Mosaic Co. swung to a net loss of US$233.1 million, or a loss of 60 cents per share, for the second quarter, down from a year-ago net profit of US$67.9 million, or 18 cents per share, due to unprecedented wet weather in the Midwest weighing on its North American spring fertilizer sales volumes and phosphate margins.
Mosaic President and CEO Joc O'Rourke said that due to the wet weather in the first half, "strong price increases in grains together with depleted soil nutrients in North America are expected to drive fertilizer applications significantly higher this fall."
The company said Aug. 6 that it is temporarily idling its Colonsay potash mine in Canada to lower costs and expects to resume full operations in August at its Tapira and Araxa phosphate mines in Brazil.
Net sales for the quarter were US$2.18 billion, down from US$2.21 billion in the second quarter of 2018. Results included a US$284 million noncash charge for the permanent closure of the company's Plant City phosphate facility.
The company posted a US$241.9 million operating loss, compared operating profit of US$196.3 million a year earlier. Adjusted EBITDA for the quarter was US$349 million, falling from US$480 million a year earlier.
Mosaic cut its full-year adjusted EBITDA guidance to between US$1.8 billion and US$2.0 billion due to weaker sales volumes in the first half.
Capital expenditures for the quarter totaled $294.9 million, up from US$201.1 million in the second quarter of 2018.
Phosphate sales fell to 2.2 million tonnes, from 2.3 Mt in the prior-year quarter, while potash sales were down to 2.2 Mt from 2.4 Mt. Sales volumes from Mosaic Fertilizantes decreased to 2.1 Mt from 1.8 Mt.
For the first half, the company swung to a net loss of US$102.3 million from a net profit of US$110.2 million a year ago, while net sales dipped to US$4.08 billion from US$4.14 billion.