WASHINGTON (dpa-AFX) - Fertilizer giant Mosaic Co. (MOS) said Wednesday after the markets closed that its second quarter profit fell 39% from last year, when results were boosted by a hefty gain from the sale of the Fosfertil business. Excluding that gain, second quarter profit rose 37% year-over-year.
The Plymouth, Minnesota-based company reported net income for the second quarter of $623.6 million or $1.40 per share, compared to $1.03 billion or $2.29 per share for the year-ago quarter.
The year-ago quarter results included a $570 million or $1.27 per share after-tax gain from the sale of the Fosfertil business.
Gross margin for the quarter improved to 29.2% from 28.7% in the prior year quarter. Operating earnings for the quarter rose 21% to $797.0 million from $658.2 million last year.
The gross margin and operating earnings growths were driven mainly by higher selling prices partially offset by higher phosphate raw material costs and lower volumes, the company said.
Net sales for the second quarter grew 13% to $3.01 billion from $2.67 billion in the same quarter last year.
Phosphates sales for the second quarter increased 10% to $2.2 billion, with 32.5% increase in average selling price and 13.5% drop in segments tonnes. Potash sales rose 20% to $839 million, reflecting a 33% growth in average selling price and a flat growth in segment tonnes.
Looking forward, the company said it expects its third quarter phosphates sales volumes to be in the range of 2.2 million to 2.6 million tonnes. Its realized DAP price, FOB plant, for the third quarter is estimated to be $530 to $560 per tonne.
Mosaic forecast third quarter potash sales volumes to be in the range of 1.2 million to 1.5 million tonnes. Its realized MOP price, FOB plant, for the third quarter is estimated to be $430 to $460 per tonne.
Jim Prokopanko, President and Chief Executive Officer of Mosaic, said, 'While we expect third quarter results to decline due to near-term macroeconomic uncertainty and cautious distributor purchasing behavior, we remain confident of the strong long-term demand prospects for our products.'
The company continues to expects its fiscal 2012 capital spending to be in the range of $1.6 to $1.9 billion.
Mosaic shares, which have traded in a range of $44.86 to $89.24 over the past year, closed Wednesday's regular trading session at $52.30, down 29 cents. The stock is currently gaining 27 cents in after hours trading. Mosaic was included in the S&P 500 on September 23.
Copyright RTT News/dpa-AFX
