WASHINGTON (dpa-AFX) - Mosaic Co. (MOS), a producer of concentrated phosphate and potash crop nutrients, reported Tuesday a decline in fourth-quarter profit primarily driven by lower phosphate pricing. Looking ahead, the company said it anticipates another good year in fiscal 2013, with continuing growth in global demand for crop nutrients. The company also doubled its annual dividend.
For the fourth quarter, net earnings attributable to the company declined to $507.3 million or $1.19 per share from last year's $649.2 million or $1.45 per share. The latest quarter results were negatively impacted by certain items totaling $0.06 per share.
Mosaic's net sales in the fourth quarter were $2.82 billion, roughly flat with last year's $2.86 billion as growth in realized potash prices was offset by lower prices in phosphates. On average, five analysts polled by Thomson Reuters expected revenues of $2.54 billion.
The company said in its statement, 'The extended spring season in North America, along with continuing strong demand for our products in Central and South America, led to solid financial results for the quarter. Despite challenging market conditions for much of the fiscal year, Mosaic made great progress.'
Mosaic's gross margin declined to 30 percent from 35 percent a year ago driven by lower phosphate pricing.
Looking ahead for the first quarter, the company expects total sales volumes for the Potash segment would range from 1.8 to 2.2 million tonnes and total sales volumes for the Phosphates segment are expected to range from 2.5 to 2.8 million tonnes.
Further, the company said its Board of Directors approved an annual dividend program of $1.00 per share, which increases the annual targeted dividend 100 percent from the current level of $0.50 per share.
The new dividend program would go into effect with the next regularly declared dividend, expected to be declared on July 19.
Copyright RTT News/dpa-AFX
© 2012 AFX News
