A tough farm economy has meant lower fertilizer prices for Mosaic Co. for the past couple of years — and a sharp profit drop at the end of 2016 — but company officials said Tuesday that they see a slow turnaround taking shape.
The global fertilizer company based in Plymouth said it earned $12 million in the last three months of the year, down from $155 million in the fourth quarter of 2015. The company also cut its targeted annual dividend to 60 cents a share, down from $1.10.
“While we are confident the market bottom is behind us, the pace of improvement is expected to be gradual,” Chief Executive Joc O’Rourke said in a statement.
Adjusted for one-time costs, the company earned 26 cents a share in the quarter, which was 13 cents higher than analysts polled by Thomson Reuters were expecting.
Sales were $1.9 billion, down from $2.2 billion during the same period last year.
Operating earnings during the quarter were $74 million, down from $204 million a year ago. Officials said the lower earnings were driven primarily by lower potash and phosphate prices, and were offset partly by lower phosphate raw materials costs and effective cost management.
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