Q3 2024 Mosaic Co Earnings Call Transcript
Key Points
- The Mosaic Co (MOS) successfully navigated through three hurricanes with no safety incidents or significant environmental damage, quickly restoring operations.
- The company generated $2.8 billion in revenue for the third quarter, with a net income of $122 million and adjusted EBITDA of $448 million.
- Mosaic Biosciences is experiencing accelerated growth, with products now used on 9 million acres globally, and is largely self-funding.
- The company is on track to achieve its $150 million annual run rate cost savings target by the end of 2025 and a $200 million reduction in CapEx this year.
- Mosaic Co is optimistic about the agriculture and fertilizer market outlook for 2025, expecting strong demand and constructive market fundamentals.
- The third quarter was challenging due to hurricanes and electrical issues at potash mines, impacting production levels.
- Lower potash prices and a delayed agriculture recovery in Brazil contributed to reduced adjusted EBITDA.
- The company recorded $32 million in bad debt reserves due to a Brazilian customer's bankruptcy, impacting Mosaic Fertilizantes' EBITDA.
- Phosphate production was affected by Hurricane Milton, resulting in a loss of about 250,000 tonnes, impacting fourth-quarter volumes.
- The potash segment saw a decline in adjusted EBITDA compared to the previous year, driven by lower prices and production disruptions.
Good morning, everyone, and welcome to The Mosaic Company's third-quarter 2024 earnings conference call. (Operator Instructions) Please also note, today's event is being recorded.
I would now like to turn the floor over to Jason Tremblay. Please go ahead.
Thank you, and welcome to our third-quarter 2024 Earnings Call. Opening comments will be provided by Bruce Bodine, President and Chief Executive Officer, followed by a fireside chat and then open Q&A. Clint Freeland, Executive Vice President and Chief Financial Officer; and Jenny Wang, Executive Vice President, Commercial, will also be available to answer your questions.
We will be making forward-looking statements during this conference call. The statements include, but are not limited to, statements about future financial and operating results, they are beyond management's beliefs and expectations as of today's date and are subject to significant risks and uncertainties. Actual results may differ materially from projected results.
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