The Globe and Mail reports in its Wednesday edition that U.S.-based potash player Mosaic Co. reported a better-than-expected quarterly profit as it kept a tight leash on costs. A Reuters dispatch to The Globe says that Mosaic also slashed its annual dividend by 45.4 per cent to 60 cents a share, effective with the next declaration, as it expected only a "gradual" improvement from a prolonged slump in the fertilizer market (all figures U.S.). A capacity glut and soft crop prices have pushed potash and phosphate prices to multiyear lows. "While we are confident the market bottom is behind us, the pace of improvement is expected to be gradual," chief executive officer Joc O'Rourke said in a statement. Potash MOP (muriate of potash) cash production costs dropped 28 per cent in the fourth quarter from a year earlier, while phosphate conversion costs fell 15 per cent. Net earnings attributable to Mosaic fell to $12-million, or three cents a share, in the three months ended Dec. 31, from $155-million, or 44 cents a share, a year earlier. On a per share basis, the company recorded a charge of 23 cents, compared with 16 cents last year. Mosaic recently bought Vale's fertilizer business for $2.5-billion.