The Mosaic Co. picked up the pace last quarter, thanks mainly to higher sales volumes in its major businesses.
The global fertilizer company based in Plymouth said Tuesday that its net sales during the quarter were $1.75 billion, up from $1.67 billion during the same period last year, with higher sales volumes offsetting lower phosphates realized prices.
"Mosaic generated improving results during the second quarter as global demand for potash and phosphates remained strong," said President and Chief Executive Joc O'Rourke.
The company reported net earnings of $97.3 million, or 28 cents per share, compared with a net loss of $10.2 million, or 3 cents per share, a year earlier. The latest earnings were higher than the 23 cents per share expected by analysts polled by Thomson Reuters.
Also helping the company was China, where the phosphate industry has been restructuring and is expected to export fewer tons of phosphates this year, compared with 2016. Prompting the changes are Chinese concerns about air and water pollution and profit levels from some of its older and inefficient production facilities that need to be shut down and rebuilt.
Mosaic is one of the world's largest fertilizer companies, mining potash and phosphate and processing those minerals into crop nutrients. Its largest potash operations are in Saskatchewan; its biggest phosphate mines are in south-central Florida.
In the past few years, prices have been at multiyear lows as farmers reduced fertilizer use and other expenses in response to low crop prices and a weak farm economy.
O'Rourke said in a call with analysts that a good portion of revenue declines in recent years have been offset by cost reductions and declining prices for raw materials and that the market is improving gradually.