Phosphates

Net sales in the Phosphates segment were $1.6 billion for the first quarter compared to $1.2 billion last year. Phosphates’ first quarter gross margin was $245.0 million, or 15 percent of net sales, compared with $114.5 million, or 10 percent of net sales, for the same period a year ago. Operating earnings were $178.0 million, compared to $46.5 million in the prior year. The improvement in first quarter operating earnings was primarily due to higher phosphate selling prices, partially offset by higher sulfur and ammonia costs along with the unfavorable effect of reduced phosphate rock production.

The average first quarter DAP selling price, FOB plant, was $431 per tonne, compared to $278 a year ago. Phosphates segment total sales volumes were 3.1 million tonnes, compared to 2.9 million tonnes a year ago, driven by strong demand in both North America and Brazil.

Mosaic’s realized DAP price, FOB plant, for the second quarter of fiscal 2011 is estimated to be $430 to $460 per tonne.