CHICAGO, Ill. (Reuters) — Fertilizer company Mosaic Co. says third-quarter profit rose 26 percent, driven by higher potash and phosphate volumes.
It expects a good spring as farmers aim to maximize output to capitalize on high grain prices.
“Farmers are planning for an abundant crop,” said chief executive officer Jim Prokopankos.
He added that a cool spring might reduce corn area from Mosaic’s estimate of 96 million acres.
Quarterly net profit rose to $344.6 million, or 81 cents a share, from $273.3 million, or 64 cents a share, a year earlier. Net sales rose two percent to $2.24 billion.
Analysts expected earnings per share of 88 cents and revenue of $2.29 billion, according to Thomson Reuters business information group.
The world’s largest producer of finished phosphate products and a major potash miner recently announced a $1 billion, four-year investment in a phosphate project with partners in Saudi Arabia.
Mosaic also intends to buy back shares this year. About 129 million shares now held by Cargill shareholders, which amounts to 30 percent of Mosaic shares, will automatically convert to common shares starting in late November unless they are sold earlier.
