Cranbury, N.J.-Innophos Holdings Inc., a North America specialty phosphates company, reported a net loss of $2.1 million on sales of $136.7 million for the first quarter ending March 31, 2007, versus the year-ago loss of $1.3 million and sales of $130.3 million. First quarter operating income was $10.0 million, down from the year-ago $11.1 million. Innophos took a first quarter charge of $1.4 million for a reduction in benefits and severance for certain personnel as part of its Mexican reorganization. The company noted weaker pricing and lower volumes in the U.S., while volumes in Mexico and Canada were up. “This was a solid quarter for Innophos,” said Randy Gress, CEO. “Now that we have completed our IPO and variable rate note refinancing, we are focused on the opportunities ahead, with an emphasis on improving business performance in the balance of 2007.” In other news, Innophos reported May 14 that it received a favorable ruling on its $106 million salt water tax appeal from the Mexican Court of Fiscal and Administrative Justice. Innophos said the Court ruled, as Innophos had argued, that tax assessments were invalid because the water in question was marine salt water and the extraction and use of the water did not require a certificate nor was it subject to fees or tax. Innophos says some $30 million in water taxes are still under appeal. It also says Rhodia S.A., the firm from which Innophos purchased its business in 2004, must indemnify Innophos and that Rhodia has assumed control of the defense in the case.
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