PLYMOUTH, Minn., April 25, 2012 /PRNewswire/ -- In advance of upcoming investor visits, The Mosaic Company (NYSE: MOS) announced today an update of the near-term market outlook for its Potash and Phosphates businesses.
Since the Company announced its fiscal fourth quarter guidance on March 28, 2012, domestic and international crop nutrient markets have strengthened significantly, meeting the upper end of management's initial expectations and resulting in an improved near-term volume outlook.
"Global demand for crop nutrients has increased sharply, driven by an early and strong spring season in North America, combined with increasing shipments to South America," said Jim Prokopanko, President and Chief Executive Officer. "We expect demand to continue to grow, and crop nutrients to remain affordable. We anticipate another year of high farm income in North America - the second highest on record - and strong farm economics around the world. Our long-term outlook for the business is positive."
In light of the rapid acceleration in demand, the Company believes fourth quarter fiscal 2012 volumes for both potash and phosphates will be in the upper end of the guidance ranges. As previously disclosed, these guidance ranges are:
- Potash: 1.7 to 2.2 million tonnes.
- Phosphates: 2.3 to 2.7 million tonnes.
The forecast continues to anticipate limited North American inventory re-stocking at the end of the spring application season.
All other guidance, including pricing and phosphates segment margin expectations, is unchanged.
About The Mosaic Company
The Mosaic Company is one of the world's leading producers and marketers of concentrated phosphate and potash crop nutrients. Mosaic is a single source provider of phosphate and potash fertilizers and feed ingredients for the global agriculture industry. More information on the Company is available at www.mosaicco.com.
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements include, but are not limited to, statements about future financial and operating results. Such statements are based upon the current beliefs and expectations of The Mosaic Company's management and are subject to significant risks and uncertainties. These risks and uncertainties include but are not limited to the predictability and volatility of, and customer expectations about, agriculture, fertilizer, raw material, energy and transportation markets that are subject to competitive and other pressures and economic and credit market conditions; the level of inventories in the distribution channels for crop nutrients; changes in foreign currency and exchange rates; international trade risks; changes in government policy; changes in environmental and other governmental regulation, including greenhouse gas regulation, implementation of the U.S. Environmental Protection Agency's numeric water quality standards for the discharge of nutrients into Florida lakes and streams or possible efforts to reduce the flow of excess nutrients into the Gulf of Mexico; further developments in judicial or administrative proceedings; difficulties or delays in receiving, increased costs of or challenges to necessary governmental permits or approvals; the effectiveness of the Company's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Florida or the Gulf Coast of the United States, including potential hurricanes or excess rainfall; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, or Canadian resources taxes and royalties; accidents and other disruptions involving Mosaic's operations, including brine inflows at its Esterhazy, Saskatchewan potash mine and other potential mine fires, floods, explosions, seismic events or releases of hazardous or volatile chemicals, as well as other risks and uncertainties reported from time to time in The Mosaic Company's reports filed with the Securities and Exchange Commission. Actual results may differ from those set forth in the forward-looking statements.
SOURCE The Mosaic Company