Tomahawk, WI 7/31/2013 (Basicsmedia) – Mosaic Co (NYSE:MOS) produces concentrated phosphate and potash nutrients for crops to feed the agriculture industry globally. It is a chief supplier of nutrients and animal feed ingredients, operating two segments of Phosphates and Potash. The production facilities of Phosphate segment are based in Florida and Potash segment in Canada and the US. The Company also operates facilities in various other countries, including India, China and Brazil. Mosaic Co. has been figuring as one of the World’s Most Ethical Companies in a list provided by the Ethisphere Institute for last two successive years.

Mosaic Co had declared their 4Q2013 results on July 16, 2013, reporting net earnings at $486 million, as against the net earnings of $507 last year. Earnings per share were down to $1.14 as against $1.19 a year prior. Net sales for the Company in the final quarter were reported at $2.7 billion, as compared to $2.8 billion last year. A record sales volume of Potash and Phosphate products failed to surpass previous year’s 4Q operating earnings of $671 million at $621 million, due to lowering prices.

The Company quoted its net income for the entire year at $1.9 billion, or $4.42 per diluted share, same as $4.42 per diluted share in the previous year. Net sales were down by $1.1 billion at $10.0 billion. A down trend in sales and earnings was attributed to lowering prices of potash and phosphate. The annual dividend was increased 100% to $1.00 by the Company during the year at a cost of $427 million. Cash and equivalents were estimated by the Company at $3.7 billion as against a long-term debt of $1.0 billion, as on May 31, 2013.

Mosaic has been steadily progressing with its potash expansion plans which the Company claims to be ‘on time’ and ‘on budget’. The Company has about $948 million worth of capital expenditures balance under the current board approved authorization. Mosaic also had agreed earlier this year to develop combined phosphate production units in Saudi Arabia with Ma’aden and SABIC.

Shares of Mosaic Co. dropped more than 22% on the trading session of Tuesday, July 30, 2013, before closing 17.3% below the previous close of the stock. The top decliner in the S&P 500 on 30 July, Mosaic came under pressure after Russian producer Uralkali withdrew from one of the world’s two largest potash alliances on Tuesday.

Uralkali announced that this will bring down the prices of potash worldwide by about 25% bringing better deals for farmers. Uralkali also planned to increase its production and sales from 10.5 million tonnes this year to 14 million tonnes by 2015, after the termination of alliance, even as prices of Potash are set to decline further.

The entire fertilizer sector felt the jolts after Uralkali’s announcement, with Mosaic leading the top decliners. The stock closed the day at $43.81, down 17.28%, after making a new 52 week low at $39.95 during the trading session on Tuesday, July 30, 2013. The daily traded volume for the stock increased 15 times at 61.38 million shares traded during the day against an average of 4.01 million.

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