Cranbury, N.J.-Specialty phosphate maker Innophos Holdings Inc. reported a 12 percent increase in volumes for the first quarter ending March 31, 2010; however, overall sales were off 11 percent due to lower pricing. Net income was also down, at $10.3 million ($.47 per diluted share) on sales of $169 million from the year-ago $30.2 million ($1.39 per diluted share) on sales of $190.8 million. “I am pleased to report strong sequential earnings improvement in the quarter, arising primarily from encouraging ongoing volume growth,” said Innophos CEO Randy Gress. “Results in U.S./Canada were particularly strong, with volumes up 12 percent sequentially. Mexico returned to profitability, and although its results were slightly below expectations, the business continued to make good progress in restoring its market position, with Mexico specialty phosphates sales up 12 percent sequentially. Overall, specialty phosphate volumes were up 19 percent year-over-year, and total company volumes were up 12 percent, the first year-over-year volume improvement the company has achieved since 2007. Pricing also declined less than expected at 4 percent sequentially, and we expect pricing to move up moderately in the second quarter.” Gress said the company made progress on its phosphate rock diversification, signing a new contract with its first new strategic supplier May 3. Innophos did not name the supplier. In the first quarter, it reached a settlement in a contract dispute with traditional supplier OCP (GM March 1, p. 10), with OCP expected to supply rock through September 2010.
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