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INNOPHOS HOLDINGS, INC. Reports Operating Results (10-Q)

August 09, 2012 | About:
10qk

10qk

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INNOPHOS HOLDINGS, INC. (IPHS) filed Quarterly Report for the period ended 2012-06-30.

Innophos Holdings, Inc. has a market cap of $1.25 billion; its shares were traded at around $49.16 with a P/E ratio of 15.8 and P/S ratio of 1.6. The dividend yield of Innophos Holdings, Inc. stocks is 1.9%. Innophos Holdings, Inc. had an annual average earning growth of 12.2% over the past 5 years.

Highlight of Business Operations:

Net sales represent the selling price of the products, net of any customer-related rebates, plus freight and any other items invoiced to customers. Net sales for the three months ended June 30, 2012 were $214.2 million, an increase of $12.6 million, or 6.3%, as compared to $201.6 million for the same period in 2011. Selling price increases had a positive effect on revenue of 3.6% or $7.4 million which included a 7.0% increase in Specialty Phosphates showing positives across all product lines that was partially offset by lower pricing in GTSP & Other caused by declining fertilizer market price trends. Volumes increased 2.7% or $5.2 million with all of the Specialty Phosphate product lines showing increases but GTSP & Other showing a decline.

Gross profit represents net sales less cost of goods sold. Gross profit for the three months ended June 30, 2012 was $42.4 million, a decrease of $6.7 million, or 13.6%, as compared to $49.1 million for the same period in 2011. Gross profit percentage decreased to 19.8% for the three months ended June 30, 2012 versus 24.4% for the same period in 2011. Gross profit was unfavorably affected by higher raw material costs, partially offset by lower manufacturing costs and increased volumes, which had a combined unfavorable impact of $12.1 million. There was $3.9 million of out of period cost in Mexico during the current quarter, which was partially offset by revision to our estimates for the effect of contract terms on raw material pricing in 2012 of $1.2 million. Gross profit was favorably affected $7.4 million for higher selling prices and $0.7 million favorable exchange rate mostly from Mexican peso based costs.

Operating income for the three months ended June 30, 2012 was $26.3 million, a decrease of $6.3 million, or 19.3%, as compared to $32.6 million for the same period in 2011. Operating income as a percentage of net sales decreased to 12.3% versus 16.2% for the same period in 2011, for the reasons noted above.

Net sales represent the selling price of the products, net of any customer-related rebates, plus freight and any other items invoiced to customers. Net sales for the six months ended June 30, 2012 were $442.4 million, an increase of $43.2 million, or 10.8%, as compared to $399.2 million for the same period in 2011. Selling price increases had a positive effect on revenue of 6.1%, or $24.5 million, with Specialty Phosphates up 9.0% on positive trends in all product lines, partially offset by lower pricing in GTSP & Other caused by declining fertilizer market price trends. Volumes increased 4.7% or $18.7 million with all major product lines contributing except STPP & Detergent Grade PPA which is down because of a strong first quarter 2011.

which had a combined unfavorable impact of $39.3 million. There was $2.4 million of out of period cost in Mexico during the six months ended June 30, 2012, which was partially offset by revision to our estimates for the effect of contract terms on raw material pricing in 2012 of $1.2 million. Gross profit was favorably affected $24.5 million for higher selling prices, $7.1 million primarily due to the recording of a settlement with Rhodia on their liability for the charges to be paid to the Mexican water authority (CNA), and a $1.3 million favorable exchange rate impact mostly from Mexican peso based costs. Included in 2011 was $3.2 million expense for a scheduled maintenance outage at our Coatzacoalcos, Mexico manufacturing facility and $3.9 million income for updates to the provision for the Mexican CNA Water Tax Claims.

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