Mosaic rises after blowing past Q2 earnings estimates

The Mosaic Company (NYSE: MOS), one of the world's leading producers of concentrated phosphate and potash crop nutrients, reported Monday a fiscal second-quarter profit of $959.8 million, or $2.15 per diluted share. That was 58.6% higher than in the same period of the previous year. Net sales in the quarter ended November 30, 2007 came to $3.0 billion, an increase of 36.9% from a year ago. Analysts surveyed by Thomson Reuters had expected per-share earnings of $1.43 per share on revenue of $3.0 billion.

Mosaic's gross margin for the quarter was $773.7 million, or 25.7% of net sales, compared with $623.1 million, or 28.4% of net sales, a year ago. Mosaic said it ended the second quarter with $2.8 billion in cash and cash equivalents.

For the first half ended November 30, 2008, net sales were $7.3 billion, an increase of 74.6% compared to last year. Year-to-date operating earnings were $2.2 billion compared with $979.2 million for the same period a year ago.

The Minnesota-based company said worldwide crop nutrient sales activity is expected to remain weak through the third quarter, so the company is reducing production to manage excess inventories, reduce capital expenditures, and maintain financial strength and flexibility. Mosaic expects its operating cash flow to be negative at least through the third quarter as a result of the weak near-term outlook.

The share price rose Monday 2.2% to $37.67. Shares have risen 36.6% in the past month, but are 60.5% lower than a year ago.

Shares of rival Potash Corp. (NYSE: POT) also rose on Monday.

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