Records a $458 million non-cash charge related to changes in U.S. tax legislation
PLYMOUTH, Minn.–(BUSINESS WIRE)– The Mosaic Company (NYSE: MOS) today reported a fourth quarter 2017 net loss of $431 million, compared to net income of $12 million in the fourth quarter of 2016. Fourth quarter loss per share was $1.23, which included a negative impact of $1.57 per share from notable items, primarily related to non-cash charges as a result of changes in U.S. tax legislation. Adjusted earnings per share during the fourth quarter of 2017 were $0.341.
“After a strong fourth quarter, we entered 2018 with positive market momentum and expect this year will be a transformational year for Mosaic,” said Joc O’Rourke, President and Chief Executive Officer. “The addition of Vale Fertilizantes, the construction completion of the Ma’aden phosphate project and progress on the Esterhazy K3 complex further enhance our position as a world class, global fertilizer company.”
Mosaic’s net sales in the fourth quarter of 2017 were $2.1 billion, compared to $1.9 billion last year, primarily driven by higher realized prices throughout the business. Operating earnings during the quarter were $127 million, up from $74 million a year ago, driven by higher gross margins in both Potash and Phosphates.
Cash flow provided by operating activities in the fourth quarter of 2017 was $411 million compared to $323 million in the prior year. Capital expenditures totaled $230 million in the quarter. Mosaic’s total cash and cash equivalents, excluding restricted cash, were $2.2 billion and long-term debt was $5.2 billion as of December 31, 2017. Subsequent to quarter end, the Company used $1.08 billion in cash to close the acquisition of Vale Fertilizantes and pre-paid $200 million on an outstanding term loan.