Cranbury, N.J.—Posting a loss for fourth-quarter 2015, specialty phosphate maker Innophos Holdings Inc. vowed to take more action to remedy the situation, telling analysts Feb. 23 that outside experts will be brought in to assist, and that the company will launch even deeper dives by March 1. Innophos announced a 5 percent cut to its workforce last fall (GM Nov. 9, 2015). “In 2015 our business was challenged by continued weak demand, competitive pricing pressures, and a strong U.S. dollar,” said President Kim Ann Mink. “Realizing that these headwinds are expected to persist in 2016, we are taking critical steps to minimize the impact on our business and become more flexible and agile as market conditions change. We are focusing on making meaningful changes to drive operational excellence, commercial excellence, and strategic growth – three critical areas of focus that will ensure that the business operates at its full potential and continues creating value for our shareholders.” Mink reiterated to analysts that the company plans in 2016 to focus on the GTSP/Other business to make it more profitable, with an eye toward a possible tolling agreement. Innophos expects that unit, which produces co-product GTSP in Mexico, to have a first-quarter loss of $1-$2 million. Mink expects underlying demand in most of its markets to be soft in 2016, with volumes to be relatively flat with 2015. She also said the company would maintain its dividend at current levels as it continues to generate significant cash flow. The company reported a fourth-quarter loss of $4.6 million ($0.24 per diluted share) on net sales of $170.6 million, compared to a year-ago net income of $11.3 million ($0.52 per share) and $194.5 million. Innophos said the TSP/Other segment would have broken even except for some $12 million in management transition charges in the Other category. Fourth-quarter losses for the unit were $11.7 million on sales of $5.3 million, compared to the year-ago loss of $748,000 and $16.6 million, respectively. Total Specialty Product income was $8 million on sales of $165.3 million, down from $23.4 million and $177.9 million, respectively. Results were off for both the U.S./Canada and Mexico segments of the business, with Innophos complaining of competition from Europe for the former and Mexico for the latter. Company-wide full-year net income of $26.3 million ($1.29 per share) and $789.1 million was down from 2014’s $64.5 million ($2.91 per share) and $839.2 million, respectively. Full-year GTSP/Other reported an operating loss of $19.7 million on sales of $56.3 million, compared to 2014’s loss of $3.8 million and $77.3 million. Specialty Phosphate income was $71.2 million on sales of $732.8 million, down from $110.6 million and $761.9 million, respectively.
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