uploads///International Distribution Segments Shipments

Mosaic’s International Distribution Segment: 4Q16 Shipment Growth

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Dec. 4 2020, Updated 10:52 a.m. ET

International Distribution shipments

Mosaic (MOS) earned about 34.0% of its revenue and ~28.0% of its gross margin from its International Distribution segment in 4Q16. The shipments and average realized prices for phosphate products impacted the segment’s revenue.

In this part, we’ll see how the International Distribution segment’s shipments evolved. To learn more about this segment, read An In-Depth Assessment of Mining Company Mosaic.

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Shipment growth

Similar to Mosaic’s Phosphate segment, shipments for the International Distribution segment also rose year-over-year in 4Q16. They rose 29.0% to 1.9 million metric tons. The quarter’s volumes came in at the top of the company’s guidance range of 1.7 million–1.9 million tons.

Realized prices

Realized prices in 4Q16 for fertilizer under Mosaic’s (MOS) International Distribution segment averaged $354 FOB (free on board) destination. That means the seller pays for shipment and loading costs. It was 13.0% lower than average realized prices of $407 FOB destination in 4Q15.

Outlook

For 1Q17, Mosaic’s management has provided a guidance range for shipment volume for the International Distribution segment of 1.2 million–1.5 million tons. For 2017, management’s guidance is 7.0 million–7.5 million tons.

Agrium (AGU), PotashCorp (POT), and Israel Chemicals (ICL) also serve the market (MOO) where Mosaic’s International Distribution segment has a presence.

In the next part of this series, we’ll look at gross margins for Mosaic’s International Distribution segment.

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