The Mosaic Company (MOS) has reported a 75.50 percent plunge in profit for the quarter ended Sep. 30, 2016. The company has earned $39.20 million, or $0.11 a share in the quarter, compared with $160 million, or $0.45 a share for the same period last year. Revenue during the quarter dropped 7.28 percent to $1,952.20 million from $2,105.50 million in the previous year period. Gross margin for the quarter contracted 500 basis points over the previous year period to 10.93 percent. Total expenses were 96.43 percent of quarterly revenues, up from 88.32 percent for the same period last year. That has resulted in a contraction of 811 basis points in operating margin to 3.57 percent.
Operating income for the quarter was $69.70 million, compared with $246 million in the previous year period.
"We expected improving market conditions in the second half of 2016 and this quarter’s results reflect improvement," said Joc O’Rourke, president and chief executive officer. "Both potash and phosphate prices strengthened in the quarter as pent-up demand materialized. While the fourth quarter is expected to reflect a normal seasonal slowdown, we see a more stable operating environment in 2017, starting the year with lower pipeline inventories and demand growth in both nutrients. At the same time, we are taking action to protect the balance sheet and reduce operating expenses."
Operating cash flow drops significantly
The Mosaic Company has generated cash of $944.90 million from operating activities during the nine month period, down 37.86 percent or $575.80 million, when compared with the last year period. The company has spent $1,012.40 million cash to meet investing activities during the nine month period as against cash outgo of $1,348.90 million in the last year period.
The company has spent $634.10 million cash to carry out financing activities during the nine month period as against cash outgo of $1,028.80 million in the last year period.
Cash and cash equivalents stood at $653.50 million as on Sep. 30, 2016, down 49.14 percent or $631.40 million from $1,284.90 million on Sep. 30, 2015.
Working capital drops significantly
The Mosaic Company has witnessed a decline in the working capital over the last year. It stood at $1,509.80 million as at Sep. 30, 2016, down 36.87 percent or $881.70 million from $2,391.50 million on Sep. 30, 2015. Current ratio was at 1.78 as on Sep. 30, 2016, down from 2.28 on Sep. 30, 2015.
Cash conversion cycle (CCC) has decreased to 31 days for the quarter from 71 days for the last year period. Days sales outstanding went down to 27 days for the quarter compared with 28 days for the same period last year.
Days inventory outstanding has decreased to 40 days for the quarter compared with 82 days for the previous year period. At the same time, days payable outstanding went down to 36 days for the quarter from 39 for the same period last year.
Debt moves up marginally
The Mosaic Company has witnessed an increase in total debt over the last one year. It stood at $4,100.40 million as on Sep. 30, 2016, up 1.09 percent or $44.20 million from $4,056.20 million on Sep. 30, 2015. Total debt was 23.75 percent of total assets as on Sep. 30, 2016, compared with 23.70 percent on Sep. 30, 2015. Debt to equity ratio was almost stable at 0.42 as on Sep. 30, 2016, when compared with the last year. 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
