Plymouth, Minn.-The Mosaic Co. on June 3 announced its financial guidance for the first quarter ending Aug. 31, 2008, and for its fiscal year ending May 31, 2009. Phosphate sales volumes are expected to be in the range of 9.0 to 9.4 million mt for fiscal 2009. This increase is contingent upon sourcing an adequate supply of sulfur, the company said, as well as operating mine and plant sites at high operating rates and restarting certain previously closed phosphoric and sulfuric acid production sites in the second half of the fiscal year. These restarts will permit Mosaic to utilize excess granulation capacity at one of its existing plants. Potash sales volumes are expected to be 8.2 to 8.6 million mt in fiscal 2009. Previously announced potash capacity expansion projects will be underway in fiscal 2009, the company noted, but production from the first of the expansions will not come online until fiscal 2010. Mosaic said its volume estimate assumes operating the potash facilities at high operating rates and continued successful management of the brine inflow at the Esterhazy mine. Mosaic estimates a realized DAP price in the range of $1,020-$1,080/mt FOB plant in the first quarter of fiscal 2009, and an estimated average realized muriate of potash price in the range of $460-$510/mt FOB plant for the same quarter. Both estimates assume farmer economics remain robust and that management has accurately estimated the mix of forward versus spot sales. The company said capital spending for fiscal 2009 will grow significantly to a range of $900 million to $1.1 billion, which is more than double the company’s historical rates. Mosaic said it will pursue capital projects with high returns, including expanding its potash capacity and reducing phosphate costs, along with increasing preventive maintenance projects designed to continue high operating rates at its facilities. These projects are fairly evenly split between the phosphates and potash business segments, the company said. Selling, general, and administrative expenses for the company are expected to range between $360-$390 million for fiscal 2009. “We anticipate reporting robust fourth quarter results in fiscal 2008 as strong demand and the tight supply situation continues for crop nutrients,” said Jim Prokopanko, Mosaic president and CEO. “Given the world’s burgeoning demand for grains and oilseeds, our fiscal 2009 financial guidance reflects strong financial performance momentum and underscores Mosaic’s commitment to investing in the crop nutrition industry and helping farmers produce crops with greater yields.”
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