New York, NY (1888PressRelease)
August 04, 2008 - Stockhouse reports that Innophos Holdings, Inc. (Nasdaq: IPHS), a leading specialty phosphates producer in North America, today announced its financial results for the second quarter 2008. Net sales for the second quarter 2008 were $264.0 million, an increase of $112.1 million, or 73.8%, as compared to $151.9 million for the same period in 2007. Selling price increases had a positive impact on revenue of 87.7%, or $133.2 million that occurred across all product lines. Included in these price increases were $6.6 million of revenues for second quarter pricing settlements that were retroactive to the first quarter.
IPHS said that market prices of phosphate rock, sulfur and sulfuric acid, the primary raw materials used in the production of specialty phosphates, have increased substantially over the last several quarters. Innophos purchases phosphate rock, sulfur, and sulfuric acid directly and has other long term raw material supply contracts whose pricing is determined in part by phosphate rock and sulfur spot prices. Innophos implemented price increases in February, April and June 2008, and recently announced additional price increases to be implemented August 1, 2008. These price increases are expected to be fully realized by the fourth quarter of 2008 and are expected to result in a revenue increase of 120% to 130% of 2007.
Innophos is a leading North American manufacturer of specialty phosphates, serving a diverse range of customers across multiple applications, geographies and channels. Innophos offers products used in a wide variety of food and beverage, consumer products, pharmaceutical and industrial applications.
Should IPHS continue to successfully pass along price increases the company could prove an interesting investment for investors looking for companies that perform well in an inflationary environment.
As of the writing of this report IPHS was $36.89 up over 25% with trading volume of more than 1.8 million shares.
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