Mosaic Stock Plunges on Production Woes and Tariff Pressures
Mosaic Co. shares drop 8% as phosphate plant issues reduce production to 1.7M tons. US tariffs compound troubles for the fertilizer giant ahead of Q3 earnings.
- Sharp Stock Decline: Mosaic Co. (MOS) shares fell as much as 8% on Friday, hitting their lowest point in five months after disappointing production news
- Production Problems: Mechanical failures and utility disruptions caused a significant drop in phosphate fertilizer output during Q3, with production reaching only 1.7 million tons—below company expectations
- Sales Miss Targets: Both production volumes and sales figures came in lower than what management had forecasted for the quarter
- Tariff Impact: US tariffs have weakened farmer purchasing power, leading to approximately 20% decline in phosphate and potash imports year-to-date compared to last year
- Previous Struggles: The company's phosphate division already posted an $8 million loss in Q2 due to reduced volumes and extended maintenance work
- Analyst Concerns: Oppenheimer noted investors' frustration over "another milestone missed," while Scotiabank and RBC Capital downgraded the stock to Sector Perform (PTs $34 and $30, respectively) citing "credibility issues"
- Trust Deficit: Analysts say Mosaic needs to deliver consistent results for several quarters before regaining investor confidence and recommendations
- Upcoming Earnings: The Tampa-based fertilizer company is scheduled to report full third-quarter results on November 4
- Double Trouble: Mosaic faces challenges from both operational inefficiencies at its plants and external market pressures from trade policies affecting agricultural spending