Mosaic Shows Huge Decline In Earnings & Margin (MOS)
The Mosaic Company (NYSE: MOS) has posted its third quarter earnings, and the results show some serious declines in operating income and in margins. Net earnings fell to $273 million from $542 million a year ago due to lower potash…
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Mosaic’s net sales were flat at $2.2 billion in the third quarter as growth in phosphate sales was offset by declines in potash sales. Thomson Reuters had sales targeted at $2.5 billion.
The company report showed that the quarter’s gross margin was down to $522 million, or 24% of net sales, but that is down from $854 million and down from 39% of net sales from a year ago due mostly to lower potash volumes and higher phosphate raw material costs.
Cash flow provided by operating activities in the third quarter of fiscal 2012 was $405 million compared to $366 million in the prior year, and the company’s cash and cash equivalents were $3.2 billion and long-term debt was $1.0 billion as of February 29, 2012.
Mosaic shares closed down 0.6% at $58.22 and shares are indicated down around $58.00 in the after-hours.
JON C. OGG
Contact [email protected] for any questions or corrections.
Jon Ogg has been a financial news analyst since 1997. Mr. Ogg set up one of the first audio squawk box services for traders called TTN, which he sold in 2003. He has previously worked as a licensed broker to some of the top U.S. and E.U. financial institutions, managed capital, and has raised private capital at the seed and venture stage. He has lived in Copenhagen, Denmark, as well as New York and Chicago, and he now lives in Houston, Texas. Jon received a Bachelor of Business Administration in finance at University of Houston in 1992. www.247wallst.com.
