Cranbury, N.J.—Specialty phosphate maker Innophos Holdings Inc. reported first-quarter net income of $27.6 million ($1.22 per diluted share) on net sales of $228.2 million, compared to the year-ago $26 million ($1.15 per share) on sales of $197.6 million. Operating income was off slightly, to $38.1 million from $40.8 million. During the quarter, the company reached a settled with former parent Rhodia, including a claim of liability for excess water duty charges in Mexico. As a result, first-quarter net income included a $7.2 million after-tax benefit or $.32 per share. The year-ago quarter also included adjustments to water charges. Excluding these adjustments, first-quarter 2012 net income was $20 million compared to $24 million for the year-ago quarter, with the decline attributable exclusively to results from the GTSP and Other segment (primarily fertilizer co-product). The company noted that sales from this unit increased 64 percent on significantly higher volumes, but market prices were lower and operating income dropped to $4.6 million from $7 million. Innophos said its specialty phosphate products saw sales revenues up 10 percent and prices up 11 percent, though operating income was down slightly to $33.5 million from $33.8 million. Innophos expects market demand in this sector to remain stable to moderately improving, with market volume growth of 4-6 percent for 2012 driven by product innovation and geographic growth.
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