Mosaic Q4 net income declines 83%
Mosaic Co. (MOS), fertilizer manufacturer and rumored takeover target, announced Wednesday its fiscal fourth-quarter profit dropped 83 percent as sales of potash and phosphate tumbled. The company posted net income of $146.9 million, or $0.33 per share, compared with $862.5 million, or $1.93 per share, in the year-earlier period. Analysts were expecting a profit of $0.10 a share.
Revenue declined 54% to $1.6 billion in the fourth quarter as potash and phosphate, key ingredients in many types of fertilizer, dropped during the period. Management noted the decline was "related to continued cautious purchasing by customers due to, among other factors, volatile grain and oilseed prices, global economic conditions, the recalibration of the phosphate market to reflect, in part, lower raw material input costs and the lack of normal contracting activity in the potash market."
Mosaic forecasts a recovery in fertilizer in its fiscal 2010 as inventories have fallen to such a low level. Mosaic CEO Jim Prokopanko commented, "While near-term uncertainties remain, we have emerged from the market turmoil of the past year as a stronger competitor and are poised to capitalize on the positive trends we foresee in the potash and phosphates markets."
Management's outlook for agriculture is consistent with that of Farmland Forecast as the company stated, "a new middle class is emerging that has the financial wherewithal to improve their diets. This long-term trend, along with steady global population increases, translates into continued demand for crop nutrients."
Mosaic declined to comment on its rumored acquisition by the Brazilian miner Vale.
In Thursday afternoon trading, Mosaic stock is up almost 7% to $51.77
- Colvin
Revenue declined 54% to $1.6 billion in the fourth quarter as potash and phosphate, key ingredients in many types of fertilizer, dropped during the period. Management noted the decline was "related to continued cautious purchasing by customers due to, among other factors, volatile grain and oilseed prices, global economic conditions, the recalibration of the phosphate market to reflect, in part, lower raw material input costs and the lack of normal contracting activity in the potash market."
Mosaic forecasts a recovery in fertilizer in its fiscal 2010 as inventories have fallen to such a low level. Mosaic CEO Jim Prokopanko commented, "While near-term uncertainties remain, we have emerged from the market turmoil of the past year as a stronger competitor and are poised to capitalize on the positive trends we foresee in the potash and phosphates markets."
Management's outlook for agriculture is consistent with that of Farmland Forecast as the company stated, "a new middle class is emerging that has the financial wherewithal to improve their diets. This long-term trend, along with steady global population increases, translates into continued demand for crop nutrients."
Mosaic declined to comment on its rumored acquisition by the Brazilian miner Vale.
In Thursday afternoon trading, Mosaic stock is up almost 7% to $51.77
- Colvin
Posted by Colvin & Co. at 7/23/2009 1:51 PM 
Categories: Agriculture Companies
Tags: Mosaic agriculture fertilizer
Categories: Agriculture Companies
Tags: Mosaic agriculture fertilizer
Comments