MADISON — Phosphate Holdings Inc. reported a first quarter 2011 net income of $16,000, compared to net income of $2.6 million for the same period in 2010.
The fertilizer company achieved operating income of $53,000 for the first quarter of 2011, compared to operating income of $4.2 million for the prior-year period.
Earnings before interest, income taxes, depreciation and amortization (EBITDA) for the first quarter of 2011 were $3.8 million, compared to EBITDA of $7.2 million for the first quarter of 2010.
Net sales for the first quarter of 2011 were $77.6 million, a 29 percent increase over net sales of $60.1 million for the first quarter of 2010.
Robert E. Jones, CEO, said, “During the first quarter of 2011, our DAP production was impacted by phosphate rock shortages. Severe flooding in Morocco interrupted rock deliveries from the mines to the port causing significant delays in the delivery of phosphate rock to our facility. As a result, we curtailed production during late January and early February to avoid a complete shutdown of our phosphoric acid and DAP granulation plants. As phosphate rock deliveries resumed, we experienced strong DAP granulation results, with 61,885 short tons produced in March 2011. This represents our highest monthly DAP production level in four years. Total DAP production in the first quarter of 2011 was 149,031 short tons.
“Early in our second quarter, we experienced additional delays in phosphate rock deliveries, again due to logistical difficulties in Morocco. These delays will result in a shutdown of our DAP granulation and phosphoric acid plants for approximately eight days in early May 2011. To mitigate the impact of this shutdown, we advanced a planned maintenance turnaround on one of our sulfuric acid plants. Both the planned and unplanned outages will impact our second quarter DAP production volumes, which we currently project to be 140,000 to 150,000 short tons.
“At the end of 2010, our board of directors appointed a special committee of independent directors to initiate a comprehensive review of strategic options. While this review is ongoing, we will not hold an earnings call to discuss our first quarter 2011 financial results and will not otherwise discuss this strategic process. When the strategic process is completed, we intend to resume regular quarterly earnings calls. We look forward to providing a more comprehensive update at our annual meeting in late June in New York. Details regarding the date and time of the Annual Meeting will be forthcoming.”
Source: Phosphate Holdings