The Mosaic Co. today reported fourth quarter 2014 net earnings of $361 million, compared to $129 million in the fourth quarter of 2013. Earnings per diluted share were $0.97 in the quarter compared to $0.30 last year. Mosaic’s net sales in the fourth quarter of 2014 were $2.4 billion, up from $2.2 billion last year.
"While we expected strong fourth-quarter results, demand exceeded our expectations as customers came to the market in force, seeking to replenish empty inventories ahead of an expected strong spring application season in North America," said Jim Prokopanko, president and CEO. "2014 was a year of transformation for Mosaic. We grew and rebalanced our business portfolio, optimized our balance sheet, and worked to assure Mosaic remains a low-cost producer."
For the twelve months ended Dec. 31, 2014, net income was $1.0 billion, or $2.68 per diluted share, compared to $1.1 billion, or $2.49 per diluted share in 2013. Net sales were $9.1 billion, up from $9.0 billion a year ago.
"We are seeing the benefits of the many strategic initiatives we completed last year," Prokopanko said. "We continue to watch grain and oilseed prices, but we are optimistic heading into 2015. At Mosaic, we’ve taken advantage of the short-term cyclical dips and are well positioned to capitalize on the inevitable upward secular trends."
Total sales volumes for the Phosphates segment are expected to range from 2.8 to 3.1 million mt for the first quarter of 2015, compared to 2.7 million mt last year. Mosaic’s realized DAP price, FOB plant, is estimated to range from $440 to $465 per mt for the first quarter of 2015. The segment gross margin rate in the first quarter is estimated to be in the mid-teens and the operating rate is expected to be in the 80 to 85 percent range.
The company will provide updated Phosphates guidance reflecting the separation of the phosphate manufacturing and international distribution businesses in March, 2015.
Total sales volumes for the Potash segment are expected to range from 2.0 to 2.3 million mt for the first quarter of 2015, compared to 2.4 million mt last year. Mosaic’s realized MOP price, FOB plant, for the first quarter of 2015 is estimated to range from $270 to $295 per mt. Mosaic’s gross margin rate in the segment is expected in the high 30 percent range during the first quarter of 2015, while the operating rate is expected to be in the 85 to 90 percent range in preparation for anticipated strong demand this spring.
For the 2015 full year, Mosaic estimates Phosphates sales volumes in the range of 14.5 to 15.0 million mt and Potash sales volumes in the range of 8.5 to 9.0 million mt.