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Innophos Holdings, Inc. Reports Second Quarter 2009 Results
Date:8/3/2009

es were down in the second quarter. The lower volumes reflect the continuing recession, limited reformulation, increased competitive pressure and our inability to respond in certain instances because of the current rock cost for Mexico. While we experienced increases in raw material costs this quarter, we were able to maintain nearly breakeven operations in Mexico under competitive pricing and lower demand conditions. Through more flexible sourcing and manufacturing, we have continued to optimize our cost positions across our system. We are continuing to run the overall business profitably despite the downside of the fertilizer market cycle and its effects upon our raw material supply."

Segment Results 2Q 2009 Versus 2Q 2008

United States

  • Year on year quarterly net sales decreased 1.6% as higher prices across all product lines did not fully offset lower volume and mix effects on revenue across all product lines.

  • Operating income increased by $15.5 million from $13.1 million in the second quarter of 2008 to $28.6 million in the second quarter 2009. This improvement was driven by higher selling prices and lower manufacturing expenses which exceeded the effects of higher raw material costs and unfavorable sales volume and mix. The lower second quarter 2009 manufacturing expenses were due to 2008 expenses of $1.3 million for a scheduled Geismar, LA plant maintenance outage and $1.3 million asset impairment for two obsolete production units.

Mexico

  • Net sales decreased 71.3% versus the second quarter 2008 due to lower volume and mix effects on revenue across all product lines and lower prices in STPP & Other Products and Purified Phosphoric Acid.

  • Operating income decreased by $77.2 mi
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SOURCE Innophos Holdings, Inc.
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