AP News

Mosaic drops after cutting 2Q production forecast


The Mosaic Co.'s shares fell in trading Wednesday after the phosphate and potash seller lowered its second-quarter production guidance.

THE SPARK: Mosaic said Tuesday that weak international demand for its fertilizers has hurt sales volume, which may not pick up till 2013.

For the current quarter, Mosaic cut its potash shipments outlook to 1.3 million to 1.4 million metric tons from 1.6 million to 1.9 million metric tons. For phosphate, it expects shipments of 2.9 million to 3.1 million metric tons rather than 3 million to 3.4 million metric tons.

THE BIG PICTURE: Mosaic said distributors are holding off on purchases because of delays in long-term contracts in China and India, which influences prices.

THE ANALYSIS: BMO Capital Markets analyst Joel Jackson said that the market "could get worse before it gets better" as demand for phosphate in India may not return for several months.

SHARE ACTION: Shares fell $1.96, or 3.9 percent, to $48.79 in midday trading. Its shares are at the low end of its 52-week trading range of $44.43 to $61.98.


Ebola Rising
LIMITED-TIME OFFER SUBSCRIBE NOW
 
blog comments powered by Disqus