The Mosaic Co. reported a 26 percent increase in net income attributable to Mosaic for the third quarter ending Feb. 28, 2013, to $344.6 million ($0.81 per diluted share) on sales of $2.24 billion, compared to the year-ago $273.3 million ($0.64 per share) on sales of $2.19 billion. Operating income was $419.1 million, up from $413.7 million.
Third-quarter potash volumes soared to 1.77 million mt with an average MOP FOB plant price of $385/mt, compared to the year-ago 1.1 million mt and $453/mt, respectively. The average offshore price was $325/mt and North American crop nutrient $434/mt, versus the year-ago $411/mt and $531/mt, respectively. Potash gross profit was $308 million on sales of $758 million, up from the year-ago $270 million on sales of $553 million. Operating earnings were $216 million, down 8 percent from the year-ago $234 million. The current quarter included some $42 million in charges relating to the settlement of potash antitrust litigation. Production was 2 million mt, or 78 percent of capacity.
Third-quarter phosphate volumes were 2.64 million with an average DAP FOB plant price of $496/mt, versus the year-ago 2.59 million mt and $536/mt. Gross margin was $266 million on sales of $1.5 billion, up from the year-ago $259 million on sales of $1.65 billion. Operating earnings were $197 million, up from the year-ago $190 million. Finished phosphate production was 2.1 million mt, or 87 percent of operational capacity. Phosphate rock production was 3.6 million, up from 2.9 million mt. Average ammonia market prices were $665/mt, up from the year-ago $524/mt, while sulfur prices were down to $157/lt from $204/lt.
Nine-month income was down slightly, to $1.4 billion ($3.29 per share) on sales of $7.3 billion from the year-ago $1.42 billion ($3.24 per share) on sales of $8.3 billion. Operating income was down at $1.59 billion from the year-ago $1.94 billion.
Mosaic expects its fourth-quarter phosphate prices to be flat, and that India will come back into the market toward the end of the quarter – May. Sales volumes are expected to be 2.6-2.9 million mt, with average prices in the $475-$505/mt range. Margins are expected to be flat, with operating rates exceeding 85 percent.
Total sales potash sales volumes are expected to range from 2.3-2.6 million mt, with FOB prices in the $350-$380/mt FOB range, reflecting a substantially higher mix of standard product. Fourth-quarter operating rates are expected to be above 85 percent.