Mosaic Q4 Profit Down - Update

(RTTNews) - US fertilizer giant Mosaic Co. (MOS), Tuesday said its profit for the fourth quarter plunged from a year ago, as revenues declined due to lower market prices for potash and phosphates. The absence of a hefty tax benefit recorded a year ago also impacted the bottom line.

Plymouth, Minnesota-based Mosaic's profit for the fourth quarter plunged to $128.9 million or $0.30 per share from $615.7 million or $1.44 per share last year. Special items hurt earnings per share by $0.06, while last year the company recorded a tax benefit of $0.42 per share.

"While our results for the fourth quarter reflect the low market prices for potash and phosphates, current market conditions are improving," said Chief Executive Jim Prokopanko. "Market dynamics are unfolding as we expected they would, with sales volumes increasing before prices; in fact, we shipped a record volume of phosphates during the quarter, and potash volumes increased significantly."

Mosaic's net sales for the fourth quarter dropped to $2.18 billion from $2.37 billion last year. Five analysts polled by Thomson Reuters had a consensus revenue estimate of $2.54 billion for the quarter.

Net sales in the Potash segment dropped to $652 million from $726 million, reflecting a 30 percent decline in prices. The fourth quarter average MOP selling price, FOB plant, was $303 per tonne, down from $435 a year ago.

Phosphates segment sales declined 6 percent to $1.6 billion, as lower prices of finished product offset higher volumes. The fourth quarter average DAP selling price, FOB plant, was $381 per tonne, compared to $532 a year ago.

Mosaic also authorized a $1 billion share repurchase program, allowing the company to repurchase Class A or common shares, through direct buybacks or in open market transactions.

MOS is currently trading at $48.01, up $1.19 or 2.55%, on the NYSE.