Fertilizer Maker Mosaic Swings to a Loss

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 [e-mail]

(END) Dow Jones Newswires

August 02, 2016 09:28 ET (13:28 GMT)

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