MADISON — Phosphate Holdings Inc. reported second quarter 2009 earnings of $100,000, or $0.01 per diluted share of common stock, compared to earnings of $35 million, or $4.32 per diluted share of common stock for the same period in 2008.
Net losses for the six months ended June 30, 2009, were $11.5 million, or $1.50 per diluted share of common stock, compared to earnings of $42 million, or $5.19 per diluted share of common stock for the same period last year. The company’s first half of 2009 results were materially impacted by inventory write-downs to net realizable value of approximately $10.4 million.
Net sales for the second quarter of 2009 were $42.7 million, a 75 percent decrease from net sales of $171.5 million for the second quarter of 2008. Net sales for the six months were $97 million, a 59 percent decrease from net sales of $238.5 million for the six months ended June 30, 2008.
The company incurred an operating loss of $18.2 million for the six months, compared to operating income of $65.9 million for the prior-year period.
Robert E. Jones, Phosphate Holdings’ CEO, said, “The second quarter of 2009 was a period of weak domestic demand for phosphates. Distributors and retailers with high-priced carryover fertilizer inventories were reluctant to reduce prices. As a result, near-term demand was negatively impacted as many U.S. farmers reduced or deferred their phosphate applications during the spring planting season. During the quarter, we saw U.S. Gulf DAP prices decrease from $313 per short ton at March 31, 2009, to $257 per short ton by quarter’s end.”