By Angela Chen
Fertilizer firm Mosaic Co. said its earnings increased in the
June quarter thanks to higher sales of phosphates, which now
account for more than half of the company's operating earnings.
Chief Executive Jim Prokopanko had said earlier that the company
is benefiting from cost-cutting and from recent acquisitions, such
as its agreement to buy Archer Daniels Midland's
fertilizer-distribution business in Brazil and Paraguay.
Integration of the deal is largely completed.
James O'Rourke, Mosaic's chief operating officer, will become
president and CEO on Wednesday. Mr. Prokopanko will remain in an
advisory role until his planned retirement next January.
Overall, Mosaic posted earnings of $391 million, or $1.08 a
share, up from $248 million, or 64 cents a share, a year
earlier.
Sales increased to $2.49 billion from $2.44 billion.
Analysts polled by Thomson Reuters had projected a profit of 89
cents a share and revenue of $2.5 billion.
Net sales of phosphates were $1.4 billion up from $1.3 billion
the year before.
Mr. Prokopanko said that the phosphates business is driving
earnings. "In fact, during the second quarter and year-to-date the
business accounted for half of Mosaic's operating earnings," he
added. "As we look ahead, strong global demand and relatively
stable raw material costs bode well for our phosphates
business."
Sales volumes in the phosphates' segment was 2.8 million tonnes,
up from 2.6 million tonnes in the prior-year period.
Potash net sales, meanwhile, were $730 million, down from $762
million a year earlier, on lower sales volume though partially
offset by higher average prices. Sales volume was 2.3 million
tonnes, compared with 2.5 million tonnes a year ago.
Shares of Mosaic, inactive premarket, have been down about 6%
this year through Monday's close.
Write to Angela Chen at angela.chen@wsj.com
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