Mosaic Announces Segment Realignment and Phosphate Asset Write-Offs
November 30 2009 - 9:00AM
PR Newswire (US)
PLYMOUTH, Minn., Nov. 30 /PRNewswire-FirstCall/ -- The Mosaic
Company (NYSE:MOS) announced today that it has realigned its
business segments to more clearly reflect the Company's evolving
business model. The realignment includes moving from three to two
business segments by combining the Offshore business segment with
the Phosphates business segment. There are no changes to the Potash
business segment. The Company plans to file with the Securities and
Exchange Commission a current report on Form 8-K with financial
information reflecting the historical performance of the realigned
segments at a future date. The Company also announced the permanent
closure and write-off of assets at the Green Bay plant and South
Pierce phosphoric acid plant that were idled in 2006, in addition
to other machinery and equipment in the Company's Florida
phosphates operations. The estimated charge associated with these
actions will approximate $50 million pre-tax, is non-cash and will
be recorded during the Company's second fiscal quarter ended
November 30, 2009. These actions are part of a broad effort to
improve returns on invested capital in the Company's phosphates
business segment by eliminating idle operating capital and reducing
operating costs. "The change in financial reporting reflects our
actions to further align our strong global distribution resources
with our North American production assets," said Jim Prokopanko,
Chief Executive Officer and President of Mosaic. "Our strategic
priorities in Phosphates focus on growing the value of our business
and maintaining our position as one of the lowest cost phosphate
producers in the world," Prokopanko added. About The Mosaic Company
The Mosaic Company is one of the world's leading producers and
marketers of concentrated phosphate and potash crop nutrients.
Mosaic is a single source provider of phosphate and potash
fertilizers and feed ingredients for the global agriculture
industry. More information on the company is available at
http://www.mosaicco.com/. This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to, statements about future financial and
operating results. Such statements are based upon the current
beliefs and expectations of The Mosaic Company's management and are
subject to significant risks and uncertainties. These risks and
uncertainties include but are not limited to the predictability and
volatility of, and customer expectations about, agriculture,
fertilizer, raw material, energy and transportation markets that
are subject to competitive and other pressures and the effects of
the current economic and financial turmoil; the build-up of
inventories in the distribution channels for crop nutrients;
changes in foreign currency and exchange rates; international trade
risks; changes in government policy; changes in environmental and
other governmental regulation, including greenhouse gas regulation;
difficulties or delays in receiving, or increased costs of,
necessary governmental permits or approvals; the effectiveness of
our processes for managing our strategic priorities; adverse
weather conditions affecting operations in Central Florida or the
Gulf Coast of the United States, including potential hurricanes or
excess rainfall; actual costs of asset retirement, environmental
remediation, reclamation or other environmental regulation
differing from management's current estimates; accidents and other
disruptions involving Mosaic's operations, including brine inflows
at its Esterhazy, Saskatchewan potash mine and other potential mine
fires, floods, explosions, seismic events or releases of hazardous
or volatile chemicals, as well as other risks and uncertainties
reported from time to time in The Mosaic Company's reports filed
with the Securities and Exchange Commission. Actual results may
differ from those set forth in the forward-looking statements.
http://www.newscom.com/cgi-bin/prnh/20060331/MOSAICLOGO
http://photoarchive.ap.org/ DATASOURCE: The Mosaic Company CONTACT:
Media, Rob Litt, +1-763-577-6187, or Investors, Christine Battist,
+1-763-577-2828, both for The Mosaic Company Web Site:
http://www.mosaicco.com/
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