Mosaic's third-quarter profit falls short of expectations, CFO Freeland to retire
Third-quarter sales fall 21% compared with year earlier
Luciano Siani Pires named new CFO, starting Jan. 1
Mosaic forecasts record potash shipments next year
Updates shares in paragraph 1, adds CEO comment in paragraph 5, global markets outlook in paragraphs 7 and 8
By Sourasis Bose
Nov 12 (Reuters) -Fertilizer producer Mosaic MOS.N missed Wall Street estimates for third-quarter profit on Tuesday, hurt by production snags and lower potash prices, sending shares down 8.3% in afternoon trading.
The company also named the former finance chief of Brazilian miner Vale VALE3.SA Luciano Siani Pires as its new CFO, who will start from Jan. 1. Pires succeeds Clint Freeland who is retiring from his role as executive vice president and CFO, but will continue as a senior advisor until July 1.
Siani Pires' appointment follows the tenth successive quarter where the Tampa, Florida-based company failed to beat market estimates, according to data compiled by LSEG.
Mosaic said its third-quarter net sales declined 21% compared with a year earlier to $2.81 billion, weighed down by lower sales following equipment failures in Canada and hurricanes at the U.S. Gulf Coast and lower potash prices. Analysts expected net sales of $3.16 billion.
"We think potash prices have hit bottom as we've seen resistance to low offers in key markets and prices have begun to trend higher," said CEO Bruce Bodine in a call with analysts, adding its production difficulties are over.
Global potash prices have been pressured as supplies are back up to the levels seen before the invasion of Ukraine, as top producers Russia and Belarus have ramped up exports.
Mosaic also expects record global potash shipments and near-record to record phosphate shipments next year.
The largest U.S.-based fertilizer company also said phosphate exports from China will likely remain at historically low levels in 2025.
The company reported adjusted earnings of 34 cents per share for the quarter ended Sept. 30, compared with analysts' average estimate of 54 cents per share.
Mosaic added its Carlsbad potash operation in New Mexico is under strategic review.
Reporting by Sourasis Bose in Bengaluru; Editing by Krishna Chandra Eluri
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