The Mosaic Co. reported fourth quarter 2016 net earnings of $12 million ($0.03 per diluted share), down from $155 million ($0.44 per share) in the fourth quarter of 2015. Mosaic’s net sales in the fourth quarter were $1.9 billion, down from $2.2 billion last year, with lower prices more than offsetting higher phosphate volumes.
Operating earnings during the quarter were $74 million, down from $204 million a year ago, driven by lower phosphate and potash prices, partially offset by lower phosphate raw materials costs and cost management.
Mosaic announced a reduction in its targeted annual dividend to $0.60 per share, effective with the next declaration.
“Our fourth quarter results reflect strong market demand for potash and phosphates driven by improving market sentiment, as well as benefits from significant operational improvements,” said Joc O’Rourke, president and CEO. “Our cash production costs in Potash and our fourth quarter SG&A were at the lowest level in almost a decade. While we are confident the market bottom is behind us, the pace of improvement is expected to be gradual. As a reflection of our commitment to investors to maintain a strong financial position, we have reduced our annual dividend payout to $0.60 per share.”
For the twelve months ended Dec. 31, 2016, net income was $298 million ($0.85 per share), compared to $1.0 billion ($2.78 per share) in 2015. Net sales were $7.2 billion, down from $8.9 billion a year ago.
Full-year operating earnings were $319 million, down from $1.3 billion last year, as lower operating expenses were more than offset by lower sales volumes and prices in potash and lower phosphate prices.