By Stephen Nakrosis
The Mosaic Co. (MOS) on Monday said it would idle phosphate operations in Louisiana and planned to initiate $250 million in share repurchases.
The company also said its Brazilian-based unit, Mosaic Fertilizantes, took action to meet a previously announced synergy target of $275 million for this year. The Brazilian unit said it planned to "drive an additional $200 million in annual value through ongoing business transformation efforts by the end of 2022."
Mosaic said the share repurchase would be made under an existing stock repurchase plan, which has a remaining capacity of $850 million.
Mosaic made its disclosures ahead of upcoming investor meetings, the company said.
Mosaic said idling its Louisiana operations will reduce production by about 500,000 tons this year, and "is expected to accelerate the reduction of high phosphate fertilizer inventories."
Mosaic also said it expects "a more balanced global supply-and-demand picture to emerge by 2020."
The company's President and Chief Executive, Jim O'Rourke, said "We believe taking these steps now will further enhance Mosaic's ability to benefit from expected strong business conditions in 2020."
--Write to Stephen Nakrosis at email@example.com