Lower phosphate and potash prices and several unplanned events resulted in a net first-quarter loss of $1 million for the Mosaic Co.
Earnings per diluted share were at the break-even level, well short of the 19 cents per share expected by analysts polled by Thomson Reuters and 73 cents less than earnings in the first quarter of the previous year.
In the first quarter of 2016, the company had net earnings of $257 million.
The global fertilizer company based in Plymouth said Tuesday its net sales during the quarter were $1.6 billion, down from $1.7 billion during the same period in 2016, with the lower prices more than offsetting higher sales volumes. Prices are at multiyear lows in part because of the weak farm economy and low crop prices, which have forced farmers to reduce fertilizer and other expenses.
Mosaic's report sent its share prices spinning downward to the lowest levels in 7 months. President and Chief Executive Joc O'Rourke called the first-quarter results "disappointing," but said that global demand is strong, and the company will benefit from higher sales and prices during the rest of the year.
"Mosaic is well positioned to capitalize on the gradual recovery in potash and phosphate markets," he said.
In a conference call with analysts, Rich Mack, Mosaic's chief financial officer, said the company also experienced several operational challenges that hurt earnings during the quarter.
The company had a mechanical failure at its Esterhazy K2 potash mine in Saskatchewan, an unplanned shutdown of its Faustina ammonia plant in Louisiana, excessive rain and flooding at a joint venture mine that it owns in Peru, and a derailment and other logistical problems at Canpotex, a potash operation in Canada that Mosaic owns with two partners.
