Mosaic plans to reduce finished phosphate production by up to 250,000 tonnes through March 31, 2012; company says current spot prices not sustainable
December 28, 2011
– The Mosaic Company (NYSE: MOS) announced a plan to reduce finished phosphate production by up to 250,000 tonnes through March 31, 2012.
"Isolated phosphate market spot prices have become disconnected with the underlying agricultural fundamentals. As dealers and distributors focus on the macroeconomic uncertainty and delay purchases for the North American Spring Season, near term supply of phosphate barges on the Mississippi River has exceeded near-term demand. The current spot prices in this market do not reflect our outlook for the business, nor do we think they are sustainable. In response, we have decided to cut planned production by 250,000 tonnes over the next three months," said Jim Prokopanko, President and Chief Executive Officer.
The Company's second quarter results will be released after close on January 4, 2012. Volumes and pricing for the second fiscal quarter were within prior guidance ranges, for both phosphate and potash. The Company will provide guidance for the third fiscal quarter in the January 4, 2012 earnings release.
"We continue to expect an above average application season in North America and record-setting global demand for both phosphate and potash in 2012," stated Prokopanko. "We are confident strong farmer economics and agricultural fundamentals will ultimately prevail over the near-term cautious sentiment."
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single-source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the company is available at www.mosaicco.com.