Mosaic Reports Second Quarter Earnings of $391 Million

The Mosaic Company (NYSE:MOS) announced second quarter 2015 earnings of $391 million, a 57 percent increase compared to the $248 million in Q2 2014.
As quoted in the press release:

Earnings per diluted share were $1.08 in the quarter compared to $0.64 last year. Notable items positively impacted current quarter earnings per share by $0.03. Mosaic’s net sales in the second quarter were $2.5 billion, up from $2.4 billion in sales last year. Operating earnings during the quarter were $510 million, up from $403 million a year ago. The year-over-year change was driven by higher phosphates operating earnings primarily as a result of higher sales volumes, and higher potash operating earnings as a result of higher realized prices and benefits from lower operating costs, partially offset by higher Canadian resource taxes.
Cash flow from operating activities in the second quarter of 2015 was $583 million, which is down from $796 million in the prior year period as a result of favorable working capital trends last year. Capital expenditures totaled $227 million in the quarter. Mosaic’s total cash and cash equivalents were $2.2 billion and long-term debt was $3.8 billion as of June 30, 2015.
Net sales in the Phosphates segment were $1.4 billion for the second quarter, up from $1.3 billion last year with higher sales volumes partially offset by lower finished product prices. Gross margin was $296 million, or 21 percent of net sales, compared to $271 million, or 20 percent of net sales, for the same period a year ago. The year-over-year improvement in gross margin rate primarily reflects lower phosphate rock costs, partially offset by lower finished product selling prices. Operating earnings were $259 million, up from $219 million in the same quarter last year.

Jim Prokopanko, president and CEO of Mosaic, commented:

Our second quarter results demonstrate the earnings leverage we’ve created. Over the course of the last two years, we have transformed Mosaic’s operations to become more efficient and made great progress in optimizing our balance sheet. This quarter we generated higher earnings per share than two years ago, notwithstanding lower potash and phosphates prices since then.

Click here to read the full The Mosaic Company (NYSE:MOS) press release.