The Mosaic Company Reports Fiscal Year 2010 Second Quarter Results

Jan 05, 2010, 16:15 ET from The Mosaic Company

PLYMOUTH, Minn., Jan. 5 /PRNewswire-FirstCall/ -- The Mosaic Company (NYSE: MOS) announced today net earnings of $107.8 million, or $0.24 per diluted share, for the second quarter ended November 30, 2009. These results compare with net earnings of $959.8 million, or $2.15 per share, for the second quarter ended November 30, 2008.

KEY ITEMS

  • Phosphate demand rebounded with increased sales prices and sales volumes
    • The average diammonium phosphate (DAP) selling price was $287 per tonne, up slightly from the first quarter of fiscal 2010
    • Phosphates sales volumes increased 15% sequentially to 3.3 million tonnes (including changes to reflect the Company's segment reporting change)
  • Potash sales volumes increased 30% compared to the first quarter of fiscal 2010 to 1.0 million tonnes and the average muriate of potash (MOP) selling price was $370 per tonne
  • The Company recorded a $51.2 million pre-tax charge, or $0.08 per share, primarily related to the write-off of certain assets in the Phosphates segment
  • Foreign currency transaction losses were $22.6 million, or $0.04 per share, compared to a gain of $32.3 million, or $0.05 per share a year ago
  • A special dividend of $1.30 per share was declared in October, and paid shortly after the end of the quarter
  • In the second quarter of fiscal 2009, the Company recorded a pre-tax gain on the sale of its interest in Saskferco of $673.4 million, or $1.03 per share

Mosaic had net sales in the second quarter of fiscal 2010 of $1.7 billion, a decrease of $1.3 billion, or 43%, compared to the same period a year ago.

Mosaic's gross margin for the second quarter of fiscal 2010 was $307.0 million, or 18% of net sales, compared with $773.7 million, or 26% of net sales, a year ago. Second quarter operating earnings were $200.1 million compared with $682.0 million a year ago. Mosaic's second quarter results were impacted by lower potash and phosphate selling prices combined with lower potash sales volumes compared with the prior year quarter. Reflecting improved market conditions, Phosphates sales volumes were 90% higher in the quarter compared to a year ago. Potash sales volumes declined 40% compared with a year ago as purchasing activity remained soft.

"Our balanced nutrient portfolio of phosphates and potash is proving invaluable. Phosphate demand is rebounding nicely, and we anticipate positive comparative volume trends over the balance of fiscal 2010. Although potash orders remained soft, sales activity picked up toward the end of the quarter and we see this trend continuing into calendar 2010," said Jim Prokopanko, Mosaic's President and Chief Executive Officer.

Underscoring the Company's financial strength and confidence in long-term fundamentals, Mosaic announced a special dividend of approximately $580 million, or $1.30 per share, in October 2009. The dividend was paid on December 3, 2009 from cash on hand. Following this distribution cash and cash equivalents totaled approximately $2.0 billion.

Segment Realignment

On November 30, 2009, Mosaic announced a realignment of its business segments to more clearly reflect the Company's evolving business model. The realignment includes moving from three to two business segments by combining the Offshore segment with the Phosphates segment. The Company initiated these changes to further align its expansive global distribution assets with its North American production assets. The segment results announced today for the prior year have been recast to reflect this realignment. The Company's website includes realigned segment data for the previous eight quarters.

Phosphates

Net sales in the Phosphates segment were $1.3 billion for the second quarter, a decline from $2.0 billion a year ago but up sequentially from $1.2 billion in the first quarter of fiscal 2010. Phosphates' second quarter gross margin was $113.2 million, or 9% of net sales, compared with $199.4 million, or 10% of net sales, for the same period a year ago. Operating earnings were $29.0 million, a decline from $135.9 million in the same period last year. Operating earnings in this year's second quarter include a pre-tax charge of $51.2 million associated with the permanent closure and write-off of certain assets in the Company's phosphate business. Gross margin and operating earnings in last year's second quarter included a $287.7 million inventory valuation write-down. The decline in operating earnings in the second quarter of fiscal 2010 compared with a year ago was primarily due to the effects of lower selling prices partially offset by higher sales volume and lower raw material costs for sulfur and ammonia. Prior year segment results have been recast to reflect the realignment of the Company's business segments.

The average second quarter DAP selling price, FOB plant, was $287 per tonne, compared to $1,086 a year ago and $278 per tonne in the first quarter of fiscal 2010.

Phosphates segment sales volumes were higher than a year ago at 3.3 million tonnes and improved 15% sequentially from the first quarter of fiscal 2010. International sales volumes of crop nutrients increased over one million tonnes from year ago levels, primarily due to strong demand from India.

Mosaic's North American phosphate production level was 2.0 million tonnes during the second quarter, an increase of 49% from year ago levels in response to increased demand.

"Phosphate sales volumes have returned to more normal levels," stated Prokopanko. "We look for improved gross margins in calendar 2010, though margin expansion may be constrained by higher raw material costs and the normal lag between our average realized prices and prevailing market prices."

Potash

Net sales in the Potash segment totaled $414.3 million for the fiscal 2010 second quarter, compared to net sales of $973.2 million a year ago, and $333.3 million in the first quarter. The Potash segment's gross margin declined to $179.9 million in the second quarter, or 43% of net sales, compared with $574.9 million a year ago, or 59% of net sales. Operating earnings were $150.6 million in the second quarter, compared to $547.5 million a year ago and $99.3 million for the first quarter. Operating earnings in the quarter were impacted by a sharp decline in sales volumes, a decrease in the average MOP selling price and the effects of significantly lower production levels, partially offset by lower Canadian resource taxes and royalties.

The average second quarter MOP selling price, FOB plant, was $370 per tonne compared to $529 a year ago and $354 per tonne in the first quarter of fiscal 2010. The lower average MOP selling price compared to a year ago was primarily the result of a decline in overall demand for MOP.

Reflecting lower demand, the Potash segment's total sales volume was 1.0 million tonnes for the second quarter, a decline of 0.7 million tonnes from a year ago, but up from 0.8 million tonnes for the first quarter of fiscal 2010. Potash production was reduced 43% to 1.1 million tonnes from year ago levels in response to weak demand in order to more effectively manage inventories. Mosaic continues to operate at lower production rates and will do so until demand improves.

Other

A foreign currency transaction loss of $22.6 million was recorded for the second quarter compared to a gain of $32.3 million for the same period a year ago. This loss is the result of the effect of a weakening U.S. dollar relative to the Canadian dollar on significant U.S. dollar denominated intercompany receivables and cash held by our Canadian affiliates.

Income tax expense was $50.4 million in the second quarter resulting in an effective tax rate of 29%, compared to $451.2 million, or an effective tax rate of 33%, for the same period last year.

A loss of $11.8 million was recorded in the second quarter for total equity earnings in non-consolidated subsidiaries, compared with earnings of $28.7 million for the same period a year ago. The reduction in equity earnings is primarily the result of weak results from Fosfertil S.A. due to a decline in phosphate selling prices, higher raw material costs and an unfavorable foreign exchange impact.

Cash flow provided by operating activities in the second quarter of fiscal 2010 was $174.8 million compared to $386.5 million a year ago. The decline in cash flow from operations was primarily due to lower net earnings. Mosaic's total debt as of November 30, 2009 was $1.4 billion, which was comparable to a year ago.

Year-to-Date

For the six months ended November 30, 2009, net sales were $3.2 billion, a decrease of 57% from $7.3 billion reported a year ago. Year-to-date operating earnings were $334.3 million compared to $2.2 billion for the same period a year ago. Year-to-date selling, general and administrative (SG&A) expenses were $164.3 million compared to $166.8 million for the same period in fiscal 2009. A foreign currency transaction loss of $9.5 million was recorded for the first half of fiscal 2010 compared with a gain of $119.0 million for the same period a year ago. Unrealized mark-to-market derivative gains, primarily on natural gas contracts, included in cost of goods sold, totaled $39.5 million compared to losses of $134.9 million the prior year. Equity earnings in non-consolidated entities was a loss of $9.3 million compared with income of $88.5 million last year. The first half of fiscal 2009 also included a $673.4 million gain on the sale of Mosaic's interest in Saskferco Products ULC in October 2008.

Market Outlook

The phosphate market began to recover during the quarter, especially in Asia and the Americas, as distributors purchased crop nutrients to meet farmer demand. Since the end of the second quarter, the average price for DAP has continued to strengthen. As of early January, prevailing market DAP selling prices, FOB plant, approximate $370 per tonne (or $380 per tonne FOB Tampa).

While the potash market has been soft for most of calendar 2009, it is beginning to gain traction with the recent settlement of contracts in China which has afforded the marketplace price discovery. In addition, recent increased potash application rates in the Americas driven by nutrient depleted soils and strong grain and oilseed prices bodes well for improved market demand for potash during calendar 2010.

The steadily improving global economy is encouraging and will have positive impacts on agriculture. This is especially true in Asia, where population and income growth are leading to increased investments in crop nutrients.

"We are pleased to see nutrient markets beginning to rebound worldwide. The demand for phosphate is growing, and we are confident potash demand will emerge as well as farmers increase nutrient applications," said Prokopanko. "As we come out of this downturn, we are confident in the long-term nutrient demand outlook. Mosaic is ideally and uniquely positioned as a leading supplier of both potash and phosphate crop nutrients, and we believe we will be a prime beneficiary of a market recovery."

Financial Guidance

Total sales volumes for the Phosphates segment are expected to range from 2.2 to 2.6 million tonnes for the third quarter of fiscal 2010. Historically, the Company's shipments in its third fiscal quarter are the lowest due to seasonality. Mosaic's realized DAP price, FOB plant, for the third quarter of fiscal 2010 is estimated to be $310 to $350 per tonne.

Mosaic is continuing its policy of not providing financial guidance on Potash sales volumes or MOP selling price until market conditions normalize.

Capital spending for fiscal 2010 is expected to range from $1.0 billion to $1.2 billion. Mosaic continues to execute against its multi-year potash expansion plan as well as investing substantial funds to further improve operating performance of its existing plants and mines.

SG&A is estimated to range from $350 million to $370 million in fiscal 2010 and the effective income tax rate is estimated in the high 20% range for the year.

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.

Mosaic will conduct a conference call on Wednesday, January 6, 2010 at 11:00 a.m. EST to discuss second quarter earnings results. Presentation slides and a simultaneous audio webcast of the conference call may be accessed through Mosaic's website at www.mosaicco.com/investors. Additionally, the conference call-in number is 888-679-8035 and the passcode is 78088901. This webcast will be available up to one year from the time of the earnings call.

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 the effects of the current economic and financial turmoil; changes in 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; difficulties or delays in receiving, or increased costs of, necessary governmental permits or approvals; the effectiveness of our processes for managing our 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 asset retirement, environmental remediation, reclamation or other environmental regulation differing from management's current estimates; 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.


                      Condensed Consolidated Statements of Earnings
                        (in millions, except per share amounts)
    The Mosaic Company                                            (unaudited)
    ------------------                                            -----------

                          Three months ended             Six months ended
                              November 30                  November 30
                              -----------                  -----------
                           2009             2008       2009              2008
                           ----             ----       ----              ----

    Net sales          $1,709.7         $3,006.5   $3,166.9          $7,329.0
    Cost of goods
     sold               1,402.7          1,939.3    2,637.7           4,613.2
    Lower of cost or
     market write-
     down                     -            293.5          -             293.5
                            ---            -----        ---             -----
    Gross margin          307.0            773.7      529.2           2,422.3

    Selling, general
     and
      administrative
       expenses            82.9             76.8      164.3             166.8
    Other operating
     expenses              24.0             14.9       30.6              24.6
                           ----             ----       ----              ----
    Operating
     earnings             200.1            682.0      334.3           2,230.9

    Interest
     expense, net          11.9              8.3       26.8              18.9
    Foreign currency
     transaction
     (gain) loss           22.6            (32.3)       9.5            (119.0)
    Gain on sale of
     equity
     investment               -           (673.4)         -            (673.4)
    Other (income)         (5.6)            (4.4)      (6.0)             (5.9)
                           ----             ----       ----              ----

    Earnings from
     consolidated
      companies before
       income taxes       171.2          1,383.8      304.0           3,010.3
    Provision for
     income taxes          50.4            451.2       83.2             948.9
                           ----            -----       ----             -----

    Earnings from
     consolidated
     companies            120.8            932.6      220.8           2,061.4
    Equity in net
     earnings (loss)
     of nonconsolidated
     companies            (11.8)            28.7       (9.3)             88.5
                          -----             ----       ----              ----
    Net earnings
     including non-
     controlling
     interests            109.0            961.3      211.5           2,149.9
    Less: Net
     earnings
     attributable to
     non-
     controlling
     interests             (1.2)            (1.5)      (3.1)             (5.4)
                           ----             ----      ----               ----
    Net earnings
     attributable to
     Mosaic (a)          $107.8           $959.8     $208.4          $2,144.5
                         ======           ======     ======          ========

    Diluted net
     earnings per
     share
     attributable to
     Mosaic (a)           $0.24            $2.15      $0.47             $4.81
                          =====            =====      =====             =====

    Diluted weighted
     average number
     of
      shares
       outstanding        446.5            446.1      446.4             446.3

    (a) Mosaic adopted SFAS No. 160 "Noncontrolling Interest in
        Consolidated Financial Statements," effective June 1, 2009, which,
        among other things, changed the presentation format and certain
        captions of the Consolidated Statement of Earnings and Consolidated
        Balance Sheet. Mosaic uses the captions recommended by this standard
        in its Condensed Consolidated Financial Statements, such as "Net
        earnings attributable to Mosaic" and "Diluted net earnings per share
        attributable to Mosaic." However, in the preceding release Mosaic
        has shortened this language to "net earnings" and "earnings per
        share," respectively.


                    Condensed Consolidated Balance Sheets
              (in millions, except share and per share amounts)

    The Mosaic Company                                             (unaudited)
    ------------------                                             -----------

                                                          November 30   May 31
                                Assets                         2009      2009
                                                               ----      ----
    Current assets:
         Cash and cash equivalents                         $2,648.1  $2,703.2
         Receivables, net                                     579.5     597.6
         Inventories                                          969.1   1,125.9
         Deferred income taxes                                187.4     205.4
         Other current assets                                 627.2     675.7
                                                              -----     -----
                 Total current assets                       5,011.3   5,307.8
         Property, plant and equipment, net                 5,157.9   4,899.3
         Investments in nonconsolidated
          companies                                           389.9     357.8
         Goodwill                                           1,756.6   1,734.1
         Other assets                                         380.9     377.2
                                                              -----     -----
                 Total assets                             $12,696.6 $12,676.2
                                                          ========= =========

                 Liabilities and Stockholders' Equity
    Current liabilities:
         Short-term debt                                     $140.2     $92.7
         Current maturities of long-term debt                  16.0      43.3
         Accounts payable and accrued
          liabilities                                       1,640.0   1,093.4
         Accrued income taxes                                     -     327.6
         Deferred income taxes                                 71.6      64.8
                                                               ----      ----
                 Total current liabilities                  1,867.8   1,621.8
         Long-term debt, less current
          maturities                                        1,250.2   1,256.5
         Deferred income taxes                                471.1     456.6
         Other noncurrent liabilities                         854.6     826.1

    The Mosaic Company's Stockholders'
     equity:
    Preferred stock, $0.01 par value,
             15,000,000 shares authorized, none
              issued and outstanding as of
             November 30, 2009 and May 31, 2009                   -         -
    Common stock, $0.01 par value,
     700,000,000 shares authorized:

    Class B common stock, none issued and
     outstanding as of November 30, 2009
     and May 31, 2009                                             -         -

    Common stock, 445,052,620 and
     444,513,300 shares issued and
     outstanding as of November 30, 2009
     and May 31, 2009, respectively                             4.5       4.4
    Capital in excess of par value                          2,506.3   2,483.8
    Retained earnings                                       5,331.3   5,746.2
    Accumulated other comprehensive
     income                                                   384.1     258.6
                                                              -----     -----
                 Total Mosaic stockholders' equity          8,226.2   8,493.0
    Non-controlling interests                                  26.7      22.2
                                                               ----      ----
                 Total stockholders' equity                 8,252.9   8,515.2
                                                            -------   -------
                 Total liabilities and stockholders'
                  equity                                  $12,696.6 $12,676.2
                                                          ========= =========


                  Condensed Consolidated Statements of Cash Flows
                     (in millions, except per share amounts)
    The Mosaic Company                                       (unaudited)
    ------------------                                       -----------

                                   Three months ended    Six months ended
                                      November 30          November 30
                                      -----------          -----------
    Cash Flows from                  2009      2008      2009      2008
     Operating Activities            ----      ----      ----      ----

      Net earnings
       including non-
       controlling
       interests                    $109.0    $961.3    $211.5  $2,149.9
      Adjustments to
       reconcile net
       earnings
       including non-
        controlling
        interests to
      net cash provided by
       operating
       activities:
         Depreciation,
          depletion and
          amortization               138.9      89.4     231.0     177.1
         Lower of cost or
          market write-down              -     293.5         -     293.5
         Deferred income taxes        23.3     149.3      34.9     164.6
    Equity in net loss
     (earnings) of
     nonconsolidated
     companies, net of
     dividends                        11.8     (29.1)      9.3     (56.8)
         Unrealized (gain)
          loss on derivatives        (28.9)      8.6     (67.3)    125.8
         Gain on sale of
          equity investment              -    (673.4)        -    (673.4)
         Proceeds from
          Saskferco note
          receivable                     -      51.1         -      51.1
         Other                        13.3       2.1      34.3      17.2
      Changes in assets and
       liabilities:
         Receivables, net            (96.5)    577.6      15.0      56.6
         Inventories, net             77.8      (1.9)    156.7    (592.1)
         Other current assets          1.7    (231.3)     10.6    (286.4)
         Accounts payable             34.8    (476.2)    111.8    (202.3)
         Accrued liabilities        (121.5)   (357.7)   (421.3)   (219.5)
         Other noncurrent
          liabilities                 11.1      23.2      20.7     (57.3)
                                      ----      ----      ----     -----
            Net cash provided by
             operating activities    174.8     386.5     347.2     948.0
      Cash Flows from
       Investing Activities
         Capital expenditures       (190.6)   (223.2)   (426.8)   (410.1)
         Proceeds from sale of
          equity investment              -     745.7         -     745.7
         Proceeds from sale of
          business                    12.9         -      12.9         -
         Restricted cash              22.8     (31.1)     22.8     (32.3)
         Other                         0.3         -       0.4       0.3
                                       ---       ---       ---       ---
            Net cash (used in)
             provided by
             investing activities   (154.6)    491.4    (390.7)    303.6
      Cash Flows from
       Financing Activities
         Payments of short-
          term debt                  (57.9)    (51.8)   (121.1)   (193.3)
         Proceeds from
          issuance of short-
          term debt                   90.8      53.4     168.5     172.0
         Payments of long-
          term debt                  (17.7)    (67.3)    (35.1)   (101.1)
         Proceeds from
          issuance of long-
          term debt                      -         -       0.6       0.1
         Payment of tender
          premium on debt                -       0.2      (5.5)        -
         Proceeds from stock
          options exercised            2.8       3.0       5.0       4.1
         Dividend paid to
          minority shareholder        (0.8)     (0.4)     (0.9)     (1.8)
         Excess tax benefits
          related to stock
          option exercises            (0.3)      2.0       0.1       4.8
         Cash dividends paid         (22.6)    (22.2)    (44.8)    (44.4)
                                     -----     -----     -----     -----
            Net cash used in
             financing activities     (5.7)    (83.1)    (33.2)   (159.6)
      Effect of exchange
       rate changes on cash           34.9    (172.9)     21.6    (241.1)
                                      ----    ------      ----    ------
      Net change in cash
       and cash equivalents           49.4     621.9     (55.1)    850.9
      Cash and cash
       equivalents -
       beginning of period         2,598.7   2,189.7   2,703.2   1,960.7
                                   -------   -------   -------   -------
      Cash and cash
       equivalents -end of
       period                     $2,648.1  $2,811.6  $2,648.1  $2,811.6
      ====================        ========  ========  ========  ========

      Supplemental
       Disclosure of Cash
       Flow Information:

      Cash paid during the
       period for:
         Interest (net of
          amount capitalized)           $-      $0.5     $32.8     $47.9
         Income taxes (net of
          refunds)                   103.5     567.8     374.5     760.5


                   Condensed Consolidated Financial Highlights

    The Mosaic Company                                (dollars in millions)
    ------------------                                ---------------------

                        Three months ended                  Increase/
                           November 30                     (Decrease)
                           -----------                     ----------
                       2009          2008 (d)        Amount             %
                       ----          --------        ------            ---

    Net sales:
      Phosphates (a) $1,328.0          $2,022.6     $(694.6)          (34%)
      Potash            414.3             973.2      (558.9)          (57%)
      Corporate/
       Other (b)        (32.6)             10.7       (43.3)           NM
                        -----              ----       -----         ------
                     $1,709.7          $3,006.5   $(1,296.8)          (43%)
                     ========          ========   =========          =====

    Gross margin:
      Phosphates (c)   $113.2            $199.4      $(86.2)          (43%)
      Potash            179.9             574.9      (395.0)          (69%)
      Corporate/
       Other (b) (c)     13.9              (0.6)       14.5            NM
                         ----              ----        ----        -------
                       $307.0            $773.7     $(466.7)          (60%)
                       ======            ======     =======          =====

    Operating
     earnings
     (loss):
      Phosphates (c)    $29.0            $135.9     $(106.9)          (79%)
      Potash            150.6             547.5      (396.9)          (72%)
      Corporate/
       Other (b) (c)     20.5              (1.4)       21.9            NM
                         ----              ----        ----        -------
                       $200.1            $682.0     $(481.9)          (71%)
                       ======            ======     =======          =====

    Depreciation,
     depletion and
     amortization:
      Phosphates (e)   $103.1             $56.6       $46.5             82%
      Potash             33.1              30.2         2.9             10%
      Corporate/
       Other              2.7               2.6         0.1              4%
                          ---               ---         ---            ---
                       $138.9             $89.4       $49.5             55%
                       ======             =====       =====            ===


                         Six  months ended                 Increase/
                            November 30                    (Decrease)
                            -----------                    ----------
                        2009          2008 (d)      Amount              %
                        ----          --------      ------             ---

    Net sales:
      Phosphates (a) $2,522.5         $5,351.0    $(2,828.5)           (53%)
      Potash            747.6          1,949.6     (1,202.0)           (62%)
      Corporate/Other
       (b)             (103.2)            28.4       (131.6)            NM
                       ------             ----       ------          ------
                     $3,166.9         $7,329.0    $(4,162.1)           (57%)
                     ========         ========    =========           =====

    Gross margin:
      Phosphates (c)   $227.6         $1,331.9    $(1,104.3)           (83%)
      Potash            304.5          1,078.1       (773.6)           (72%)
      Corporate/Other
       (b) (c)           (2.9)            12.3        (15.2)          (124%)
                         ----             ----        -----          ------
                       $529.2         $2,422.3    $(1,893.1)           (78%)
                       ======         ========    =========           =====

    Operating
     earnings
     (loss):
      Phosphates (c)    $75.5         $1,193.1    $(1,117.6)           (94%)
      Potash            249.9          1,025.3       (775.4)           (76%)
      Corporate/Other
       (b) (c)            8.9             12.5         (3.6)           (29%)
                          ---             ----         ----           -----
                       $334.3         $2,230.9    $(1,896.6)           (85%)
                       ======         ========    =========           =====

    Depreciation,
     depletion and
     amortization:
      Phosphates (e)   $163.0           $109.9        $53.1             48%
      Potash             62.8             62.1          0.7              1%
      Corporate/Other     5.2              5.1          0.1              2%
                          ---              ---          ---            ---
                       $231.0           $177.1        $53.9             30%
                       ======           ======        =====            ===




    (a)  Includes PhosChem sales and cost of goods sold for its other
         member of $77 million and $324 million for the three months ended
         November 30, 2009 and 2008, and $188 million and $613 million for
         the six months ended November 30, 2009 and 2008, respectively.
         PhosChem is a consolidated subsidiary of Mosaic.
    (b)  Includes elimination of intersegment sales.
    (c)  The Phosphates segment impact of lower of cost or market
         inventory write-down was $287.7 million for the three and six
         months ended November 30, 2008.  In addition, the Corporate/Other
         segments includes a $5.8 million lower of cost or market inventory
         write-down related to nitrogen products for the three and six
         months ended November 30, 2008.
    (d)  Adjusted to reflect the realignment of the Company's reportable
         business segments in which the former Offshore segment has been
         included in the Phosphates segment.
    (e)  Includes accelerated depreciation of $39.8 million associated
         with the permanent closure of previously idled facilities and
         equipment in our Phosphates operations for the three and six months
         ended November 30, 2009.


                                                               Key Statistics
    The Mosaic Company                                            (unaudited)
    ------------------                                            -----------

                                     Three months ended         Increase/
                                        November 30            (Decrease)
                                        -----------            ----------
                                    2009            2008  Amount           %
                                    ----            ----  ------          ---

    Sales volumes
      (000 tonnes):
        Phosphates Segment
      Phosphates
      Crop
       Nutrients
       (a):       North America    559             366      193           53%
                  International  1,646             602    1,044          173%
      Crop Nutrient Blends
       (b)                         692             406      286           70%
      Feed Phosphates              161             125       36           29%
      Other (c)                    279             254       25           10%
                                   ---             ---      ---          ---
        Total Phosphates
         Segment Tonnes (a)      3,337           1,753    1,584           90%
                                 =====           =====    =====          ===

        Potash Segment
      Potash
      Crop
       Nutrients
       (d):        North America   299             524     (225)        (43%)
                   International   524             921     (397)        (43%)
      Non agricultural             207             277      (70)        (25%)
                                   ---             ---      ---        -----
        Total Potash Segment
         Tonnes                  1,030           1,722     (692)        (40%)
                                 =====           =====     ====        =====

    Production volumes
     (North America)
      (000 tonnes):
      Phosphates                 1,982           1,332      650           49%
      Potash                     1,106           1,950     (844)        (43%)

    Average selling price
     per
      metric tonne:
      DAP (e)                     $287          $1,086    $(799)        (74%)
      Blends (b) (f)               405             711     (306)        (43%)
      MOP (e)                      370             529     (159)        (30%)

    Average price for key
     raw materials:

      Ammonia (tonne)
       (Central Florida) (g)      $313            $810    $(497)        (61%)
      Sulfur (long ton)
       (North America)              57             532     (475)        (89%)


    Canadian resource
     taxes and royalties
     (h)                           $15            $142    $(127)        (89%)

                                    Six months ended          Increase/
                                      November 30            (Decrease)
                                      -----------            ----------
                                  2009           2008   Amount           %
                                  ----           ----   ------          ---

    Sales volumes
      (000 tonnes):
        Phosphates Segment
      Phosphates
      Crop Nutrients
       (a):        North America 1,242           1,145      97            8%
                   International 2,807           1,696   1,111           66%
      Crop Nutrient Blends (b)   1,394           1,137     257           23%
      Feed Phosphates              311             311       -            0%
      Other (c)                    473             535     (62)         (12%)
                                   ---             ---     ---         -----
        Total Phosphates Segment
         Tonnes (a)              6,227           4,824   1,403           29%
                                 =====           =====   =====           ===

        Potash Segment
      Potash
      Crop Nutrients
       (d):        North America   408           1,070    (662)         (62%)
                   International 1,032           2,011    (979)         (49%)
      Non agricultural             385             538    (153)         (28%)
                                   ---             ---    ----         -----
        Total Potash
         Segment Tonnes          1,825           3,619  (1,794)         (50%)
                                 =====           =====  ======         =====

    Production volumes (North
     America)
      (000 tonnes):
      Phosphates                 3,799           3,416     383           11%
      Potash                     1,876           3,856  (1,980)         (51%)

    Average selling price per
      metric tonne:
      DAP (e)                     $283          $1,049   $(766)         (73%)
      Blends (b) (f)               403             794    (391)         (49%)
      MOP (e)                      363             508    (145)         (29%)

    Average price for key raw
     materials:

      Ammonia (tonne) (Central
       Florida) (g)               $274            $669   $(395)         (59%)
      Sulfur (long ton) (North
       America)                     50             552    (502)         (91%)


    Canadian resource taxes and
     royalties (h)                 $32            $311   $(279)         (90%)

    (a)  Phosphates volumes represent dry product tonnes.  Excludes
         tonnes sold by PhosChem for its other member.
    (b)  The average product mix in our Blends (by volumes) contains
         approximately 50% phosphate, 25% potash and 25% nitrogen, although
         this mix can differ based on seasonal and other factors.
    (c)  Other volumes are primarily single superphosphate, potash and
         urea sold in countries outside North America.
    (d)  Potash volumes include intersegment sales, and exclude tonnes
         mined under a third party tolling arrangement.
    (e)  FOB Plant, sales to unrelated parties.
    (f)  FOB destination
    (g)  Delivered Tampa, Florida
    (h)  Amounts in millions of U.S. dollars


SOURCE The Mosaic Company



RELATED LINKS

http://www.mosaicco.com