WASHINGTON (dpa-AFX) - Fertilizer giant Mosaic Co. (MOS) said Wednesday after the markets closed that its first quarter profit jumped 77% from last year, helped by higher sales volumes and selling prices for both phosphates and potash.
The Plymouth, Minnesota-based company reported net income for the first quarter of $526.0 million or $1.17 per share, compared to $297.7 million or $0.67 per share for the year-ago quarter.
Gross margin for the quarter improved to 28% from 23% in the prior year quarter. Operating earnings for the quarter jumped 78% to $729.6 million from $410.3 million last year.
Net sales for the first quarter rose 41% to $3.08 billion from $2.19 billion in the same quarter last year.
Mosaic's final numbers matched those of the preliminary results released on September 23.
'We just completed another excellent quarter for Mosaic,' said Jim Prokopanko, president and chief executive officer of Mosaic. 'Strong agricultural markets combined with our strength in execution are leading to excellent financial results, including the second highest gross margin for a first quarter in our history.'
Phosphates sales increased 40% to $2.2 billion, with 4% rise in segments tonnes and 34% increase in average selling price. Potash sales rose 40% to $873 million, reflecting an increase of 8% in segment tonnes and 35% growth in average selling price.
Looking forward, the company said it expects its second quarter phosphates sales volumes to be in the range of 3.1 million to 3.5 million tonnes. Its realized DAP price, FOB plant, for the second quarter is estimated to be $600 to $625 per tonne.
Mosaic forecast second quarter potash sales volumes to be in the range of 1.7 million to 2.1 million tonnes. Its realized MOP price, FOB plant, for the second quarter is estimated to be $440 to $465 per tonne.
'Despite global economic uncertainty, we expect continued strong demand for crop nutrients,' said Prokopanko. 'This is driven by the urgent need to replenish global grain and oilseed stocks.'
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 $54.50 to $89.24 over the past year, closed Wednesday's regular trading session at $57.19, down $3.16 or 5.24%. The stock is currently losing 14 cents in after hours trading. Mosaic was included in the S&P 500 on September 23.
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