After Mosaic Earnings, Fertilizer Tastes Better Than Chicken (MOS, MOO)

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Shares of Mosaic Co. (NYSE: MOS) are surging pre-market after beating its earnings expectations.  The company posted a record posted a record $520.8 million in net income, translating to $1.17 EPS from $2.15 Billion in revenues.  First Call had estimates at $0.95 EPS.

Mosaic also said that its phosphate selling price would jump over the next three months by up to 48% to $720 per metric ton, up from an average of $487 per metric ton this last quarter.  Its sales volume was maintained at 2.2 to 2.4 million metric tons.

These high prices are more than offsetting cost increases for its raw materials needed to make potash.  The company is benefiting from worldwide demand for for fertilizers and potash.  As the global population grows and as the rest of the world’s living standards rise, the demand for more grown food and agriculture keeps rising and rising.

Mosaic shares are up 8% at $112.90 in pre-market trading right before the open.  its 52-week trading range is $27.25 to $119.78.  The numbers were strong enough that the Market Vectors Global Agribusiness ETF (AMEX: MOO) ETF was even indicated up 3% at the same time.

Soon they’ll be opening all you can eat Chinese buffets all over the world.

Jon C. Ogg
April 4, 2008