First Quarter 2016 Results
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First Quarter 2016 Results

May 04, 2016   |   ShareThis

The Mosaic Company (NYSE: MOS) today reported first quarter 2016 net earnings of $257 million, down from $295 million in the first quarter of 2015. Earnings per diluted share were $0.73 and included a positive impact of $0.59 from notable items, primarily related to currency and tax benefits. Mosaic’s net sales in the first quarter of 2016 were $1.7 billion, down from $2.1 billion last year, reflecting lower prices as well as lower potash sales volumes. Operating earnings during the quarter were $163 million, down from $319 million a year ago, as the lower net sales were partially mitigated by lower potash and phosphate production costs and benefits of continued expense management initiatives.

“We are seeing the benefits of the actions we’ve taken to weather this down part of the cycle,” said Joc O’Rourke, President and Chief Executive Officer. “While we expect profitability to improve in the second half of the year, we are making further adjustments to ensure Mosaic remains competitive in any environment.”

Cash flow provided by operating activities in the first quarter of 2016 was $266 million compared to $729 million in the prior year. Capital expenditures plus investments totaled $274 million in the quarter. Mosaic’s total cash and cash equivalents were $1.1 billion and long-term debt was $3.8 billion as of March 31, 2016. The Company completed a previously announced $75 million accelerated share repurchase.

“Mosaic is focused on optimizing cash flow by reducing operating and support function costs and moderating capital spending,” said Rich Mack, Mosaic’s Executive Vice President and Chief Financial Officer. “At the same time, our prudent balance sheet management is allowing us to manage effectively through the bottom of the cycle and seek new opportunities for future growth.”

View the full press release.