(Reuters) - U.S. fertilizer company Mosaic Co (MOS.N) on Monday topped Wall Street estimates for quarterly profit, led by stronger profit margins for phosphate products and higher sales in Brazil.
The company also raised its yearly earnings forecast, citing strong performance and a lower expected full-year effective tax rate.
Mosaic, the world’s largest producer of phosphate fertilizer, said gross margins for diammonium phosphate rose 36 percent to $67 per ton in the second quarter ended June 30.
Sales volumes at Mosaic’s Brazil business jumped 38 percent to 1.8 million tonnes, driven chiefly by its January acquisition of Vale Fertilizantes.
Mosaic now expects adjusted earnings for 2018 of between $1.45 and $1.80 per share, compared with an earlier forecast of $1.20 to $1.60.
Overall, Mosaic’s net earnings fell some 43 percent to $67.9 million in the second quarter, hurt mainly by expenses related to the Vale acquisition.
Excluding one-time items, Mosaic earned 40 cents per share, above analysts’ average estimate of 38 cents, according to Thomson Reuters I/B/E/S.
Sales rose to $2.21 billion from $1.75 billion.
Reporting by Karan Nagarkatti in Bengaluru; Editing by Sai Sachin Ravikumar