Mosaic (MOS) Tops Q2 Views Amid Light Phosphate Sales; Sees Record Year in FY13

January 4, 2013 7:25 AM EST
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Mosaic (NYSE: MOS) reported a drop in operating profits during its most recent quarter as phosphate volume and margins eased.

According to data from the company this morning, second-quarter revenue fell 15.9 percent to $2.54 billion, while operating earnings fell 30 percent to $559.6 million. Net earnings were $628.8 million, or $1.47 per share. Following adjustment for a one-time tax benefit, EPS came in at $1.05.

Overall, the Street was looking for revs of $2.54 billion and EPS of 88 cents.

Mosaic was expecting an average selling price of $535 to $550 per tonne for phosphate in the quarter, with the actual number coming in at $544 per tonne. Volume of 3 million tonnes was also in the middle of the road.

The company was also looking for potash prices of $435 to $450 per tonne, with actual numbers coming in at $443 per tonne. Volume of 1.5 million tonnes outpaced the expected range of 1.3 million to 1.4 million tonnes.

Operational capacity of over 80 percent for phosphate and over 70 percent for potash beat views.

Looking ahead, Mosaic sees third-quarter phosphate sales of 2.5 million to 2.8 million tonnes and DAP price of $485 to $515 per tonne. Potash volume should be about 1.5 million to 1.8 million with MOP price of $370 to $400 per tonne.

For fiscal 2013, Mosaic boosted shipment expectations, now seeing 55 million to 57 million tonnes for potash and 63 million to 65 million tonnes for phosphates.

Shares are lower in early trading Friday.

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