Mosaic Shows Huge Decline In Earnings & Margin (MOS)
March 28, 2012 by Jon C. Ogg
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 volumes and higher phosphate raw material costs. Earnings per share fell to $0.64 in the quarter from $1.21 in the same quarter last year, although earnings were negatively impacted by notable items totaling $0.08 per share mostly tied to foreign currency transaction losses.
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
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.