Innophos Holdings (IPHS) Misses Q2 EPS by 6c

Innophos Holdings (NASDAQ: IPHS) reported Q2 EPS of $0.65, $0.06 worse than the analyst estimate of $0.71. Revenue for the quarter came in at $217 million versus the consensus estimate of $210.61 million.

Randy Gress, CEO of Innophos, commented, "Similar to last quarter, we had pockets of notable performance this quarter, with year-over-year volume improvements for Cal-Rise®, INNOVALT® and PPA of 34%, 28% and 19%, respectively. Nevertheless, this strong performance was overshadowed by weak firefighting demand, reduced sales to specialty horticulture markets due to unfavorable pricing conditions, continued headwinds on processed foods market demand and pricing pressures due to the strong US dollar. Despite these challenges, we generated significant cash flow during the quarter which we used to increase returns to our shareholders. We repurchased more shares during the second quarter 2015 than the entire $50 million buyback program previously implemented in 2011, returning more than four times our net income to shareholders through buybacks and dividends. We have now completed nearly 70% of our announced $125 million share buyback program for 2015."

Mr. Gress concluded, "Given the 2015 margin compression that we are experiencing, we are currently evaluating several initiatives to improve the overall operating efficiency of the organization, targeting to at least cover the 100 basis points cost component of the margin compression. These initiatives may require various one-time costs such as capital spending, involuntary and/or voluntary separation costs. The various initiatives being reviewed include production unit consolidations and various staff reduction initiatives. We intend to conclude the evaluation of these initiatives and seek Board approval by the end of the third quarter 2015."

For earnings history and earnings-related data on Innophos Holdings (IPHS) click here.

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