The Mosaic Company MOS
today released new historical segment financials. With Mosaic's acquisition of
Archer Daniels Midland's (ADM) distribution business in Brazil and Paraguay,
the Company will now manage and report a new International Distribution
segment. Beginning with the first quarter of 2015, Mosaic will report four
segments: Phosphates, Potash, International Distribution, and Corporate and
Other. The new Phosphates segment will split out manufacturing from
International Distribution. The Corporate and Other segment will contain
legacy Argentinean and Chilean businesses, as well as mark to market
adjustments on derivatives.
"The new disclosures we released today are expected to increase transparency
and improve peer benchmarking and business modeling," stated Rich Mack,
Mosaic's Executive Vice President and Chief Financial Officer. "These enhanced
disclosures provide additional data and metrics across all our businesses to
allow our owners and analysts to measure our strategic and financial progress.
The new segmentation also provides better visibility into our Phosphates
segment by separating it from our International Distribution segment."
New Performance Data and a PowerPoint Presentation describing the new
segmentation are available on Mosaic's website at www.mosaicco.com/investors.
The Company also announced an update of the near-term price, volume and gross
margin guidance reflecting the new segmentation. Finished phosphate volumes
that are manufactured by Mosaic and sold through International Distribution
will be accounted for in both segments. In the first quarter, Mosaic expects
about 200,000 tonnes will drive both manufacturing margins in the Phosphates
segment and distribution margins in the International Distribution segment.
Phosphates (New Segment)
Q1 Sales volume 2.1 to 2.3 million tonnes
Q1 DAP selling price $450 to $460 per tonne
Q1 Gross margin rate High teens
Q1 Operating rate 80 to 85 percent
2015 Sales Volumes 9 to 10 million tonnes
International Distribution (New Segment)
Q1 Sales volume 0.85 to 0.95 million tonnes
Q1 Gross margin per tonne $24 to $27 per tonne
2015 Sales volume 6 to 7 million tonnes
All other guidance remains unchanged.
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