Mosaic’s Sales: Phosphate Segment Continued to Disappoint

In 3Q17, Mosaic (MOS) reported sales growth of ~2% YoY (year-over-year) to $2 billion, which grew from $1.95 billion in 3Q16. Mosaic reports its sales under three segments—the Phosphate segment, which accounted for ~36% of the company’s sales, the Potash segment, which accounted for ~21% of the sales, and the International Distribution segment, which accounted for ~43% of the sales during 3Q17.

For 3Q17, the Phosphate segment’s sales were $779 million, which fell as much as 16% YoY—compared to $930 million in 3Q16. However, the other two segments helped the company’s overall sales rise in 3Q17.

The Potash segment’s sales grew as much as 11% YoY to $474 million—compared to $428 million in 3Q16. Similarly, the International Distribution segment’s sales grew 10% YoY to $931 million—compared to $849 million in 3Q16.

The International Distribution segment primarily includes phosphate sales to customers outside of North America (XLB).

The Phosphate segment continued to disappoint Mosaic’s sales in 3Q17. The weakness in phosphate prices (MOO) was likely responsible for the segment’s poor performance. It’s similar to what we saw for PotashCorp’s (POT) Phosphate segment. It helps determine our expectations for Agrium (AGU) and Israel Chemicals’ (ICL) phosphate segments later this month.

In the next part, we’ll discuss what drove Mosaic’s sales.