Mosaic Profits More Than Double
Mosaic Co.’s fiscal fourth quarter earnings have more than quadrupled, ending with $2 billion in cash and cash equivalents. Which nutrients helped drive profits?
The company noted global demand for crop nutrients was growing at double the rate of the last 10 years, as grain and oilseed stocks remain at low levels despite record crops in 2007 and 2008. Net sales in the quarter more than doubled from a year-ago to $3.47 billion, driven by price increases for crop nutrients like diammonium phosphate and muriate of potash.
The fertilizer maker anticipated capital spending in fiscal 2009 of $900 million to $1.1 billion, as it plans to restart certain capacity on the phosphate side and works on production expansions on the potash side of its business.
“There is plenty of visibility right now in terms of what the future revenue stream is going to look like. From where we are right now, everything seems to be continuing to point in an upward direction,” Morningstar analyst Ben Johnson said in an interview.