All Posts from May 4, 2018

Phosphoric Acid

California, Eastern Cornbelt, Market Watch, Pacific N.W., Phosphoric Acid, U.S. Exports, Western Cornbelt

U.S. Export:

The U.S. price of phosphoric acid sold to buyers in India was contracted at $730/mt CFR P2O5 for the second quarter, a $52/mt rise from $678/mt CFR in Q1.

Eastern Cornbelt:
May phos acid prices in the Eastern Cornbelt were unchanged at $8.45-$8.55/unit rail-DEL for both SPA and MGA.

Western Cornbelt:

Phos acid pricing for May was unchanged at $8.35/unit for rail-DEL SPA and MGA in Iowa, Nebraska, Kansas, and Missouri.

California:

Rail-DEL SPA and MGA for May remained at $9.05/unit in California, unchanged from April phos acid pricing, with Simplot’s reference for MGA remaining at $9.25/unit FOB Lathrop and El Centro.

Pacific Northwest:

Phos acid pricing for May was quoted at $8.55/unit FOB Pocatello, Idaho, and $9.05/unit for rail-DEL SPA and MGA in the region, unchanged from April.

Compass North American Fertilizer Income Off 36 Percent; Volumes Up on Lower Prices

Featured, News, Specialty

Compass Minerals, Overland Park, Kan., reported that its Plant Nutrition North America segment had a 36 percent drop-off in first-quarter operating income, to $4.9 million from the year-ago $7.6 million. Segment revenues were up 8 percent, to $52.9 million from $49.2 million.

Although volumes were up 10 percent, to 87,000 st from the year-ago 79,000 st, average sales prices were down 2 percent, at $610/st from $624/st. While the company said sales volumes of both sulfate of potash (SOP) and micronutrients outpaced year-ago levels, the average selling price was down due to a lower-priced sales mix within micronutrients. Compass said the average first-quarter SOP price was $583/st, up about $20/st from fourth-quarter 2017.

In addition to lower prices, the unit was weighed down by increased production costs and a reduced operating margin. The increased production costs primarily resulted from an increase in depreciation associated with the commissioning of new production at the Ogden, Utah, SOP plant and higher-cost carryover inventory compared to year-ago levels. Sales contained some lower-margin tons produced with supplemental potash. These pressures were somewhat offset by lower shipping and handling costs due to increased direct-to-consumer shipments and FOB sales.

The company expects the North American segment’s second-quarter revenues to be similar to or modestly below year-ago levels, as they will be pressured by the shortened planting season, which was due to inclement weather and SOP imports. Second-quarter operating margins are expected to be similar to those from the first quarter due to lower sales, particularly for micronutrients, as well as continued depreciation. Compass projects second-quarter revenues for the unit of $40-$50 million and full-year volumes of 320,000-350,000 st.

Company-wide, Compass reported 41 percent drop in net income, to $12.6 million ($0.37 per diluted share) from the year-ago $21.5 million ($0.63 per share). Operating earnings were off 36 percent, to $26.6 million from $41.4 million. Revenues were up 13 percent, to $437.9 million from $387.8 million. Adjusted EBITDA was down at $60.8 million from $69.8 million.

Compass projects a full-year EPS range of $2.75-$3.25. It said it continues to focus on its capital expenditures, now seeing those as below $100 million for 2018, down from the previous guidance of $100-$110 million.

“We are encouraged by the return of winter weather both in the U.K. and North America, as well as stable conditions in our agriculture markets, which have resulted in revenue growth for the company,” said Fran Malecha, Compass Minerals president and CEO. “With better deicing market fundamentals expected in the salt business, as well as our strengthened portfolio of specialty plant nutrients and strong commercialization platform, we are poised to drive continued top-line growth for the rest of the year. In addition, we are working diligently to improve our operations and increase our profitability.”

Plant Nutrition South America reported a first-quarter drop in operating income, to $800,000 from the year-ago $1.8 million. The company said the results were above internal expectations for this quarter, which is typically the lowest earnings quarter for the segment. Year-ago income included a $1.9 million benefit related to the finalization of the Produquimica purchase price. Total sales volumes were up, at 140,000 st from 132,000 st. Ag volumes inched up to 61,000 st from 60,000 st despite increased competition, while Chemical Solutions volumes were 79,000 st versus 72,000 st on increased water treatment sales. The average price for South American product was up at $473/st from $465/st. The average Ag price was $646/st, up from $599/st, while the Chemical average was off at $339/st from $354/st.

For the second quarter, Compass said the South American segment should see better Ag market fundamentals and improving economic conditions supporting continued revenue and earnings growth. The company is upbeat for the Ag market, citing higher soybean prices. Compass projects second-quarter revenue of $70-$80 million and full-year volumes of 700,000-900,000 st.

Compass clarified last week that its new Micro-Active™ technology (GM April 27, p. 31) is currently just in Brazil, though distribution may expand into new markets as demand for the technology grows. To date, Malecha told analysts on May 2 that the company has brought about 19 of its South American products into North America.

First-quarter Salt operating income was off 25 percent, to $34.1 million from $45.4 million. Revenues were up 15 percent to $315.9 million from $274.8 million, driven by a 22 percent increase in deicing volumes, though pricing remained flat. Total Salt volumes soared to 4.76 million st from the year-ago 4.03 million st. While deicing volumes were 4.3 million st, up from 3.49 million, consumer and industrial tons were down at 502,000 st from 542,000 st. The average price actually dipped to $66.32 from $68.14/st. While deicing average prices were off only one cent to $55.24/st from $55.25, consumer and industrial product prices averaged $160.26/st, up from $151.25/st.

Comipass said approximately $20 million in increased logistic and production costs primarily resulted from the ceiling fall at the Goderich, Ont., mine last year, which led the company to use rock salt from its Louisiana mine to serve Great Lakes customers.

On April 27, Compass said a strike began at the Goderich mine. The company said it began negotiations with the union in early March, with the goal of reaching a negotiated agreement that represents the mine’s current operational environment with continuous mining and haulage. Compass said it has initiated contingency plans using management and third-party contractors. It expects to safely operate the mine at or near its planned operating rates for the balance of 2018. The company has maintained full-year earnings and volume guidance.

With snow events continuing into April, Compass expects second-quarter Salt revenues to increase over year-ago levels. It also expects the increased activity in the 2017-18 winter season to improve market dynamics for the upcoming North American highway deicing bid season. Compass projects second-quarter Salt revenues of $105-$120 million, with annual sales volumes of 11.8-12.6 million st.

Nutrien Cuts Production Citing Rail Delays

Canada, Featured, News, Potash

Nutrien Ltd., Saskatoon, has announced temporary layoffs of over 600 employees and the idling of production at its Allan and Vanscoy potash mines in Saskatchewan. Nutrien spokesman Will Tigley told Green Markets that 140 employees will be affected at Allan and 470 at Vanscoy. Both mines serve both the North American and Canpotex markets.

“We don’t really think it’s going to impact our potash output for the year,” said Tigley. He said the return to operations will depend on rail capacity. The company said rail delays have caused inventories to pile up, and Nutrien is working with the railways to ship what it can.

“The mines have a combined nameplate capacity of ~7 million mt and estimated operational capacity of ~6 million mt,” said Green Markets Director of Research Neil Fleishman. “While the company said total output for the year should not be affected, a prolonged curtailment of these mines could impact global supply.

“Prior to the merger, Potash Corp. of Saskatchewan Inc. had developed an extensive recent history of temporarily idling mines to manage supply to the market,” he added. “It most recently curtailed Allan and Lanigan to start 2018. However, if the purpose was to limit supply to the market, the company would be unlikely to shift the burden of blame to its rail operator given it has not previously obfuscated the reason for idling mines.”

Canadian National, which handles most of the rail deliveries from the two mines, said it is current with all deliveries at Nutrien and its orders. CN acknowledged delays in January, but maintained that it was able to rebound in February and March and move all orders for Nutrien and Canpotex.

Tigley said CN’s statements are accurate. “We did not try to name any of the railways or vendors in our original statements and are continuing not to get into detail on our specific relationships and what their commitments are with our business.”

Canadian Pacific Railway told Green Markets that the company “continues to work closely with our potash customers, delivering record levels of potash exports in the first quarter. We expect strong demand to continue through the remainder of the year, and look forward to delivering for our customers.”

Some 3,400 train conductors and engineers are currently embroiled in a labor dispute with CP (GM April 20, p. 1), threatening additional operational disruptions in the weeks ahead. Members of the Teamsters Canada Rail Conference (TCRC) and the International Brotherhood of Electrical Workers (IBEW) agreed on April 20 to a recommendation from federal mediators to vote on a new contract offer from CP, but the union leadership is urging members to reject the offer (GM April 27, p. 1). TCRC reported this week that the member vote will occur May 14-23, with the results likely to be announced on May 23. A walkout could commence after that if the offer is rejected.

In related news, The Mining Association of Canada (MAC), on April 30 expressed “profound disappointment” and “frustration” over the failure of legislation to advance in the Canadian Senate that it believed would improve rail transportation in Canada.

“The effectiveness and reliability of rail freight service is critical to Canada’s mineral investment competitiveness, and this move by the government will diminish that competitiveness,” said Pierre Gratton, MAC president and CEO. “How many mill closures and job losses, lost customers, and abandoned investments will it take before a Minister of Transport and his or her department recognize that their oversight of Canada’s railway system is failing? Despite a commitment to ensure that our industry remains competitive, the government has failed to modernize the Canada Transportation Act in a way that balances the interests of shippers and railways and ensures that our wealth- and job-creating industries are protected from the railway’s unbridled market power.”

Gratton noted that mining is the single largest customer group of Canada’s railways, accounting for 19 percent – one-fifth – of the total value of Canadian exports, and over half of total rail freight revenue generated each year. However, he said that an unlevel playing field renders many shippers, including many mining companies, captive to one railway, and therefore beholden to railway market power.

He said the failure of the legislation to advance was a damaging signal to members’ international customers. “There are significant costs associated with transporting goods to and from the mine site, and companies need to get their goods to their international customers on time,” said Gratton.

Gratton noted that the mining industry is a major sector of Canada’s economy, contributing $57.6 billion to national GDP and representing 19 percent of the value of Canadian goods exports in 2016. He said the sector employs 596,000 people directly and indirectly across the country, and that it is proportionally the largest private sector employer of Indigenous peoples in Canada and a major customer of Indigenous-owned businesses.

LSB Speaks Out on Fill Programs, Logistics Woes; El Dorado Turnaround Shortened

Featured, News

LSB Industries Inc. President and CEO Daniel Greenwell told analysts on April 26 that he believes the habit of selling product for fall fill tons at very low prices at or after the Southwestern Fertilizer Conference will be moderated from past practices, since the channel is being more highly served by core producers. “We ask ourselves, why sell a large portion of our production at low prices, when the opportunity to enhance margin exists by developing strategies to better utilize storage facilities. Selling cheap at early dates has been a bad habit of the industry for numerous years. We see that activity starting to change, and we support that.”

He added that producers are being more disciplined. Iowa Fertilizer Co. recently said it had no plans to participate in a summer fill program (GM March 23, p. 1).

Greenwell believes both second-quarter and second-half 2018 will be stronger than the year before. He said the distribution channel for fertilizer products has gone through some significant changes during the past 12 months, and will continue to mature during the remaining portion of 2018.

Greenwell also believes further industry consolidation should occur. “Significant synergies can be obtained and more diverse operations will have better operational flexibility and product diversity,” he added. “Larger platforms will compete more effectively. We expect to participate in that consolidation. We’ll continue to upgrade our business and enhance our onstream rates.”

Greenwell also spoke out on logistic woes. “I think what we’ve seen certainly from the railroads is timeliness or the ability to turn cars. I think – not just our industry, but everybody in the country has seen a deterioration of rail services, and we’ve implemented some better rail tracking management, things like that.” He added that rail service is still relatively poor right now, although the company has not seen inflation in the costs.

He noted that the trucking industry is suffering from a lack of drivers, and that while he would expect higher trucking costs, the company has not seen anything material at this point.

LSB reported that its El Dorado, Ark., ammonia plant has been running so well that the company has decided to shorten the planned September turnaround for the plant from 25 days to 12. This decision will cut capital expenditures from $35 million to $32 million and contribute to margin by adding back in 13 production days. The company said the plant had a 100 percent onstream rate in the first quarter, and produced between 1,300-1,350 st/d.

The Cherokee plant, which ran at 85 percent in the first quarter and went down for repairs and instrument enhancements, will have a 35-day turnaround in late July.

In other news, LSB said it continues to sell non-core assets. It said it is currently in negotiations to sell several pieces of real estate that it believes can generate approximately $6 million in additional cash, and hopes to have more information next quarter.

Potash Ridge Inks SOP MOU

News, News Briefs

Junior miner Potash Ridge Corp., Toronto, said on April 27 that it has signed a Memorandum of Understanding (MOU) with GSFC Agro Tech Ltd. (GATL), a unit of India’s Gujarat State Fertilizers & Chemicals Ltd. (GSFC), for the supply of 50,000 mt/y of sulfate of potash (SOP) from the company’s Blawn Mountain SOP Project in Utah. Potash Ridge CEO Andrew Squires called the MOU a significant accomplishment and a key stepping stone in the financing and development of the project.

Squires added that the company has been in negotiations with other Southeast Asian state-owned enterprises since third-quarter 2017, and it anticipates closing additional offtake MOUs in the very near future, with the intent of achieving offtake commitments for a majority portion of the initial 255,000 mt/y SOP capacity.

Potash Ridge described GSFC as India’s second largest fertilizer company by revenue. GSFC fiscal 2016-17 after-tax profits were $64 million on revenues of $843 million. The company produced some 1.5 million mt of fertilizer. It is also an industrial chemicals producer, including caprolactam. Potash Ridge noted that in order to support its DAP, urea, ammonium sulfate, and NPK production, GSFC is a major importer of ammonia, potash, and sulfur.

GSFC’s future plans include the use of SOP for the production of water soluble and specialty fertilizers. Gujarat Green Revolution Co. Ltd., an associate company of GSFC, is engaged in the promotion and use of modern farming techniques, such as micro irrigation to conserve water, and also provides agronomy services to farmers in the use of this technology to sustain agricultural production in Gujarat.

Potash Ridge noted that GSFC also has offshore investments in the Tunisian Indian Fertilizer Co., a phosphoric acid producer, and in Karnalyte Resources, a junior potash producer in Saskatchewan. In addition, GSFC is studying the possibility of constructing an ammonia/urea complex in the Republic of the Congo (Congo Brazzaville). As earlier reported, the Karnalyte project is currently on hold, awaiting improved potash prices (GM April 6, p. 28).

In other news, Potash Ridge said in light of recent pressure put on aluminum due to U.S. sanctions, prices for aluminum and metallurgical-grade alumina have surged, with the latter topping the $600/mt mark. The company said the Blawn Mountain Project can potentially produce some 420,000 mt/y of unprocessed alumina co-production from the alunite going into the tailings. It said the site’s alunite deposit represents the largest known potential nonbauxite source of alumina in the U.S. The company said this asset provides tremendous upside potential and diversity to its revenue stream.

In addition to Blawn Mountain, Potash Ridge also owns the Valleyfield Fertilizer Corp., which intends to build a fertilizer manufacturing facility in Salaberry-de-Valleyfield, Quebec, to produce 40,000 mt/y of SOP. However, the company is seeking to concentrate on Blawn Mountain, and has been in negotiations to sell the Valleyfield asset to Canada Coal Inc., Vancouver (GM Feb. 23, p. 28; Nov. 22, 2017). However, the nonbinding letter of intent (LOI) on that potential deal was set to expire on April 30, 2018. There was no word from Potash Ridge last week as to whether the LOI had been extended.

CVR Sees More Settled Market in 2018; CEO Not Deterred by Reduced Corn Acreage

News, News Briefs

CVR Partners LP CEO Mark Pytosh told analysts on April 26 that the company sees a more settled market in 2018 than in 2017, and he is not concerned over the USDA’s reduction in corn acreage amounts.

“At this time last year, we were experiencing domestic competitors marketing new production capacity, causing a change in trade flows,” he said. “Now that all of that new production is onstream and the trade flows are normalizing, the market is more settled than in 2017. We believe customers have grown accustomed to purchasing more of their urea needs from domestic producers. They can provide a steady supply, as well as just-in-time deliveries to meet the demand. Ammonia and UAN are supplied largely from domestic production. China has not been very active in the export market this year, allowing the new production to fulfill the need.”

He said as the industry finishes the planting season in the second quarter, he expects the nitrogen fertilizer market to be in better balance than last year, adding that he expects the second-half 2017 pricing to have been the low of this downturn.

Currently, Pytosh believes customer inventory levels are lower than normal, and CVR expects good demand through sidedress season.

Despite USDA moving its corn acreage projections down to 88 million acres from 90 million, Pytosh expects a solid demand year for nitrogen fertilizer. He said the lower acreage should help with reducing corn inventory carryover into the 2019 planting season. “I’d rather see the corn price at $0.50 or $1.00 plus or higher than where it is today; that would be better for us long-term.”

In other news, CVR noted that the Coffeyville, Kan., plant took a turnaround on April 15-30. The company estimated that expenses associated with the turnaround, exclusive of 15 days of lost production, were $7 million. Pytosh estimated lost UAN production as 42,000-45,000 st. In the meantime, the company said the East Dubuque, Ill., plant that took a turnaround in the first quarter is now producing ammonia at very high rates, just north of 1,100 st/d – the highest levels it has seen since purchasing the plant.

Itronics Reports Option on New Plant, Would Allow Expansion of New Technologies

News, News Briefs, Specialty

Green technology fertilizer maker Itronics Inc., Reno, Nev., said on May 1 that it has acquired an exclusive six-month option to purchase a manufacturing facility in Wabuska, Nev. The option can also be extended another six months.

Itronics is a green recycler and produces Gold’n Gro specialty liquid fertilizers, silver bullion, and silver-bearing glass.

The company said it does not have enough room at its Reno manufacturing facility to set up and operate complete prototype processing circuits to develop engineering data to support construction of commercial scale operating units for its new technologies. It said the Wabuska location provides adequate space to expand and continue developing these technologies to large commercial scale.

“This is a long-term strategic site acquisition for commercial expansion of Itronics’ unique portfolio of ‘Zero Waste Technologies,’” said Dr. John Whitney, Itronics president. Those include new hydrometallurgical processes for leaching iron (FeLix Process), zinc (ZinLix Process), and sulfur (SuLix Process) for use in the production of Gold’n Gro micronutrient fertilizers, and high silver content concentrates for e-scrap refining.

Itronics said a high priority is to perform the pilot scale testing using the ZinLix process to convert zinc flue dust to provide a low-cost source of zinc for Gold’n Gro zinc micronutrient fertilizer manufacturing, the ability to ship these fertilizers in bulk by rail throughout the United States, and the production of zinc and byproduct metals, including silver and gold.

Itronics said the site is already zoned for fertilizer manufacturing, chemical manufacturing, and foundry operations, and that special use permits will be required for specific operations. The facility, which is on 48 acres, has five buildings with 54,000 square feet under roof, six dry product silos, and two vertical liquid tanks, and is adjacent to a rail siding. Zinc flue dusts can be delivered in rail hopper cars and stored in the product silos. The silos are fully equipped, including a conveyor system to transport the zinc flue dust powder into one of the existing buildings on site.

“The Wabuska site is strategically located and is already configured and zoned for uses that are a perfect fit for expansion of Itronics breakthrough ‘Zero Waste’ technologies at commercial scale,” said Dr. Whitney. “We are pleased that the seller has been willing to work with Itronics to make this $1.6 million purchase option possible.”

The purchase option also includes more than eight acre feet of water rights. There are two water wells on the site, along with a lined fresh water pond, and a lined process water pond for which the permits are active. Site infrastructure includes electric power and natural gas.

The site, about 75 miles southeast of Reno, is about 12 miles north of Yerington, Nev., on the north side of the Yerington copper mining district, with its large undeveloped copper deposits. It is also about 10 miles east of Itronics’ Fulstone copper, zinc, silver, gold, iron, and industrial mineral exploration property.

Itronics plans to use the option period to complete validation of water rights, special use permit requirements, and other regulatory issues that will need to be assumed with purchase of the property. It will also begin detailed planning for occupying the property within a period that will be defined in part by special use permit requirements and the elapsed time required to obtain such permits.

Scotts 2Q Impacted by Wet Weather, California Permitting

News, News Briefs

The Scotts Miracle-Gro Co., Marysville, Ohio, reported a 10 percent drop in net income for the second quarter ending April 1, citing wet weather and cumbersome new cannabis permitting in California. Net income was $149 million ($2.59 per diluted share) on revenues of $1.01 billion, down from the year-ago $165.2 million ($2.73 per share) and $1.08 billion, respectively. Revenues were off 7 percent. Adjusted EBITDA was off 14 percent, to $272.9 million from $317.1 million.

“The start to this lawn and garden season has been delayed to a greater extent than we have seen in recent memory,” said Jim Hagedorn, chairman and CEO. “Consumer purchases entering May are down double digits from a year ago. However, in the markets like California and Florida, where the weather has cooperated, consumer purchases are in line with last year’s results, and we’ve seen an enthusiastic response to our new products. We’ve begun to see momentum picking up in the Midwest and Northeast in recent weeks as the weather has turned more favorable, making us optimistic that we can quickly make up ground and finish the season as strong as possible.

“The challenges we began to see earlier this year in California continue to affect our Hawthorne business segment at the mid-way point in the year,” he continued. “As we’ve previously stated, we now expect those challenges to last for the balance of the year, and now believe Hawthorne sales will likely be, at best, flat in 2018 on a year-over-year basis, including the impact of acquisitions.”

Second-quarter U.S. Consumer profits were off 9 percent, to $286.2 million on sales of $920.2 million from the year-ago $313.9 million and $974.8 million, respectively. Hawthorne posted a loss of $4.8 million on sales of $41.8 million, down from year-ago profit of $9.6 million and $59.1 million, respectively.

Six-month net income was $127.8 million ($2.20 per share) on net sales of $1.23 billion, down 4 percent from the year-ago $100.3 million ($1.64 per share) and $1.29 billion, respectively. Six-month U.S. Consumer profits were down 10 percent, to $248.3 million on sales of $1.05 billion from the year-ago $275.4 million and $1.1 billion, respectively. Hawthorne was in the loss column at $3 million on sales of $118.5 million, versus the year-ago profit of $16.3 million and $122.8 million, respectively.

Scotts made no changes in guidance, but reminded investors that its planned acquisition of Sunlight Supply Inc. (GM April 20, p. 1) is expected to reduce non-GAAP adjusted earnings by $0.30-$0.40 per share in fiscal 2018. The company expects to adjust full-year guidance after the deal closes, which is expected to be by June 1. With a lot of consumer activity still before it, the company said it is too early to revise expectations. It expects to provide an updated outlook in mid-June.

SiteOne 1Q Pressured by Late Season; Sales Up 11 Percent; New Distribution Centers Open

News, News Briefs, Specialty

SiteOne Landscape Supply, Roswell, Ga., reported a first-quarter loss of $17 million ($0.43 per diluted share) on net sales of $371.4 million, down from the year-ago loss of $10.5 million ($0.26 per share) and $335 million, respectively. The company said unfavorable weather patterns in March partially offset sales growth in fertilizer, controls, and nursery.

The company had an operating loss of $20.6 million, down from the year-ago loss of $11.9 million. Adjusted EBITDA was a negative $5.1 million, down from a year-ago positive $1.2 million.

“Our first-quarter results reflect a late start to the spring season this year, which delayed business during our seasonally slowest and traditionally loss-making quarter,” said Doug Black, SiteOne chairman and CEO. “The quarter also included the opening of our two strategic distribution centers in California and Pennsylvania, completing our major supply chain investments. Given these factors, we are pleased with our overall 11 percent net sales growth in the quarter and with the underlying market trends that we see developing for the year.

“We continue to expect good organic growth and EBITDA margin expansion in 2018 driven by our strong teams and by the execution of our commercial and operational initiatives. We are also off to a great start with four acquisitions year to date and a healthy level of activity to support more acquisitions during the remainder of the year,” said Black.

For the year, SiteOne continues to expect an adjusted EBITDA of $180-$192 million.

In other news, SiteOne said in March it launched the pilot of its new eCommerce platform, the new siteone.com. It will allow customers to order product and schedule pickup and delivery online. The company has been developing the platform over the past 18 months, and is currently live in select test markets. It expects to do a country-wide roll-out in second-half 2018.

Innophos Income Flat, Sales Up 24 Percent

News, News Briefs

Specialty phosphate company Innophos Holdings Inc., Cranbury, N.J., reported first-quarter net income of $11 million ($0.55 per diluted share) on sales of $205 million, compared to the year-ago $11 million ($0.55 per share) and $166 million, respectively. Adjusted EBITDA was up 17 percent, at $32 million from $28 million.

“We began the year with a strong first quarter as we delivered growth from both our legacy business and acquisitions, supported by the favorable impact from our proactive pricing actions,” said Kim Ann Mink, Ph.D., chairman, president, and CEO. “Our recent acquisitions contributed 20 percent of our volume growth in the quarter, with an additional 4 percent year-over-year growth coming from our legacy business, which is a significant turning point compared with the trend seen in recent years.”

The company said a proactive selling price increase program that began in the fourth quarter was effective in offsetting first-quarter input cost increases. With an operating environment continuing to show inflation, the company said it has taken further price increase actions in its specialty phosphate portfolio that will take effect June 1.

Innophos continues to expect full-year revenue to grow 12-14 percent due to annualized contributions from acquisitions, favorable growth in specialty nutrition end-markets served, and stabilization in the legacy business.

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