After seed company Monsanto Co. (NYSE: MON) announced on Wednesday its second-quarter profit more than doubled on higher corn seed and herbicide sales, it was its main competitor Mosaic Co. (NYSE: MOS)'s turn to step up to the plate and impress Wall Street. The world's largest maker of phosphates managed to exceed estimates, posting a growth of more than 12-fold for its fiscal third-quarter profit.Mosaic reported that its quarterly profit surged to $520.8 million as the fertilizer maker recorded strong demand brought on by higher crop prices. The company posted earnings of $1.17 a share, topping analysts' estimates for a quarterly profit of 95 cents a share.
Looking at revenue, Mosaic saw an increase of 68% to $2.15 billion. During this period, the company benefited from strong sales in its phosphates and potash businesses. Thus, the phosphates segment came with a growth in sales of 82%, while the potash segment brought a surge of 60% n revenue. Analysts, on average, expecting the fertilizer maker show sales of $1.92 billion for the quarter, according to Thomson Financial.
Based on its key phosphate and potash businesses which "looks extraordinary despite the recent turbulence in commodity markets," Mosaic announced plans related to a 12-year potash capacity expansion. The company's goal is to increase its annual capacity by about 5.1 million metric tons.
Eliza Popescu is a financial writer for the online investment advisory service Investor's Observer.
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