Mosaic, the American integrated producer and marketer of concentrated phosphate and potash, has reported its results for the first quarter 2019.
- Mosaic reported first quarter 2019 net earnings of US$131 million compared to US$42 million last year, and diluted earnings per share (EPS) of US$0.34 compared to US$0.11 last year, both on revenues of US$1.9 billion.
- For the period, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was US$430 million compared to US$399 million in the prior year period, and EPS was US$0.25 compared to US$0.20 in the prior year period.
- Notable items in the quarter primarily related to foreign currency transaction gain, unrealized gain on derivatives, and gain due to fair value adjustment of the earnout liability related to the acquisition of Vale Fertilizantes.
- In the quarter, higher costs impacted all of Mosaic’s businesses, including costs associated with impacts of weather in North America and regulatory changes in Brazil. Combined costs related to maintenance and down time negatively impacted gross margin by US$77 million, including US$9 million the company designated a notable item, compared to US$37 million in the prior year period. These costs negatively impacted first quarter 2019 EPS by US$0.15 per share and adjusted EPS by US$0.13 per share.
- Mosaic revised its full-year adjusted EBITDA guidance to US$2.0 to US$2.3 billion, and adjusted EPS guidance to US$1.50 to US$2.00, primarily reflecting the impact of curtailments and higher costs associated with the impact of new tailings dam regulations in Brazil, the increase in Canadian resource taxes, and delayed recovery in phosphate margins. EPS guidance was also impacted by an increase in the estimated full year effective tax rate.
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Read the article online at: https://www.worldfertilizer.com/phosphates/09052019/mosaic-reports-first-quarter-2019-results/