Mosaic CEO: It’s Just a Rough Patch, We’re Not Worried
Reported quarterly profits for fertilizer producer Mosaic Co. (NASDAQ:MOS) were far below expectations Tuesday, and the company claims some of the reasons are beyond its control.
Sales of phosphate, a vital nutrient in farming, are down 30 percent after being rocked by slow factory maintenance and bad weather conditions, including August’s Hurricane Isaac. As a result, Mosaic has had difficulty meeting the demand of farmers. The company’s shares fell 4.5 percent to $55.42 Tuesday morning.
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Mosaic Chief Executive Jim Prokopanko tried to bring some calm to the situation Tuesday, telling Reuters, “we get these operational glitches, and some of them are weather-driven. I don’t think there’s been anything, though, that would cast a cloud over the horizon.”
Prokopanko suggested that the stock drop is simply due to Wall Street’s preoccupation with the short term, and that it “doesn’t take away from the extraordinary positive outlook we have on this business.”