Mosaic announced record Q3 earnings of $542.1 million as compared to Q3 earnings of $222.6 million for the third quarter in the previous year. Driving these earnings were an increase in net sales in Q3 FY2011. Net sales increased to $2.2 billion as compared to $1.7 billion in year ago results. Phosphate sales as well as potash sales increased to 2.4 million tons and 1.9 million tons respectively. Their respective selling prices were $543 and $358 per ton. Similarly, gross margin increased to 39% of net sales as compared to 28% of net sales in the third quarter of the previous year. In other words, Mosaic's gross margin was $853.6 million in Q3 FY2011 as compared to $476.5 million in year ago results.
Mosaic tripled its net earnings for the first quarter of 2011 as compared to first quarter results the previous year Earnings posted at $297.7 million as compared to $100.6 million in year ago results. These earnings were driven by improved gross margin as a percent of net sales. Gross margin for the quarter was 23% as compared to 15% in Q1FY2010. Net sales similarly improved from year ago markers. Mosaic's net sales improved from $1.5 billion in the first quarter of 2010 to $2.2 billion in Q1FY2011.
These earnings are set against the backdrop of higher potash sales volumes and higher prices for phosphate sales; potash sales prices, however, partially offset these gains for the first quarter. Net sales in Phosphates increased by $400 million for the quarter culminating at $1.6 billion. Potash's net sales increased to $621.9 million from $333.3 million in the previous quarter.
Mosaic posted net earnings of $396.1 million for the fourth quarter of 2010 as compared to net income of $146.9 million for the fourth quarter of 2009. These increases were driven by increased net sales in the fourth quarter. Net sales for the quarter increased from $1.6 billion in year-ago results to $1.9 billion, a 17% increase. Gross margin similarly jumped in Q4, culminating at 37% of net sales as compared to 13% of net sales last year.
Operating earnings were $547.6 million compared to $421.3 million last year. All business metrics were driven by improved conditions for Mosaic's three business segments. Phosphate sales prices increased over the course of the quarter to bring its gross margin to $306.6 million as compared to a loss of $31.9 million the previous year. Net sales for Potash were approximately double that of year ago results, reaching $696.5 million.[
"On May 2010, Mosaic reported net income of $1.85 per share, or $827.1 million total, decreasing from last year's earnings of $5.27 per share by 65%."
Mosaic posted net earnings of $107.8 million for the second quarter of fiscal year 2010, a decrease from net earnings of $959.8 million the same quarter in fiscal year 2009. Net sales culminated at $1.7 billion for the quarter, a $1.3 billion, or 43%, drop from $3.0 billion the previous year.
Agriculture and fertilizer stocks grewon average 1.7% this past week, earning a shout out by Jim Cramer on Mad Money on Nov. 17.
The company announced its plans to reduce phosphate production by 500,000 metric tons by the end of the year, or roughly 10% of its annual aggregate phosphate production. The company blames declining levels of fertilizer demand as cause to scale back its production.
On April 4th, Mosaic reported that Q3 revenues were up by 68% versus the same quarter a year ago. The company also handily beat analysts' estimates.
The U.S. Department of Agriculture estimated that the 2007 fall corn harvest would be the second largest ever produced. The acres of corn harvested is estimated to be the highest since 1933. The increased demand for ethanol and corn has had a positive effect on many stocks in the agricultural business.