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(Sharecast News) - Florida-based potash and phosphate fertiliser producer Mosaic revealed on Monday that it is reviewing its current production plan amid challenging market conditions, after it swung to a loss in the first quarter as raw material prices soared.
The company said it was closely monitoring raw material prices, particularly sulfur which recently surged to record highs because of limited availability.
"As a result, Mosaic has withdrawn its phosphate production guidance for 2026 as it reviews its operating plan for the rest of the year. As part of this review, Mosaic has taken initial steps to partially curtail production at Louisiana and Bartow and is scaling back additional production in Brazil," the company said.
The news came as Mosaic reported a net loss of $258m for the first quarter, a $0.5bn swing after making a net profit of $238m the year before.
Adjusted earnings per share came to 5cents, well below the 24cents expected by the market.
Phosphate sales volumes increased to 1.9m tonnes from 1.5m tonnes the year before, and potash sales volumes rose to 2.2m tonnes from 2.1m tonnes, though fertiliser sales volumes slipped to 1.6m tonnes from 1.8m tonnes.
As a result, group net sales increased 14% year-on-year to $3.0bn, slightly ahead of the $2.93bn consensus estimate.
"Business conditions were volatile in the first quarter. We responded by curtailing uneconomic production, carefully managing working capital and using our market access to meet customer demand," said president and chief executive Bruce Bodine.
"As we look to the rest of the year, we are prepared to take additional actions to ensure we navigate effectively for the short term while preserving our ability to benefit when market dynamics improve."
Mosaic shares were down 0.7% at $22.05 by 1520 BST, shortly after the opening bell on Wall Street.
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