Fertilizer Maker Mosaic Swings to a Loss
August 02 2016 - 9:43AM
Dow Jones News
By Brittney Laryea
Fertilizer maker Mosaic Co. swung to a loss in its latest
quarter, as its top line fell sharply, hurt by lower prices and
volumes.
Mosaic stock fell 2.4% premarket to $26.63. Shares have lost 38%
of their value over the past 12 months through Monday's close.
"We are taking the necessary actions to ensure Mosaic remains
competitive across all points of the business cycle," said Chief
Executive Joc O'Rourke.
The company faces a challenging environment, but it is
optimistic about the second half of the year and sees signs of
stabilization "with fertilizer prices bottoming and solid demand
for our products," Mr. O'Rourke said.
He said the company is preserving its cash and trying to cut
back on operating expenses to further help its bottom line. Mosaic
had $1.1 billion in cash and $3.8 billion in long-term debt as of
the quarter's end.
For the quarter ended June 30, the company posted a loss $10.2
million, or 3 cents a share, compared with a profit of $390.6
million, or $1.08 a share, a year earlier.
Overall, sales fell 32% to $1.7 billion, reflecting lower potash
and phosphate prices and lower sales volumes.
Mosaic missed the expectations of analysts polled by Thomson
Reuters, who had forecast 12 cents in per-share earnings on $1.74
billion in revenue.
The fertilizer company's phosphate segment reported $976 million
in sales, a fall from $1.4 billion a year ago. Its sales in potash,
a potassium-based fertilizer, also fell to $457 million from $730
million a year ago, weighed down by lower average realized prices
and lower sales volumes. Mosiac said signing delays in India and
China also hurt its buying activity and prices.
The international distribution segment saw $534 million in
second-quarter sales, down from $637 million a year earlier.
Average selling price was $374 per ton compared with $427 per ton a
year ago.
Write to Brittney Laryea at brittney.laryea@wsj.com
(END) Dow Jones Newswires
August 02, 2016 09:28 ET (13:28 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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