All Posts from July 31, 2014

Mosaic earnings released; CEO to return

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.

Intrepid pulls out of loss column

Intrepid Potash Inc. reported net income for the second-quarter ending June 30, 2014, of $5.6 million ($0.07 per diluted share), up from the first-quarter loss of $355,000 ($0.00 per share). Second-quarter net income was still below the year-ago $11.3 million ($0.15 per share).

Second-quarter sales were up at $110.9 million versus the year-ago $92.7 million.

Potash sales volumes were up at 235,000 st from 184,000 st, though average realized prices were down at $329/st from $402/st.

Trio volumes surged to 62,000 st ($350/st) from the year-ago 35,000 st ($359/st).

Company-wide, six-month net income was $5.2 million ($0.07 per share) on sales of $209.8 million down from the year-ago $26.2 million ($0.35 per share) and $191.9 million, respectively.

Six-month potash volumes were 478,000 st ($323/st) up from the year-ago 369,000 st ($409/st).

Six-month Trio volumes were 98,000 st ($347/st), up from 74,000 st ($354/st).

Agrium mine offline

Agrium Inc. confirmed today that it’s Vanscoy, Saskatchewan, potash mine experienced a mechanical failure on its main hoist system. As a result, production has been shut down at this facility. Due to the outage, Agrium will bring forward the planned turnaround to tie-in the current capacity expansion project. Production at the facility will therefore remain shut down until the tie-in is complete.

There were no injuries and Agrium does not expect any significant impact on the workforce.

Further information regarding the outage will be provided in the company’s second quarter conference call on Aug. 7, 2014.

Downtime impacts CVR 2Q

Nitrogen marker CVR Partners LP said today reported second quarter 2014 net income of $17.1 million $0.23 cents per diluted common unit), on net sales of $77.2 million, compared to net income of $35.4 million ($0.48 cents per unit) net sales of $88.8 million for the 2013 second quarter.

“Production levels in the 2014 second quarter were impacted by planned downtime at the fertilizer plant, during which we performed maintenance work and addressed previously disclosed issues with our ammonia plant,” said Mark Pytosh, CVR CEO. “As expected, pricing for the first half of this year was lower than the first six months of 2013. However, we were pleased to see a nearly 12 percent increase in our average realized gate prices for UAN in the 2014 second quarter as compared to the first quarter of 2014.”

For the first six months of 2014, net income was $38.6 million ($0.53 cents per unit), on net sales of $157.5 million, compared to $71.0 million ($0.97 per unit) on net sales of $170.2 million for the comparable period a year earlier.

Cargill acquires Mosaic Hersey facility

Cargill has completed the acquisition of a salt production business in Hersey, Mich., from the Mosaic Co. Terms were not disclosed.

In November 2013, Mosaic announced it would stop producing potash in Hersey and sell the plant as a salt operation. Cargill will operate Hersey as a salt facility, producing primarily water softener salt and salt products used in agriculture.

“This is a well-run facility,” said Marcelo Montero, president of Cargill Salt. “Hersey gives us an additional location to provide our customers with a variety of quality products. It will also allow us to compete for new business.”

Montero said the Cargill team is looking forward to being a supportive member of the Hersey area community in the same way it does at other Cargill locations.

The Hersey business currently employs about 80 people, and Cargill expects it will probably have a similar staffing level.

Cargill Salt has a production facility at St. Clair, Mich., along with several other locations in the United States, Bonaire (Netherlands Antilles) and Venezuela.