Cranbury, N.J.-Specialty phosphate maker Innophos Holdings Inc. reported a 91 percent drop in net income for the fourth quarter ending Dec. 31, 2009, to $5.1 million ($.23 per diluted share) on sales of $147.2 million, compared to the year-ago $59 million ($2.71 per diluted share) and $216.4 million. Fourth-quarter operating income was $18.8 million, versus the year-ago $72.6 million. Innophos CEO Randy Gress said he is confident that the recent phase of price declines is near an end, and that volume trends going into 2010 are very encouraging. Full-year net income was off 67 percent, to $68.1 million ($3.10 per share) on sales of $666.7 million, versus 2008’s $207.2 million ($9.54 per share) and $934.7 million. Operating income was $134 million, versus 2008’s $298.8 million. Gress told analysts that he was pleased with what the company accomplished in 2009. “Across the company, I think we did an outstanding job of handling a tough market situation to deliver solid results. Despite being disadvantaged by the high phosphate rock cost in Mexico and against the backdrop of a global economic downturn together with downward phosphate pricing pressure through the year, we still produced the second highest sales, operating income and net income that this company has ever seen.” Innophos said its Mexican subsidiary will continue to purchase phosphate rock from Morocco’s OCP through September 2010. Innophos expects those prices to be lower than those of 2009, but still adverse to market. After September, the company expects to source rock elsewhere. It is currently in arbitration over 2008-2009 rock pricing with OCP. Hearings on OCP’s counterclaims are expected in July.
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