profit jumped 77% on rising prices and volumes for phosphates and potash, with demand for crop nutrients expected to remain strong. The company plans to release its fiscal second-quarter financial results on Jan. 4. Shares closed Wednesday at $50.29, down 3.9%, and were inactive in after-hours trading. The stock is down by 34% this year. -By Tess Stynes, Dow Jones Newswires; 212-416-2481; Tess.Stynes@dowjones.com
