The Mosaic Co. today reported second quarter 2014 net earnings of $248 million, up from $218 million in the first quarter of 2014 and compared to $430 million a year ago. Earnings per diluted share were $0.64 in the quarter compared to $1.01 last year. Notable items negatively impacted earnings by $45 million, or $0.06 per share. Mosaic’s net sales in the second quarter of 2014 were $2.4 billion, down from $2.6 billion last year. Operating earnings during the quarter were $403 million, down from $526 million a year ago, as higher phosphate volumes were more than offset by significantly lower realized potash prices.
"Mosaic’s business momentum accelerated from the first quarter to the second quarter," said Larry Stranghoener, interim CEO. "Very strong global demand for phosphates pushed prices higher, while potash demand exceeded even our high expectations.
"We continued to effectively execute our many recent strategic initiatives. We completed our Class A share repurchase agreement, bringing our total shares repurchased to 12 percent of our 2013 year-end shares. In addition, the integration of the former CF Industries phosphate business in Central Florida is proceeding well, and we are progressing toward completion of the acquisition of ADM’s fertilizer distribution business in Brazil. Our work to generate cost savings of $500 million dollars over the next five years is also proceeding well, ensuring Mosaic remains a low-cost producer."
The company also announced that Jim Prokopanko will return from a previously announced medical leave and resume his duties as president and CEO on August 4, 2014. Stranghoener, who has announced his intention to retire at the end of 2014, will serve as executive vice president—strategy and business development.