Business

Mosaic misses profit estimates due to fall in fertilizer prices, damage from Hurricane Ian According to Reuters



© Reuters. FILE PHOTO: A sugar tow mine for phosphate rock at Mosaic’s Fort Meade South Mine in Fort Meade, Florida January 13, 2010. REUTERS/Scott Audette

By Ruhi Soni

(Reuters) – Mosaic Co (NYSE:) on Monday became the latest fertilizer maker to miss third-quarter profit estimates, hit by damage from Hurricane Ian and lower crop nutrient prices. heat.

Prices for nutrients like phosphate and potassium have cooled from record highs almost touched earlier this year as farmers cut back on fertilizer use to contain costs.

Graphics: Fertilizer prices fall from dizzying highs https://graphics.reuters.com/FERTILIZERS-PRICES/zdvxdybrrvx/chart.png

Competitor Nutrien (NYSE: Ltd, CF Industries Holdings Inc (NYSE:) and Intrepid Potash (NYSE:) Inc) missed quarterly profit estimates last week, with top fertilizer maker Nutrien also cutting its revenue forecast. enter the whole year.

Mosaic, the world’s largest producer of finished phosphates, saw a 4% drop in production and a 10% drop in phosphate sales as its Tampa, Florida operations suffered damage from the storm. Ian as well as leading to railway and port closures.

Adjusted earnings in its potash segment more than tripled to $871 million, but earnings in its phosphate segment were flat.

However, the company echoes its rivals when it expects global grain stocks to be scarce until 2023, as supply has yet to recover due to crop shipments from Ukraine, “the basin of the Seas of the Seas”. Black”, remains largely blocked.

Before Russia invaded Ukraine, the two countries together accounted for nearly 30% of global wheat exports. Ukraine is also a major supplier of corn and sunflower oil.

“The disruption of agricultural production in Ukraine due to the war, coupled with poor growing conditions in some of the major growing regions such as the Americas, Europe and China, has resulted in agricultural output,” Mosaic said. lower globally”.

Mosaic’s net income more than doubled to $841.7 million, or $2.42 a share, for the three months ended September 30.

Excluding items, however, the company earned $3.22 a share, missing the Wall Street consensus of $3.40 according to Refinitiv data.

Net sales of $5.35 billion also missed expectations of $5.79 billion.

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