Potash

The Mosaic Company (NYSE:MOS) announced its second quarter financial results, which included net earnings of $391 million, compared to $248 million in Q2 2014.

The Mosaic Company (NYSE:MOS) announced its second quarter financial results, which included net earnings of $391 million, compared to $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.

Second quarter highlights:

  • The Company’s progress against strategic priorities is positively impacting financial results. During the second quarter Mosaic delivered:
  • Higher margin rates in both Potash and Phosphates, driven by:Significantly lower MOP cash production costs of $89 per tonne, including $18 per tonne of brine management expenses.
  • Lower phosphate rock costs and improvements in finished phosphate conversion costs per tonne.
  • Flat Selling, General and Administrative expenses with an expanded business footprint compared to last year.
  • Integration of Archer Daniels Midland’s fertilizer distribution business in Brazil and Paraguay is largely completed and the Company is on track to achieve targeted benefits.
  • Mosaic’s growth initiatives in Canada and Florida continue to be on time and on budget.
  • The Company’s joint venture phosphate project, Wa’ad Al Shamal Phosphate Company, is projecting a capital cost of approximately $8.0 billion, or seven percent higher than initial capital estimates.
  • Subsequent to the end of the second quarter, the Company completed its previously announced $500 million accelerated share repurchase program.
  • Mosaic continues to maintain a strong balance sheet and generate attractive operating cash flow, ending the quarter with $2.2 billion of cash and cash equivalents on the balance sheet.

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 Mosaic Company (NYSE:MOS) press release.

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