Mosaic's First Quarter Earnings Results Fall Short

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Last Update: 29-Sep-11 11:46 ET

Mosaic (MOS $54.03 -3.16) reported first quarter earnings of $1.17 per share, in-line with the $1.17 preannouncement, may not be comparable to the $1.27 Capital IQ Consensus Estimate; revenues rose 40.9% year/year to $3.08 billion, in-line with the preannounced and vs the $2.9 billion consensus.

Mosaic reports Q1 potash sales volume of 1.8 million vs. 1.7-1.9 million co guidance; reports MOP pricing of $446 versus $430-455 per tonne co guidance. Mosaic reports Q1 phosphate sales volume of 3.2 million vs. 3.0-3.3 million co guidance; reports DAP pricing of $576 versus $560-590 per tonne co guidance.

Guidance: Total sales volumes for the Potash segment are expected to range from 1.7 to 2.1 million tonnes for the second quarter of fiscal 2012. Mosaic's realized MOP price, FOB plant, for the second quarter of fiscal 2012 is estimated to range from $440 to $465 per tonne.

Total sales volumes for the Phosphates segment are expected to range from 3.1-3.5 million tonnes for the second quarter of fiscal 2012. Co's realized DAP price, FOB plant, for the second quarter of FY12 is estimated to range from $600-625 per tonne. The Q2 operating rate in the Potash segment is expected to range from 80-90% of operational capacity as planned annual maintenance activities continue at a diminished rate. The Co's operating rate at its North American phosphate operations is expected to exceed 85% of operational capacity during its second quarter. Previously disclosed 2012 guidance for capital spending, SG&A, Canadian resource taxes and royalties, and effective income tax rate have not changed.