New ETF Book by Larry Connors - Click here to read more
The Plumouth, Minnesota-based company reported net income for the first quarter of $100.6 million or $0.23 per share, compared to $1.2 billion or $2.65 per share for the year-ago quarter.
On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.35 per share for the first quarter.
Gross profit for the first quarter was $222.2 million or 15% of net sales, compared to $1.6 billion or 38% of net sales, in the prior year quarter.
First quarter operating earnings dropped to $134.2 million from $1.5 billion a year earlier.
Net sales for the first quarter fell 66% to $1.46 billion from $4.32 billion in the same quarter last year. Six analysts had a consensus revenue estimate of $1.54 billion for the first quarter.
First quarter sales in the company's Phosphates segment fell 69% to $814.4 million from $2.6 billion a year ago. The segment's operating earnings dropped to $61.2 million from from $950.8 million last year, mainly due to the effects of significantly lower selling prices.
The average first quarter diammonium phosphate selling price, FOB plant, was $276 per tonne, compared to $1,013 in the first quarter of last year The company said the market DAP selling price began to decline sharply toward the end of the second quarter of last fiscal before appearing to bottom out in the first quarter. Phosphates sales volumes were comparable with a year ago at 2.1 million tonnes.
First quarter sales in the company's Potash segment fell 66% to $333.3 million from $976.4 million a year ago. The segment's operating earnings dropped to $99.3 million in the first quarter from $477.8 million last year, hurt a sharp decline in sales volumes, the effects of significantly lower operating rates on fixed cost absorption and a decrease in average selling price.
The average first quarter muriate of potash selling price, FOB plant, was $382 per tonne, compared to $488 in the first quarter of last year. The Potash segment's total sales volume fell 58% to 0.8 million tonnes in the first quarter from 1.9 million tonnes last year, reflecting lower demand.
The company's offshore segment generated first quarter sales of $468.1 million, down from $1.0 billion a year ago mainly due to lower selling prices. The offshore segment had an operating loss of $8.0 million for the first quarter, compared to operating earnings of $159.0 million in the first quarter of last year.
"Phosphate fundamentals have improved. The potash market is evolving and we expect strong demand in calendar year 2010 for both nutrients," said Jim Prokopanko, Mosaic's President and Chief Executive Officer.
Looking forward, the company expects second quarter Phosphates sales volumes to be in the range of 1.8 million tonnes to 2.2 million tonnes. Mosaic expects its second quarter realized DAP price, FOB plant, to be $265 to $305 per tonne.
Mosaic said it is not providing financial guidance on potash sales volumes or MOP selling price until market conditions normalize.
Capital spending for fiscal 2010 is expected to grow to a range of $1.0 billion to $1.2 billion.
In August, Canadian fertilizer maker Agrium Inc. (AGU,AGU.TO) reported a 42% drop in second quarter profit, hurt by reduced potash sales volumes and lower selling prices for most products.
Last month, Potash Corp. of Saskatchewan Inc. (POT,POT.TO), North America's largest fertilizer producer, cut its full year earnings guidance, citing lower than forecasted potash sales volumes due to continued slow demand and limited restocking by fertilizer distributors around the world.
Mosaic shares, which have traded in a range of $21.94 to $59.34 over the past year, closed Monday's regular trading session at $45.96, down 22 cents and lost an additional penny in after hours trading.
For comments and feedback: contact editorial@rttnews.com Copyright(c) 2009 RTTNews.com, Inc. All Rights Reserved
More News:
Market Updates |
Stock Alerts |
All Trading News |
Stock Index
About TradingMarkets | Contact | Advertise | Careers | Link to Us | Site Map | Help | Terms & Conditions | Privacy Policy | Return Policy | Testimonials | Feedback
The Connors Group, Inc. ("Company") is not an investment advisory service, nor a registered investment advisor or broker-dealer and does not purport to tell or suggest which securities or currencies customers should buy or sell for themselves. The analysts and employees or affiliates of Company may hold positions in the stocks, currencies or industries discussed here. You understand and acknowledge that there is a very high degree of risk involved in trading securities and/or currencies. The Company, the authors, the publisher, and all affiliates of Company assume no responsibility or liability for your trading and investment results. Factual statements on the Company's website, or in its publications, are made as of the date stated and are subject to change without notice.
It should not be assumed that the methods, techniques, or indicators presented in these products will be profitable or that they will not result in losses. Past results of any individual trader or trading system published by Company are not indicative of future returns by that trader or system, and are not indicative of future returns which be realized by you. In addition, the indicators, strategies, columns, articles and all other features of Company's products (collectively, the "Information") are provided for informational and educational purposes only and should not be construed as investment advice. Examples presented on Company's website are for educational purposes only. Such set-ups are not solicitations of any order to buy or sell. Accordingly, you should not rely solely on the Information in making any investment. Rather, you should use the Information only as a starting point for doing additional independent research in order to allow you to form your own opinion regarding investments. You should always check with your licensed financial advisor and tax advisor to determine the suitability of any investment.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING AND MAY NOT BE IMPACTED BY BROKERAGE AND OTHER SLIPPAGE FEES. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER- OR OVER-COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.
The Connors Group, Inc.
10 Exchange Place, Suite 1800
Jersey City, NJ 07302
© Copyright 2009 The Connors Group, Inc.
