Previous Statements by IPHS
» Innophos Holdings Inc. Q2 2010 Earnings Call Transcript
» Innophos Holdings Inc Q1 2010 Earnings Call Transcript
» Innophos Holdings Inc. Q3 2009 Earnings Call Transcript
We caution you to consider the important risk and other factors as set forth in the forward-looking statements section and in Item 1A, Risk Factors in our annual reports on Form 10-K as filed with the SEC that could cause actual results to differ from those in the forward-looking statements made in this conference call.We will make a replay of this conference call available for a limited time over the telephone at the number set forth in our press release and via a webcast available on the company website. In addition, please note that the date of this conference call is November 3rd, 2010. Any forward-looking statements we may make today are based on assumptions that we believe to be reasonable as of this date and we undertake no obligation to update these statements as a result of future events. Now, I would like to turn the call over to Randy Gress, CEO of Innophos. Randy? Randy Gress Thanks, Mark and good morning, everyone. Today, I will be providing you with the update on third quarter results. After the quarter’s highlights, Neil will summarize the financial results and then I will conclude. While we don't have any additional scripted right now on the Mexico CNA tax position beyond what we disclosed in the announcement a few weeks ago, Bill Farran is available to take your questions. In the course of these comments, we will discuss some adjusted quarterly operating results that exclude the one-time charges detailed in the press release in order to better illustrate developments with the business. Of course, full GAAP results are available in the financial tables attached to the press release. We had a good quarter, especially in the U.S. and Canada. Overall, net sales for the third quarter 2010 were $169 million, a 4% increase over third quarter 2009 on 13% higher volume.
Compared to the third quarter 2009, Specialty Phosphate sales revenue was up 4%, with volumes up 17% year-over-year. The third quarter of 2009 was a period when Specialty Phosphate selling prices were declining from the peak levels reached in early 2009. That's why Specialty Phosphate prices were, on average, 13% below their year-ago level, although prices have been stable to improving since the end of the first quarter this year.GTSP prices generally track with market prices for other phosphate fertilizers and so, were significantly up this year. They were also over 50% higher than the third quarter 2009. As I will outline later, we expect GTSP prices to continue to increase in the fourth quarter and we expect to be able to raise Specialty Phosphate prices going forward as well. Underlying demand remained strong for our businesses. Our U.S. and Canada Specialty Phosphates business in particular continued to produce excellent results. Our Mexican Specialty Phosphates business and our GTSP & Other segment were impacted by a number of factors as I will outline, and results in Mexico were therefore below our expectation. First though, a reminder on our segments. Our core business is the Specialty Phosphate business. Within it, our core markets are products serving the food and beverage, pharmaceutical and oral care markets, which represent around half of total company revenue. We also participate in a small way in less specialized fertilizer markets, primarily through sales of granular triple super-phosphate or GTSP as a result of co-products produced in our acid purification processes in Mexico. And we record this business within our GTSP & Other segment. Demand in Specialty Phosphates remains strong with high value products performing particularly well. Although, as I mentioned – and our core markets are the consumer-oriented ones, we also have some attractive niche positions for industrial applications. And in these sectors, we saw both continued recovery related to the improved economic environment versus last year and also continued success with our innovative, differentiated Specialty Phosphates, particularly our INNOVALT asphalt modifier. Read the rest of this transcript for free on seekingalpha.com