Mosaic 3Q income off 76 percent
The Mosaic Co. reported third-quarter 2016 net earnings of $39 million ($0.11 per diluted share) on sales of $1.95 billion, down from the year-ago $160 million ($0.45 per share) and $2.1 billion, respectively. Earnings per diluted share were $0.11, which included a negative $0.30 impact from notable items and a benefit of $0.08 per share from lowering the expected full year effective tax rate accrual.
Operating earnings were $70 million, down from the year-ago $246 million primarily driven by lower potash prices and lower phosphate margins partially offset by higher sales volumes and positive impacts of cost savings initiatives.
“We expected improving market conditions in the second half of 2016 and this quarter’s results reflect improvement,” said Joc O’Rourke, president and CEO. “Both potash and phosphate prices strengthened in the quarter as pent-up demand materialized. While the fourth quarter is expected to reflect a normal seasonal slowdown, we see a more stable operating environment in 2017, starting the year with lower pipeline inventories and demand growth in both nutrients. At the same time, we are taking action to protect the balance sheet and reduce operating expenses.”