Mosaic posts record Q3 profit; plans expansion in Canada

Mosaic Co. said Friday it recorded a record profit for the third quarter, as costs to consumers for the fertilizer maker's products were up. The company also announced plans to expand in Canada, citing an increased demand for potash.

Shares of Plymouth-based Mosaic (NYSE: MOS) were up almost 10 percent in trading Friday, to $114.13, up after closing at $104.52 on Thursday.

Net income for the third quarter grew to $520.8 million, or $1.17 per share, from $42.2 million, or 10 cents per share. Revenue was recorded at $2.15 billion, up from $1.28 billion.

Analysts polled by Thomson Financial expected earnings per share of 95 cents on revenue of $1.92 billion.

Mosaic CEO Jim Prokopanko said in a statement, "We are delivering record results by effectively executing against the backdrop of an exceptional agricultural environment."

The company said that its bottom line was boosted by increased selling prices and strong sales of lower cost inventories in its offshore segment, which helped offset higher costs for sulfur and ammonia, two primary raw materials for phosphates.

The company detailed that it averaged a price of $487 per metric ton of diammonium phosphate, up from $241 per metric ton a year-earlier.

It also recorded a $40.1 million tax benefit and a $24.6 million gain stemming from the sale of a minority interest in a noncore business.

The company also said Friday that it expects prices for one of its key products to rise by almost half this quarter, amid what it called an "extraordinary" environment.

Mosaic predicted that selling prices for its diammonium phosphate would rise 48 percent in the next three months to $720 per metric ton.

The company forecast a diammonium phosphate price for the April-June period between $710 and $730 per metric ton, and restated its sales volume forecast of 2.2 million to 2.4 million metric tons.

The company also announced further expansion in expansion in Saskatchewan, Canada, citing a robust global demand for potash. Along with expansions announced last year, the company is looking to boost its are annual capacity by approximately 5.1 million metric tons. The company also said that the expansions will occur over the next twelve years, with the first expansion production coming on line in 2009.