TORONTO (miningweekly.com) – US fertiliser producer, the Mosaic Company’s NYSE-listed stock on Tuesday rallied 6% to $36.55 apiece, despite reporting a lower third-quarter net profit and cutting its fourth-quarter production outlook for both main operating segments.

Potash prices had fallen in the past year owing to the market being oversupplied and reduced demand in critical markets. Dry weather had limited crop production in India, while a new Chinese tax and economic recession in Brazil had also hindered sales.

Mosaic president and CEO Joc O’Rourke stated that the company would continue to match production with expected demand, prompting the company to pare the production guidance for both its main business segments.

Sales volumes for the phosphates segment were now expected to reach 1.9-million to 2.2-million tonnes for the fourth quarter, compared with 2.4-million tonnes in the fourth quarter of last year.

Potash sales were now expected to range from 1.8-million to 2.1-million tonnes for the fourth quarter, compared with 2.3-million tonnes in the prior comparable period.

Total sales volumes for the international distribution segment were, however, expected to rise from 1.1-million in the fourth quarter of 2014, to between 1.3-million and 1.6-million tonnes in the fourth quarter.

“Over the course of the last two years, we have transformed Mosaic to become more efficient and made great progress in optimising our balance sheet. We continued to grow adjusted earnings a share, despite notably weaker crop nutrient prices and a challenging macroeconomic environment,” O’Rourke said.

For the three months ended September 30, the Plymouth, Minnesota-based company reported a 21% year-on-year drop in net earnings to $160-million, or $0.45 a share, compared with $202-million, or $0.54 a share in the third quarter of 2014.

Excluding special items, adjusted earnings were $0.62 a share, compared with $0.56 a share in the third quarter of last year, as cost-cutting initiatives were gaining traction.

Mosaic’s net sales in the third quarter were $2.1-billion, down 9% year-on-year, as a result of lower volumes and prices.