The Mosaic Company ( MOS Quick Quote MOS - Free Report) logged profits of $1,035.9 million or $2.85 per share in second-quarter 2022, up from $437.2 million or $1.14 per share in the year-ago quarter.
Barring one-time items, adjusted earnings per share were $3.64, missing the Zacks Consensus Estimate of $3.93.
Net sales rose roughly 91.8% year over year to $5,373.1 million in the quarter. It missed the Zacks Consensus Estimateby 4.29%. Sales were driven by gains in all segments and higher year-over-year prices.
Net sales in the Potash segment rose to around $1.6 billion in the reported quarter, from $663 million in the prior year’s quarter. The upside was driven by higher prices. Sales volumes in the segment were flat year over year to 2.3 million tons. The segment’s gross margin per ton increased to $403 from $93 in the year-ago quarter.
The Phosphate division’s net sales climbed around 50% year over year to $1.8 billion in second-quarter 2022, driven by higher prices. Sales volumes in the segment fell 15% year over year in the quarter to 1.7 million tons. The gross margin per ton in the quarter was $383, up from $156 in the year-ago quarter.
Net sales in the Mosaic Fertilizantes segment were around $2.3 billion in the quarter, up around 118.1% year over year, driven by higher year-over-year prices. Sales volume in the quarter declined to 2.32 million tons from 2.34 million tons. The gross margin per ton in the quarter was $450, up around 144.6% year over year.
At the end of the quarter, Mosaic had cash and cash equivalents of $839.1 million, up from $769.5 million as of Dec 31, 2021. Long-term debt declined to $3,351.9 million from $3,382.2 million as of Dec 31, 2021.
Net cash provided by operating activities increased roughly 56.2% year over year to $1,585.1 million in the reported quarter.
The company noted that it expects tight grain and oilseed markets to persist through the balance of 2022 and into 2023. The war in Ukraine, high temperatures in North America and Europe, and developing drought conditions in parts of South America underscore the risk for lower yields globally, MOS stated.
Domestic crop prices continue to justify nutrient application to drive higher yields in North America, Brazil and China, notwithstanding higher input costs. The Indian government continues to support importers to ensure ample domestic supply. While domestic inventories remain at historically low levelsin India, shipments have increased in recent weeks, Mosaic noted.
The company forecasts total capital expenditures of $1.3 billion for full-year 2022. It projects selling, general and administrative expenses in the range of $420-$450 million.
Shares of Mosaic have increased 64% in the past year compared with a 53.9% rise of the
industry. Image Source: Zacks Investment Research Zacks Rank & Key Picks
Mosaic currently carries a Zacks Rank #3 (Hold).
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