Mosaic Co : The Mosaic Company Reports Second Quarter Results

Net earnings were $624 million
Earnings per share were $1.40

PLYMOUTH, Minn., Jan. 4, 2012 /PRNewswire via COMTEX/ --The Mosaic Company (NYSE: MOS) reported second quarter fiscal 2012 net earnings of $624 million, compared to $1.0 billionin the prior year quarter. Second quarter fiscal 2011 included a $570 millionafter-tax gain, $1.27per share, from the sale of the Fosfertil business. Excluding this gain from the prior year period, net earnings were up 37 percent year-over-year. Earnings per diluted share were $1.40in the quarter compared to $2.29in the quarter last year, or $1.02excluding the gain from the sale of Fosfertil last year. Earnings per diluted share included $0.08per share in foreign currency transaction gains in the 2012 quarter. Mosaic's net sales in the second quarter of fiscal 2012 were $3.0 billion, a 13 percent increase from $2.7 billionin the same period last year, driven by improved pricing, partially offset by lower volumes.

"Our excellent results demonstrate the strength of underlying agricultural fundamentals combined with effective execution by our businesses," said Jim Prokopanko, President and Chief Executive Officer of Mosaic. "While we expect third quarter results to decline due to near-term macroeconomic uncertainty and cautious distributor purchasing behavior, we remain confident of the strong long-term demand prospects for our products. In this environment, we continue to focus on generating value by executing our strategy.

"We made substantial progress on our strategic priorities during the quarter. Our potash expansion initiative remains on track and on budget. We've completed a major phase of our EsterhazyK2 expansion that, when combined with the now certain reversion of the tolling agreement tonnes, increases our potash capacity by two million tonnes in calendar 2013. Our innovative premium phosphate product, MicroEssentials®, continues to take an increasing share of North American sales, adding value to farmers, distributors and shareholders. We also took steps toward optimizing our balance sheet, including the repurchase of nearly five percent of our outstanding shares."

Mosaic's gross margin for the second quarter of fiscal 2012 was $881 million, or 29.2 percent of net sales, compared to $768 million, or 28.7 percent of net sales, a year ago. Second quarter operating earnings were $797 million, an increase of 21 percent compared to $658 milliona year ago. The increase in gross margin and operating earnings was driven primarily by higher selling prices partially offset by higher phosphate raw material costs and lower volumes.

Cash flow provided by operating activities in the second quarter of fiscal 2012 was $518 millioncompared to $532 millionin the prior year. Capital expenditures totaled $387 millionin the quarter. Mosaic's total cash and cash equivalents were $3.6 billionand long-term debt was $1.0 billionat November 30, 2011, which excludes the $469 millionof debt retired on December 1, 2011.

Business Highlights

• Potash expansion projects continue to be on time and on budget.
  • Expansion capital spending was $267 millionin the quarter.
  • The construction phase of the Esterhazyabove-ground expansion was completed during the quarter.
  • The Company's Board of Directors approved the next phase for the expansion program at the Belle Plainesolution mine.
• South Fort Meadeproduced approximately 280,000 tonnes of phosphate rock during the quarter. Mosaic's other Floridaphosphate rock production remains strong, contributing to a total of 2.7 million tonnes mined during the quarter.
• The Faustina ammonia plant was restarted during the quarter, and was fully operational as of the end of October.
• The Company was included in the S&P 500 Index and conducted a targeted secondary offering of 20.7 million shares related to the inclusion in the Index.
• Mosaic completed the repurchase of 21.3 million shares, approximately five percent of outstanding shares, at a price of $54.58, for $1.2 billion. This repurchase completes the disposition of the 157 million shares designated to be sold by Cargilland the MAC Trusts during the 15-month period following the May 25, 2011split-off transaction. No additional shares are scheduled to be sold until mid- calendar 2013.
• The Company issued $750 millionof new debt, with an average yield of 4.2 percent, and called $469 millionof outstanding debt bearing an interest rate of 7.625 percent.
• Subsequent to quarter end, a settlement was reached on the potash tolling agreement dispute, resulting in an additional 1.3 million tonnes of peaking capacity for Mosaic beginning in January 2013.

Potash

Potash Results	2Q FY12 Actual	2Q FY12 Guidance
Average MOP selling price	$440	$440 to $465
Sales volume	1.8 million tonnes	1.7 to 2.1 million tonnes
Potash production	78% of operational capacity	80% to 90% of operational capacity

"Our Potash segment's operating earnings grew 42 percent compared to the second quarter last year," said Prokopanko. "While the seasonal lull has recently slowed sales, we expect record global shipments in 2012 and project a strong spring application season. Recent macroeconomic uncertainty has caused distributors around the world to become cautious and we anticipate significant sales volumes will be delayed until our fourth fiscal quarter. We currently maintain appropriate inventory levels and plan to produce at rates needed to satisfy expected demand in the second half of fiscal 2012."

Net sales in the Potash segment totaled $839 millionfor the second quarter, up 20 percent compared to $699 milliona year ago. Gross margin was $394 million, or 47 percent of net sales, compared to $285 million, or 41 percent of net sales, a year ago. Operating earnings were $358 million, up 42 percent compared to $252 millionin the prior year. The increase in gross margin and operating earnings was primarily the result of higher year-over-year prices. Gross margin excluding resource taxes, a measure comparable to certain peer reporting, was 55 percent in the second quarter compared to 52 percent a year ago.

The second quarter average MOP selling price, FOB plant, was $440per tonne, up from $331a year ago. Sequentially, average MOP prices were down slightly, reflecting a three percent quarterly increase in domestic prices, offset by higher volumes through Canpotex where pricing declined two percent in the quarter. The Potash segment's total sales volumes for the second quarter were 1.8 million tonnes, flat with last year.

Potash production was 1.8 million tonnes, or 78 percent of operational capacity, an increase from 1.7 million tonnes, or 74 percent of operational capacity, a year ago.

Phosphates

Phosphates Results	2Q FY12 Actual	2Q FY12 Guidance
Average DAP selling price	$611	$600 to $625
Sales volume	3.2 million tonnes	3.1 to 3.5 million tonnes
Processed phosphate production	86% of operational capacity	>85% of operational capacity

"Our Phosphates business increased our share of North American sales while generating higher sequential margins," stated Prokopanko. "Last week, we announced a 250,000 tonne curtailment of our phosphate production over the next three months in response to the very cautious buyer behavior we've seen in the past weeks, and the resultant impact on near-term demand. Longer-term, we believe the phosphate market provides us with significant opportunities. Underlying agriculture fundamentals are strong and we expect 2012 global phosphate demand to set yet another record. We are expanding our production capabilities for our premium phosphate product, MicroEssentials®, which is delivering proven value to farmers and distributors, and is a clear differentiator for Mosaic."

Net sales in the Phosphates segment were $2.2 billionfor the second quarter, up 10 percent compared to $2.0 billionlast year. Gross margin was $476 million, or 22 percent of net sales, compared to $476 million, or 24 percent of net sales, for the same period a year ago. Operating earnings were $432 million, up 7 percent compared to $402 millionlast year. The flat gross margin reflects higher prices, primarily offset by higher raw material costs. The Company estimates the Faustina outage increased raw material costs by approximately $30 millionin the quarter. This higher cost was partially offset in other operating earnings by $20 millionin a related insurance recovery.

The second quarter average DAP selling price, FOB plant, was $611per tonne, compared to $461a year ago. Phosphates segment's total sales volumes were 3.2 million tonnes, compared to 3.7 million tonnes a year ago. Last year's second quarter was an all-time record for sales volumes. Lower international sales were the largest contributor to the sales decline, primarily due to the timing of shipments to India. Mosaic estimates indicate capture of a record share of North American sales in the first half of fiscal 2012, and MicroEssentials® grew its share of North American sales to nine percent.

Mosaic's North American finished phosphate production was 2.1 million tonnes, or 86 percent of operational capacity, compared to 2.1 million tonnes, or 88 percent of operational capacity in the same period a year ago. North American phosphate rock production was 2.7 million tonnes during the second quarter compared to 2.5 million tonnes a year ago.

Other

Selling, general and administrative expenses (SG&A) were $101 millionfor the second quarter, an increase from $89 milliona year ago, driven primarily by higher wages and benefits, as well as an increase in charitable contributions. Other operating income was $16 millionfor the second quarter compared to other operating expense of $21 milliona year ago, and included the Faustina-related $20 millioninsurance recovery. Foreign currency transaction gain was $55 millionfor the second quarter compared to a loss of $31 millionin the year ago period. Fluctuations were primarily driven by changes in the U.S. dollar to Canadian dollar exchange rate. Income tax expense was $231 millionfor the second quarter resulting in an effective tax rate of 27 percent, compared to $281 million, or 22 percent, for the same period last year.

Financial Guidance

Total sales volumes for the Potash segment are expected to range from 1.2 to 1.5 million tonnes for the third quarter of fiscal 2012. Mosaic's realized MOP price, FOB plant, for the third quarter of fiscal 2012 is estimated to range from $430 to $460per tonne.

Total sales volumes for the Phosphates segment are expected to range from 2.2 to 2.6 million tonnes for the third quarter of fiscal 2012. Mosaic's realized DAP price, FOB plant, for the third quarter of fiscal 2012 is estimated to range from $530 to $560per tonne. Segment margins in the third fiscal quarter are expected to decline sequentially driven by the combination of lower expected realized DAP prices, the lagging impact of prior raw material price increases and a planned reduction in production rates. Spot prices of raw materials have declined recently, and that trend is expected to benefit margins in the fourth fiscal quarter.

The third quarter operating rate in the Potash segment is expected to exceed 80 percent of operational capacity. The Company's operating rate at its North American phosphate operations is expected to range from 70 to 80 percent of operational capacity during its third quarter, due to the previously announced 250,000 tonne reduction in finished phosphate production.

Previously disclosed 2012 guidance for capital spending, SG&A, Canadian resource taxes and royalties, and effective income tax rate have not changed:

• Total capital spending for fiscal 2012 is expected to range from $1.6 to $1.9 billion.
• SG&A are estimated to range from $400 to $430 million.
• Canadian resource taxes and royalties are expected to range from $420 to $470 million.
• The effective income tax rate is estimated in the upper 20 percent range.

Canadian resource taxes and royalties are included as a component of cost of goods sold in the Company's consolidated income statement.

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 .

Mosaic will conduct a conference call on Thursday, January 5, 2012at 8:30 a.m. ESTto discuss second quarter earnings results as well as global markets and trends. Presentation slides and a simultaneous audio webcast of the conference call may be accessed through Mosaic's website at . This webcast will be available up to one year from the time of the earnings call.

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 economic and credit market conditions; the level 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, implementation of the U.S. Environmental Protection Agency's numeric water quality standards for the discharge of nutrients into Floridalakes and streams or possible efforts to reduce the flow of excess nutrients into the Gulf of Mexico; further developments in the lawsuit involving the federal wetlands permit for the extension of the Company's South Fort Meade, Florida, mine into Hardee County, including orders, rulings, injunctions or other actions by the court or actions by the plaintiffs, the Army Corps of Engineers or others in relation to the lawsuit, or any actions the Company may identify and implement in an effort to mitigate the effects of the lawsuit; other difficulties or delays in receiving, or increased costs of, necessary governmental permits or approvals; the effectiveness of the Company's processes for managing its strategic priorities; adverse weather conditions affecting operations in Central Floridaor the Gulf Coast of the United States, including potential hurricanes or excess rainfall; actual costs of various items differing from management's current estimates, including, among others, asset retirement, environmental remediation, reclamation or other environmental regulation, or Canadian resources taxes and royalties; accidents and other disruptions involving Mosaic's operations, including brine inflows at its Esterhazy, Saskatchewanpotash 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.

Description	Segment	Line item		Amount (in millions)		EPS impact (fully diluted)
Insurance proceeds	Phosphates	Other operating expenses	$	20	$	0.03
Unrealized (gain) loss on derivatives	Potash	Cost of goods sold		(16)		(0.02)
PCS receivable write-off	Potash	Revenue		(5)		(0.01)
				(4)		(0.00)

Condensed Consolidated Statements of Earnings
(in millions, except per share amounts)
The Mosaic Company									(unaudited)
			Three months ended						Six months ended
			November 30,						November 30,
			2011			2010			2011			2010
Net sales		$	3,014.5		$	2,674.8		$	6,097.8		$	4,863.1
Cost of goods sold			2,133.3			1,906.5			4,368.4			3,590.1
Gross margin			881.2			768.3			1,729.4			1,273.0
Selling, general and administrative expenses			100.6			89.3			201.7			177.4
Other operating (income) expense			(16.4)			20.8			1.1			27.1
Operating earnings			797.0			658.2			1,526.6			1,068.5
Interest income (expense), net			4.1			(5.6)			9.2			(12.6)
Foreign currency transaction gain (loss)			55.1			(30.9)			49.4			(28.9)
Gain on sale of equity investment			-			685.6			-			685.6
Other (expense)			(0.8)			(0.3)			(0.1)			(0.9)
Earnings from consolidated companies before income taxes			855.4			1,307.0			1,585.1			1,711.7
Provision for income taxes			230.7			281.3			435.8			390.9
Earnings from consolidated companies			624.7			1,025.7			1,149.3			1,320.8
Equity in net earnings of nonconsolidated companies			0.9			1.1			2.7			4.9
Net earnings including noncontrolling interests			625.6			1,026.8			1,152.0			1,325.7
Less: Net earnings attributable to noncontrolling interests			2.0			1.2			2.4			2.4
Net earnings attributable to Mosaic		$	623.6		$	1,025.6		$	1,149.6		$	1,323.3
	Basic net earnings per share attributable to Mosaic	$	1.41		$	2.30		$	2.58		$	2.97
	Diluted net earnings per share attributable to Mosaic	$	1.40		$	2.29		$	2.58		$	2.96
	Basic weighted average number of shares outstanding		443.4			445.8			445.0			445.6
	Diluted weighted average number of shares outstanding		444.7			447.3			446.3			447.1

Condensed Consolidated Balance Sheets
(in millions, except per share amounts)
The Mosaic Company					(unaudited)
					November 30,			May 31,
					2011			2011
Assets
Current assets:
	Cash and cash equivalents			$	3,627.6		$	3,906.4
	Receivables, net				919.2			926.0
	Inventories				1,206.7			1,266.4
	Deferred income taxes				188.2			277.8
	Other current assets				417.7			308.3
			Total current assets		6,359.4			6,684.9
Property, plant and equipment, net of accumulated depreciation
	of $3,150.3 million and $2,975.8 million, respectively				6,975.0			6,635.9
Investments in nonconsolidated companies					439.3			434.3
Goodwill					1,830.1			1,829.8
Deferred income taxes					5.8			6.5
Other assets					192.7			195.5
			Total assets	$	15,802.3		$	15,786.9
Liabilities and Equity
Current liabilities:
	Short-term debt			$	28.3		$	23.6
	Current maturities of long-term debt				513.5			48.0
	Accounts payable				853.6			941.1
	Accrued liabilities				635.1			843.6
	Deferred income taxes				68.2			72.2
			Total current liabilities		2,098.7			1,928.5
Long-term debt, less current maturities					1,008.9			761.3
Deferred income taxes					589.4			580.1
Other noncurrent liabilities					785.1			855.1
Equity:
	Preferred stock, $0.01 par value,
		15,000,000 shares authorized, none issued and outstanding as of
			November 30, 2011 and May 31, 2011		-			-
	Class A common stock, $0.01 par value, 275,000,000 shares
		authorized, 170,759,772 shares issued and 128,759,772 shares outstanding as of
			November 30, 2011 and 57,768,374 issued and outstanding as of May 31, 2011		1.3			0.6
	Class B common stock, $0.01 par value, 200,000,000 shares authorized,
		112,991,398 shares issued, none outstanding as of November 30, 2011
			and 112,991,398 shares issued and outstanding as of May 31, 2011		-			1.1
	Common stock, $0.01 par value, 1,000,000,000 shares authorized, 308,688,617 shares
		issued and 296,650,155 shares outstanding as of November 30, 2011, 287,851,416
			shares issued and 275,812,954 shares outstanding as of May 31, 2011		3.0			2.8
	Capital in excess of par value				1,452.2			2,596.3
	Retained earnings				9,435.5			8,330.6
	Accumulated other comprehensive income				408.1			710.2
			Total Mosaic stockholders' equity		11,300.1			11,641.6
	Noncontrolling interests				20.1			20.3
			Total equity		11,320.2			11,661.9
			Total liabilities and equity	$	15,802.3		$	15,786.9

Condensed Consolidated Statements of Cash Flows
(in millions, except per share amounts)
The Mosaic Company											(unaudited)
						Three months ended					Six months ended
						November 30,					November 30,
						2011			2010		2011			2010
Cash Flows from Operating Activities:
	Net earnings including noncontrolling interests				$	625.6		$	1,026.8	$	1,152.0		$	1,325.7
	Adjustments to reconcile net earnings including noncontrolling interests
		to net cash provided by operating activities:
			Depreciation, depletion and amortization			120.2			105.7		240.5			210.4
			Deferred income taxes			76.8			36.5		129.4			6.1
			Equity in loss (earnings) of nonconsolidated companies, net of dividends			0.2			2.0		0.9			(1.8)
			Accretion expense for asset retirement obligations			7.0			7.2		14.1			14.3
			Share-based compensation expense			3.2			3.0		17.0			16.1
			Unrealized loss (gain) on derivatives			24.1			(22.3)		41.4			(6.6)
			Gain on sale of equity investment			-			(685.6)		-			(685.6)
			Other			(1.4)			(7.9)		(1.9)			(6.9)
	Changes in assets and liabilities:
			Receivables, net			(144.4)			(87.6)		(13.8)			(46.3)
			Inventories, net			193.0			227.7		57.2			185.4
			Other current and noncurrent assets			(101.1)			15.5		(99.6)			77.4
			Accounts payable			(114.5)			26.5		(148.7)			(1.0)
			Accrued liabilities and income taxes			(115.1)			(68.0)		(245.1)			48.2
			Other noncurrent liabilities			(55.9)			(47.8)		(71.4)			(47.5)
				Net cash provided by operating activities		517.7			531.7		1,072.0			1,087.9
Cash Flows from Investing Activities:
			Capital expenditures			(387.1)			(291.0)		(778.5)			(585.7)
			Proceeds from sale of equity investment			-			1,030.0		-			1,030.0
			Restricted cash			2.6			(2.0)		1.1			(2.0)
			Other			(0.1)			3.0		0.3			1.4
				Net cash (used in) provided by investing activities		(384.6)			740.0		(777.1)			58.4
Cash Flows from Financing Activities:
			Payments of short-term debt			(46.9)			(134.0)		(72.2)			(224.9)
			Proceeds from issuance of short-term debt			61.6			112.6		76.9			196.3
			Payments of long-term debt			(28.4)			(3.8)		(30.2)			(7.5)
			Proceeds from issuance of long-term debt			741.4			0.7		746.7			0.7
			Proceeds from stock options exercised			1.1			9.2		2.3			10.7
			Repurchase of Class A common stock			(1,162.5)			-		(1,162.5)			-
			Cash dividends paid			(22.3)			(22.3)		(44.7)			(44.6)
			Other			(4.4)			7.4		(5.5)			6.1
				Net cash used in financing activities		(460.4)			(30.2)		(489.2)			(63.2)
Effect of exchange rate changes on cash						(83.1)			55.2		(84.5)			53.3
Net change in cash and cash equivalents						(410.4)			1,296.7		(278.8)			1,136.4
Cash and cash equivalents - beginning of period						4,038.0			2,362.7		3,906.4			2,523.0
Cash and cash equivalents - end of period					$	3,627.6		$	3,659.4	$	3,627.6		$	3,659.4
Supplemental Disclosure of Cash Flow Information:
			Cash paid during the period for:
				Interest (net of amount capitalized)	$	13.9		$	-	$	-		$	21.7
				Income taxes (net of refunds)		185.4			229.3		335.5			306.5

Condensed Consolidated Financial Highlights
(dollars in millions)
The Mosaic Company																				(unaudited)
				Three months ended						Increase/				Six months ended						Increase/
				November 30,						(Decrease)				November 30,						(Decrease)
				2011			2010			Amount		%		2011			2010			Amount		%
Net sales:
	Phosphates(a)		$	2,178.8		$	1,974.0		$	204.8		10%	$	4,398.7		$	3,555.0		$	843.7		24%
	Potash			838.6			699.0			139.6		20%		1,711.5			1,320.9			390.6		30%
	Corporate/Other(b)			(2.9)			1.8			(4.7)		NM		(12.4)			(12.8)			0.4		(3%)
			$	3,014.5		$	2,674.8		$	339.7		13%	$	6,097.8		$	4,863.1		$	1,234.7		25%
Gross margin:
	Phosphates		$	475.7		$	476.3		$	(0.6)		(0%)	$	885.3		$	721.2		$	164.1		23%
	Potash			393.7			285.2			108.5		38%		838.0			541.9			296.1		55%
	Corporate/Other(b)			11.8			6.8			5.0		74%		6.1			9.9			(3.8)		38%
			$	881.2		$	768.3		$	112.9		15%	$	1,729.4		$	1,273.0		$	456.4		36%
Operating earnings (loss):
	Phosphates		$	431.6		$	402.3		$	29.3		7%	$	764.8		$	580.3		$	184.5		32%
	Potash			357.8			251.5			106.3		42%		759.8			469.5			290.3		62%
	Corporate/Other(b)			7.6			4.4			3.2		73%		2.0			18.7			(16.7)		NM
			$	797.0		$	658.2		$	138.8		21%	$	1,526.6		$	1,068.5		$	458.1		43%
Depreciation, depletion and amortization:
	Phosphates		$	64.1		$	58.5		$	5.6		10%	$	128.7		$	119.6		$	9.1		8%
	Potash			53.5			44.7			8.8		20%		106.7			84.7			22.0		26%
	Corporate/Other			2.6			2.5			0.1		4%		5.1			6.1			(1.0)		(16%)
			$	120.2		$	105.7		$	14.5		14%	$	240.5		$	210.4		$	30.1		14%
(a) Includes PhosChem sales for its other member of $130 million and $119 million for the three months ended November 30, 2011 and 2010. Includes PhosChem sales for its other member of $364 million and $273 million for the six months ended November 30, 2011 and 2010. PhosChem is a consolidated subsidiary of Mosaic.
(b) Includes elimination of intersegment sales.

Key Statistics
The Mosaic Company																					(unaudited)
				Three months ended						Increase/					Six months ended						Increase/
				November 30,						(Decrease)					November 30,						(Decrease)
				2011			2010			Amount		%			2011			2010			Amount		%
Sales volume (in thousands of metric tonnes):
Phosphates Segment
	Phosphates
	Crop Nutrients(a):
		North America		893			972			(79)		(8%)			1,756			1,825			(69)		(4%)
		International		994			1,264			(270)		(21%)			1,994			2,347			(353)		(15%)
	Crop Nutrient Blends(b)			820			867			(47)		(5%)			1,615			1,567			48		3%
	Feed Phosphates			147			149			(2)		(1%)			299			270			29		11%
	Other(c)			342			421			(79)		(19%)			691			727			(36)		(5%)
	Total Phosphates Segment(a)			3,196			3,673			(477)		(13%)			6,355			6,736			(381)		(6%)
Potash Segment
	Potash
	Crop Nutrients(d):
		North America		525			910			(385)		(42%)			1,138			1,587			(449)		(28%)
		International		1,055			737			318		43%			2,098			1,587			511		32%
	Non agricultural			180			155			25		16%			345			306			39		13%
	Total Potash Segment			1,760			1,802			(42)		(2%)			3,581			3,480			101		3%
Production volume (North America)
	(in thousands of metric tonnes):
	Phosphates (e)			2,083			2,139			(56)		(3%)			4,245			4,297			(52)		(1%)
	Potash			1,805			1,678			127		8%			3,660			3,118			542		17%
Average selling price per tonne:
	DAP(f)		$	611		$	461		$	150		33%		$	594		$	447		$	147		33%
	Crop Nutrient Blends(b) (g)			581			459			122		27%			585			436			149		34%
	MOP - North America(f) (i)			533			351			182		52%			526			354			172		49%
	MOP - International(f)			393			281			112		40%			397			276			121		44%
	MOP - Average(f)			440			331			109		33%			443			331			112		34%
Average cost per unit:
	Ammonia (metric tonne)		$	579		$	361		$	218		60%		$	566		$	376		$	190		51%
	Sulfur (long ton) (North America)			237			134			103		77%			234			143			91		64%
Canadian resource taxes and royalties(h)			$	67		$	79		$	(12)		(15%)		$	163		$	131		$	32		24%
(a)Phosphates volumes represent dry product tonnes. Excludes tonnes sold by PhosChem for its other member.
(b)The average product mix for blends (by volumes) contains approximately 50% phosphate, 25% potash and 25% nitrogen, although this mix can differ based on seasonal and other factors.
(c) Other volumes are primarily single superphosphate, potash and nitrogen products sold outside North America.
(d)Potash volumes include intersegment sales, and exclude tonnes mined under a third party tolling arrangement.
(e) Includes crop nutrient dry concentrates and animal feed ingredients.
(f)FOB plant, sales to unrelated parties.
(g) FOB destination.
(h) Amounts in millions of U.S. dollars.
(i) Prices exclude industrial and feed sales

Selected Non-GAAP Financial Measures and Reconciliations
The Mosaic Company									(unaudited)
Adjusted net earnings attributable to Mosaic
			Three Months ended
			November 30,						2011-2010
			2011			2010			Change		Percent
Net earnings attributable to Mosaic		$	623.6		$	1,025.6		$	(402.0)		(39%)
After-tax gain from sale of Fosfertil			-			(570.1)			570.1
Adjusted net earnings attributable to Mosaic		$	623.6		$	455.5		$	168.1		37%
Diluted net earnings per share			1.40			2.29			(0.89)		(39%)
Diluted net earnings per share attributable to gain from sale of Fosfertil			-			1.27			(1.27)
Adjusted diluted net earnings per share			1.40			1.02			0.38		37%
Diluted weighted average number of shares outstanding			444.7			447.3

The Company has presented above adjusted net earnings attributable to Mosaic which is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Adjusted net earnings attributable to Mosaic is not a measure of financial performance under GAAP. Because not all companies use identical calculations, investors should consider that Mosaic's calculation may not be comparable to other similarly titled measures presented by other companies.

Adjusted net earnings attributable to Mosaic provides a metric that the Company believes is helpful to investors in evaluating the Company's performance as it excludes the onetime gain from the sale of Mosaic's equity investment in Fosfertil. Adjusted net earnings attributable to Mosaic should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

	Potash Gross Margin, Excluding Resource Taxes and Royalties, Calculation
				Three months ended
				November 30,
				2011			2010
	Sales		$	838.6		$	699.0
	Gross margin			393.7			285.2
	Canadian resource taxes and royalties ("CRT")			67.3			79.1
	Gross margin, excluding CRT		$	461.0		$	364.3
	Gross margin percentage, excluding CRT			55.0%			52.1%
	The Company's margins are further reduced by the impact of a third party tolling agreement.

The Company has presented above gross margin excluding Canadian resource taxes and royalties (CRT) for its potash segment which is a non-GAAP financial measure. Generally, a non-GAAP financial measure is a supplemental numerical measure of a company's performance, financial position or cash flows that either excludes or includes amounts that are not normally excluded or included in the most directly comparable measure calculated and presented in accordance with U.S. generally accepted accounting principles ("GAAP"). Gross margin excluding CRT is not a measure of financial performance under GAAP. Because not all companies use identical calculations, investors should consider that Mosaic's calculation may not be comparable to other similarly titled measures presented by other companies.

Gross margin excluding CRT provides a measure that the Company believes enhances the reader's ability to compare the Company's gross margin with that of other companies which incur CRT expense and classify it in a manner different than the Company in their statement of earnings. Because securities analysts, investors, lenders and others use gross margin excluding CRT, the Company's management believes that Mosaic's presentation of gross margin excluding CRT for the potash segment affords them greater transparency in assessing Mosaic's financial performance against competitors. Gross margin excluding CRT, should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP.

SOURCE The Mosaic Company