PHI reports positive 1Q net income

Madison, Miss.-Phosphate Holdings Inc., the owner of Mississippi Phosphates Corp., reported net income of $2.6 million ($.31 per diluted share) for the first quarter ending March 31, 2010, compared to the year-ago loss of $11.6 million ($1.51 per share). First-quarter sales moved up to $60.1 million from the year-ago $54.2 million. PHI said U.S. farmers returned to the market and application rates increased. In addition offshore demand firmed, based largely on purchases from India. The company produced 145,564 st of DAP during the quarter, about 78 percent of planned levels. The shortfall resulted primarily from various unplanned outages in its sulfuric acid operations. “While phosphate prices have trended slightly lower in recent weeks as the U.S. spring season winds down, we are optimistic that the onset of Latin American demand in early summer will suppress any significant price erosion,” said Robert Jones, PHI CEO. “Looking further ahead, extremely low supply chain inventories and improving crop economics should provide a solid backdrop for strong domestic fill activity and healthy fall demand.”