Green Bay Facility

October 5, 2009 - Plymouth-based fertilizer giant Mosaic reported sharply lower profits for the first quarter amid a global sales slowdown of crop nutrients.  In a release issued after trading closed Monday, the company reported sales of $1.46 billion, or 66 percent below last year's first quarter sales of $4.32 billion. Earnings of $100.6 million for the quarter ending Aug. 31 were 92 percent below last year's $1.18 billion and amounted to 23 cents per share.  Analysts had expected earnings of 35 cents per share on sales of $1.54 billion.  Sharp increases in fertilizer costs beginning last year, along with falling prices for some key agriculture commodities and the global recession, have thrown fertilizer sales into a tailspin. Mosaic's industry rival, PotashCorp. of Saskatchewan, Inc., has scaled back its financial guidance several times this year.   Mosaic, which produces fertilizer ingredients potash and phosphate, earlier this year declined to issue guidance "until market conditions normalize" on significant aspects of its business, including potash sales volumes and selling price.   Cargill, the agribusiness titan and majority owner of Mosaic, warned in August that earnings had dropped at Mosaic. That same month, Mosaic officials said potash sales had fallen 35 to 40 percent, and phosphate sales were off 15 to 20 percent.  The company's long-term outlook remains positive because global demand for food, and thus the fertilizer needed to grow it, remains strong and rising. Projections of both population and calorie consumption show that farmers around the world must sharply increase their production to feed the planet.  "Phosphate fundamentals have improved," said James T. Prokopanko, company president and CEO. "The potash market is evolving and we expect strong demand in calendar year 2010 for both nutrients."