There has been an increase in long-term contracts with Global purchasers and exporters to aid in international sales and growth. The Company has engaged into several joint ventures to acquire phosphate mines outside North America, especially in the East African and Latin American belt.ģ. Strong potential for growth in the fertilizer market, as the Company can expand into production of fertilizers as well.Ģ. Following are the opportunities in Mosaic Company SWOT Analysis:ġ. A brand's opportunities can lie in geographic expansion, product improvements, better communication etc. The opportunities for any brand can include areas of improvement to increase its business. There have been labor union upheavals due to exposure of workers to harmful, toxic chemicals with severe after-effects. Limited market share due to stiff competition in the sectorĢ. Here are the weaknesses in the Mosaic Company SWOT Analysis:ġ. Certain weaknesses can be defined as attributes which the company is lacking or in which the competitors are better. Net cash flow reducing working capital and, paying down our debt.Įarn the right to grow.The weaknesses of a brand are certain aspects of its business which are it can improve to increase its position further. To reach that goal, we are placing a major emphasis on: improving Our goal is to become an investment grade company as soon as possible. Superior execution means we also are focused on strengthening our balance sheet. Savings from the combined operation with a total of $145 million by the end of fiscal 2007. We are committed to delivering significant annual run rate synergy We plan to judiciously grow our successful potash business, as can be seen with our ongoing expansion of capacity at Our immediate priorities are to harvest the cost synergies and reduce phosphate mining and processing costs. In conclusion, let me note that Mosaic has an experienced management team that is driven to deliver superior returns during the industrysĬyclical swings. Finally, equity earnings are projected to range from $35 to $50 million for Fiscal 2006. $40 million per quarter and this includes about $12 million per quarter of an amortization credit.Ĭapital expenditures are expected to be in about $350 to $400 million including some synergy projects. Our interest costs are expected to average about This ERP system will allow us to eliminate duplicate systems, and greatly Resource planning system, which we have pushed out to a fall implementation in order to have sufficient resources devoted to SOX and an expected strong volume spring. As we have noted before, S,G&A costs will benefit from the implementation of a new enterprise S,G&A costs are projected to be about $60 million per quarter. Mosaics fourth quarter, however, is expected to be stronger following the typical crop nutrient season pattern. As a result, fertilizer inventories are rising and margins are under pressure. Fertilizer sales have been slow, even taking into account normal seasonal patterns. Market, and customer decisions to delay crop nutrient purchasing. The fertilizer market has cooled off due to energy costs, low grain prices, a slow export For potash, we are projecting sales of 7.8 to 8.2 million tonnes for fiscal 2006, down 400,000 tonnes compared with our prior guidance. We are projecting phosphate sales volumes of 10.6 to 11.1 million tonnes for fiscalĢ006 which is down 600,000 tonnes compared to our prior guidance. For 2006, we are focused on earnings and cash generation.
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