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 webcast available on the company website.In addition, please note that the date of this conference call is August 7th, 2012. 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. Now, I would like to turn the call over to Randy Gress, CEO of Innophos. Randy? Randy Gress Thanks, Mark and good morning, everyone. My opening comments will concentrate on second quarter performance and how we have continued to deliver on our strategic initiatives. Neil will then summarize our financial results and provide a look ahead to the third quarter and the balance of 2012, after which I will conclude with some final remarks and then we will take your questions. Overall for the company, we achieved net sales of $214 million in the second quarter, up 6% from last year with strong Specialty Phosphates revenue growth offsetting a decline in sales of our GTSP co-product. These results were achieved in an environment in which challenging macroeconomic condition undoubtedly contributed to a softening in market demand as the quarter progressed. We were therefore pleased with the strength of our Specially Phosphates business and our ability to demonstrate continued growth. We recorded second quarter diluted earnings per share of $0.81 excluding an $0.08 per share adjustment in the GTSP and other segment which Neil will discuss in more detail. This compares to $0.92 per share in the year-ago period with lower earnings attributable entirely to lower profitability on our GTSP co-product sales. Specialty Phosphates revenue was up 14% compared to the year-ago period driven by both price and volume improvement and good results from Kelatron.
For the US and Canada, the second quarter saw both sequential and year-over-year volume improvement. While our US Canada volumes were off from our expectations by about 2% to 3% due to softer demand, our new Bioactive Mineral Ingredients business contributed to our performance in the quarter and our Mexico Specialty Phosphates volumes were up 70% from year-ago levels.As a result we maintained our Specialty Phosphates operating income above year-ago levels despite lower market demand and significant raw material cost increases. So overall we are pleased with the performance of our Specialty Phosphates business. That said our business continues to deal with the effects of weak demand conditions in various segments in both food and industrial end markets while we also saw some further limited reformulation away from STPP in the industrial cleaning applications market. Although, we now expect market demand to be moderately lower for the rest of the year, we continue to project organic growth 2% to 3% better than the market trend and so we expect to achieve organic growth of about 1% to 3% for the second half. Ongoing success of our growth initiatives will be key to achieving these results. After including sales from our recent acquisitions, we're now targeting second half volume growth of 5% to 7% in comparison to the 3% achieved in the first half. Our GTSP and other business recorded sales of $20 million, a decrease of 35% from the year-ago period. Profitability improved as expected versus the first quarter as fertilizer market prices improved moderately. However they remained well below their year-ago levels while market raw material costs remained high and have not yet adjusted by an equivalent amount. Overall GTSP and other was a breakeven in the quarter, down $5 million on last year after excluding the prior-period adjustments. Market conditions for phosphate fertilizers in general seem to have plateaued again after improving for most for the second quarter. Read the rest of this transcript for free on seekingalpha.com