Mosaic says sales suffer in downturn

Fertilizer maker Mosaic Co. said Monday that second- and third-quarter sales will be down on lower demand due to factors such as the global economic downturn and lower grain prices.

Mosaic also said it was withdrawing its 2009 fiscal year guidance for sales of phosphates and potash, citing the "uncertainties in the global economy."

In October, Mosaic said it expected phosphate sales of between 8 million to 9 million tons and potash sales of 8.2 million to 8.6 million tons. But it also announced plans to reduce phosphate production by 1 million tons through this month.

In a preview of results from the fiscal 2009 second quarter ended Nov. 30, Mosaic said sales volumes of phosphate for the quarter stood at 1.3 million tons, down 800,000 tons from the volume of the fiscal first quarter. Potash sales came in at 1.7 million tons.

Mosaic said it expected third-quarter sales volumes will also be soft, although it expects a strong recovery in the fiscal fourth quarter.

Shares of Mosaic fell $4.95, or 16 percent, to close at $25.40 Monday.