Mosaic Lowers Q3 Volume, Price Guidance For Potash And Phosphates

(RTTNews) - Mosaic Co. (MOS) on Monday announced an update of the near-term price, volume and gross margin guidance, as well as the company's effective tax rate guidance for the seven month transition period.

The company said the domestic and international crop nutrient markets have softened since its announced its calendar third quarter guidance on July 16, in part due to the distributors' cautiousness caused by the Belarusian Potash Company break-up.

In Potash, the company lowered its third calendar quarter 2013 volume guidance to a range of 1.45 to 1.65 million tonnes from its prior guidance of 1.8 to 2.1 million tonnes, reflecting lower near-term demand. The company's realized price expectations are now in the range of $330 to $340 per tonne, net of transportation and other distribution costs, compared to its prior expectations of $330 to $360 per tonne. The Potash gross margin rate for the third calendar quarter is now expected to be in the low to mid 30% range, compared to the company's prior guidance of mid to high 30% range.

In Phosphates, the company has lowered third calendar quarter 2013 volume guidance to 2.6 to 2.8 million tonnes from its prior guidance of.2.9 to 3.3 million tonnes Also, third quarter realized prices are now expected to be in the range of $430 to $440 per tonne, net of transportation and other distribution costs, compared to prior expectations of $430 to $465 per tonne. The third quarter Phosphates gross margin percentage rate is expected to be in the mid-teens.