The Mosaic Company (MOS) swung to a net loss for the quarter ended Mar. 31, 2017. The company has made a net loss of $0.90 million in the quarter, against a net profit of $256.80 million in the last year period. Revenue during the quarter dropped 5.73 percent to $1,578.10 million from $1,674 million in the previous year period. Gross margin for the quarter contracted 593 basis points over the previous year period to 8.21 percent. Total expenses were 98.09 percent of quarterly revenues, up from 90.24 percent for the same period last year. That has resulted in a contraction of 785 basis points in operating margin to 1.91 percent.
Operating income for the quarter was $30.10 million, compared with $163.40 million in the previous year period.
“Our results do not yet reflect improving potash and phosphate market conditions we anticipate to benefit from for the remainder of the year,” said Joc O’Rourke, President and Chief Executive Officer. “This quarter we experienced several operational challenges which are now largely behind us. Our constructive outlook hasn’t changed and we expect to see stronger earnings in the remainder of 2017.”
Operating cash flow drops significantly
The Mosaic Company has generated cash of $146 million from operating activities during the quarter, down 45.09 percent or $ 119.90 million, when compared with the last year period. The company has spent $245.60 million cash to meet investing activities during the quarter as against cash outgo of $273.80 million in the last year period.
Cash flow from financing activities was $102.20 million for the quarter as against cash outgo of $280 million in the last year period.
Cash and cash equivalents stood at $675.30 million as on Mar. 31, 2017, down 36.15 percent or $382.40 million from $1,057.70 million on Mar. 31, 2016.
Working capital drops significantly
The Mosaic Company has witnessed a decline in the working capital over the last year. It stood at $1,582.80 million as at Mar. 31, 2017, down 26.13 percent or $560 million from $2,142.80 million on Mar. 31, 2016. Current ratio was at 1.97 as on Mar. 31, 2017, down from 2.18 on Mar. 31, 2016.
Cash conversion cycle (CCC) has decreased to 51 days for the quarter from 103 days for the last year period. Days sales outstanding went down to 36 days for the quarter compared with 37 days for the same period last year.
Days inventory outstanding has decreased to 48 days for the quarter compared with 99 days for the previous year period. At the same time, days payable outstanding was almost stable at 33 days for the quarter, when compared with the previous year period.
Debt comes down marginally
The Mosaic Company has recorded a decline in total debt over the last one year. It stood at $4,153.90 million as on Mar. 31, 2017, down 1.38 percent or $58.10 million from $4,212 million on Mar. 31, 2016. Total debt was 24.30 percent of total assets as on Mar. 31, 2017, compared with 23.90 percent on Mar. 31, 2016. Debt to equity ratio was at 0.43 as on Mar. 31, 2017, up from 0.42 as on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
