TAMPA, Fla.--(BUSINESS WIRE)--The Mosaic Company (NYSE: MOS) today announced that it intends to reduce fertilizer production until markets improve. The company plans to decrease phosphate production at its Central Florida facilities by 150,000 tonnes per month, in addition to the 500,000 tonne reduction it implemented in the second half of 2019 primarily in Louisiana, and will continue to operate at lower rates in its Canadian potash business. Production in both phosphates and potash will return to full rates when required to meet customer needs.
“A third consecutive disappointing application season in North America has led to continuing high inventories and price weakness. Mosaic will not produce at high rates when we are unable to realize reasonable prices,” said President and CEO Joc O’Rourke. “We believe our extended production curtailments will contribute to balancing the global supply-and-demand picture as we move into 2020. With fertilizer-depleted soils and rising agricultural commodity prices, we continue to expect robust demand and strong business conditions in the year ahead.”
The company expects its potash and phosphates shipment volumes for the fourth quarter to be modestly below its most recent guidance ranges. In addition, Phosphates segment gross margin per tonne is expected to fall significantly below the guidance range as a result of the low volumes and realized prices.
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 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 the anticipated benefits or strategic plans and other statements about anticipated future financial, production and operating performance. 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: difficulties with realization of the benefits or strategic plans; actual costs of various items differing from management’s current estimates, price and demand volatility for our products, other changes in market conditions, accidents and disruptions, including potential mine fires, floods, explosions, seismic events, sinkholes or releases of hazardous or volatile chemicals; changes in foreign currency and exchange rates; international trade risks and other risks associated with Mosaic's international operations, changes in government policy, changes in environmental and other governmental regulation, 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.