Cranbury, N.J.-Specialty phosphate marker Innophos Holdings Inc. reported net income of $200.5 million ($9.23 per diluted share) on sales of $934.8 million for the year ending Dec. 31, 2008, compared to a net loss of $5.5 million ($.27 per share) on $579 million for 2007. The company was buoyed by higher selling prices, though demand started to be impacted in the fourth quarter by the global economic conditions. Fourth-quarter net income was $52.3 million ($2.40 per share) on sales of $216.4 million, versus the year-ago loss of $3.9 million ($.19 per share) on sales of $143.9 million. As for 2009, Innophos noted that a large customer in Mexico closed one of its three plants and is expected to greatly reduce its phosphoric acid purchases. As a result, Innophos expects to supply only 35 percent of this customer’s historical needs in the first quarter. This loss could chop revenues by 5-10 percent and income by $6-$16 million. In another matter, Innophos noted that since its supply of purified phos acid from Aurora, N.C., has been disrupted, it is now running its Geismar, La., plant at full rates and expects it will be able to meet current operating and supply plans. In December, Innophos initiated binding arbitration with OCP, its sole supplier of phosphate rock to Mexico, concerning pricing terms for 2008-2009. Though three arbitrators have been selected, Innophos said it could take a year to reach a decision. For now, in preparing disclosures, Innophos is using rock assumptions in the upper end of the range. Innophos is expecting first quarter 2009 volumes to be off approximately 15 percent from fourth-quarter levels due to reduced demand and other factors.
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