Sector: Materials|Industry: Agricultural Inputs|Market Cap: $8.07B|Employees: 14K
The Mosaic Company, through its subsidiaries, produces and markets concentrated phosphate and potash crop nutrients in North America and internationally. The company operates through three segments: Phosphates, Potash, and Mosaic Fertilizantes. It owns and operates mines, which produce concentrated phosphate crop nutrients, such as diammonium phosphate, monoammonium phosphate, and ammoniated phosphate products; and phosphate-based animal feed ingredients primarily under the Biofos and Nexfos brand names, as well as produces a double sulfate of potash magnesia product under K-Mag brand name. The company also produces and sells potash for use in the manufacturing of mixed crop nutrients and animal feed ingredients, and for industrial use; and for use in the de-icing and as a water softener regenerant. In addition, it provides nitrogen-based crop nutrients, animal feed ingredients, and other ancillary services; and purchases and sells phosphates, potash, and nitrogen products. The company sells its products to wholesale distributors, retail chains, farmers, cooperatives, independent retailers, and national accounts. The company was incorporated in 2004 and is headquartered in Tampa, Florida.
Net sales decreased by 26% YoY to $2.679 billion, primarily due to lower average selling prices in Phosphate and Potash segments and lower sales volumes in Phosphate and Mosaic Fertilizantes. This reflects a challenging market environment compared to the prior year's strong performance.
Gross margin decreased by 40% YoY to $399.2 million, with gross margin percentage declining from 19% to 15%. This decline was primarily due to lower sales prices and volumes, as well as higher conversion costs in the Phosphate segment.
Net earnings attributable to Mosaic decreased by 90% YoY to $45.2 million, or $0.14 per diluted share. This was driven by the lower sales, lower gross margins, and a foreign currency transaction loss of $100.3 million compared to a gain in the prior year.