Mosaic Co MOS-N on Wednesday became the latest fertilizer maker to miss fourth-quarter profit estimates amid lower demand for potash and other crop fertilizers, pushing shares down 2.2% in extended trading.
Although prices of fertilizers such as phosphates and potash decreased towards the end of last year, it did not boost demand as farmers waited for pricing trends to stabilize. Higher prices had curbed demand in early second half of 2022.
Mosaic, the world’s largest producer of finished phosphate products, saw a 11% fall in sales volume for the fertilizer due to unplanned operational outages.
The fertilizer maker had in December temporarily curtailed potash production at its Colonsay, Saskatchewan mine in Canada, citing lower-than-expected demand.
Rivals Nutrien Ltd and CF Industries Holdings Inc also missed quarterly profit estimates last week, with Nutrien also forecasting lower-than-expected full-year 2023 earnings.
The company forecast 2023 total capital expenditures in the range of $1.3 billion to $1.4 billion.
Excluding items, the Tampa, Florida-based company reported earnings of $1.74 per share for the three months ended Dec. 31, compared with the average analyst estimate of $2.26 per share, according to Refinitiv data.