Mosaic to permanently discontinue production of MOP at Carlsbad facility Mosaic said in a filing that on July 21 it decided to permanently discontinue production of muriate of potash at its Carlsbad, New Mexico facility. The final date for production is expected to be December 31. The decision is based on the quality of the ore in the Carlsbad basin and the age of the facility's infrastructure. These combined factors make it difficult for the operations to remain competitive in an already challenging global market. The discontinuation of this product at Carlsbad is a further step in our previously announced ongoing asset optimization initiatives. Its larger potash production facilities at Esterhazy, Belle Plaine and Colonsay in Saskatchewan, Canada will continue to produce MOP.Mosaicís plan for the immediate future is to transition the Carlsbad facility to the exclusive production of its highly valued K-Mag product line. K-Mag is a premium potash product that currently represents approximately 70% of production at the Carlsbad facility and is a long-term strategic asset for us.We currently estimate that the discontinued production will result in total pre-tax charges in the range of $135M-$160M. The third quarter pre-tax charges are estimated to be in the range of $55M-$77M with the majority of the remainder expected to be recorded in the fourth quarter.
Mosaic cuts FY15 CapEx $1.1B-$1.3B from $1.1B-$1.4B SG&A expenses to range from $360 to $380 million, inclusive of costs from the recently acquired distribution business in Brazil and Paraguay. Brine management costs to be in the range of $180 to $200 million. The effective tax rate to be in the high teens.
Mosaic reports Q2 EPS $1.08 vs. 64c last year Reports Q2 revenue $2.49B vs. $2.44B last year. The year-over-year change was driven by higher phosphates operating earnings primarily as a result of higher sales volumes, and higher potash operating earnings as a result of higher realized prices and benefits from lower operating costs, partially offset by higher Canadian resource taxes.