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5 Crucial Things The Mosaic Company Management Wants You to Know

By Neha Chamaria – Mar 14, 2016 at 6:10PM

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Find out what Mosaic management has to say about margins, shareholder returns, and acquisition.

Mosaic is among the world's largest fertilizer companies. Source: Mosaic analyst day presentation, March 2015.

The Mosaic Company (MOS 1.13%) sprang a surprise when it reported flat net income for 2015 at a time when peers such as PotashCorp (POT) and CF Industries Holdings (CF 1.39%) saw their profits tumble. While declining nutrient prices hurt every fertilizer company, Mosaic's focus on phosphate, demand and prices for which was more resilient than other nutrients, coupled with stringent cost control helped it weather the storm. Meanwhile, PotashCorp and CF Industries bore the brunt of slumping potash and nitrogen prices during the second half of 2015.

However, that doesn't mean that Mosaic isn't facing challenges. In fact, it announced plans to curtail phosphate production last month in the wake of volatility in nutrient prices.

So will Mosaic be able to maintain its margins and dividends during these uncertain times? With phosphate markets losing steam, is the company's acquisition of CF Industries' phosphate business proving to be a wrong move? The answers to these critical questions were hidden in Mosaic's recent earnings call. If you missed it, take a look at the following slideshow to find out the surprising answers.

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Neha Chamaria has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Mosaic Stock Quote
Mosaic
MOS
$49.65 (1.13%) $0.55
Potash Corporation of Saskatchewan Inc. Stock Quote
Potash Corporation of Saskatchewan Inc.
POT
CF Industries Holdings Stock Quote
CF Industries Holdings
CF
$105.08 (1.39%) $1.45

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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