Diluted EPS for the second quarter 2011 was $0.92 compared to $0.79 for the second quarter 2010. Excluding the water duties charge mentioned above, second quarter 2011 EPS would have been $0.93.
"We are pleased with our second quarter results, which, with the exception of the impact of temporary production issues in Mexico, were delivered much as expected,” said Randy Gress, CEO. “Our US & Canada business continued to perform well, delivering volume growth driven by demand for our key differentiated products.
“In Mexico, our Specialty Phosphates business continued to achieve double-digit Specialty Ingredients growth with the temporary production issues primarily affecting shipments of other products,” he added. “This business has made a strong start to the third quarter and remains on track to deliver significantly improved profitability in 2011.”
While operating margins were lower than the elevated first quarter level, this was as expected as higher market raw material costs worked their way through cost of goods sold, he said.
Specialty Phosphates sales revenue was up 5 percent year over year with prices up 6 percent. Volumes were down 1 percent due to a production shortfall in Mexico resulting in volumes in that segment down 14 percent year over year and 23 percent sequentially. US/Canada volume was up 3 percent year over year as growth in Specialty Ingredients and Food & Technical Grade PPA exceeded STPP declines, but was flat sequentially due to the effects of mid-west flooding that limited technical grade PPA sales to the agricultural markets.
US/Canada Specialty Phosphates sales increased 7 percent for second quarter 2011 compared to second quarter 2010 on 4 percent price increases and 3 percent volume growth.
The Specialty Phosphates business in Mexico showed a 2 percent revenue decrease from second quarter 2010. Prices were up 12 percent, but volumes decreased 14 percent year over year arising from temporary production issues following the first quarter maintenance turnaround. This resulted in a 23 percent sequential volume decline that primarily affected the Food & Technical Grade PPA and the STPP & Detergent Grade PPA product lines with the Specialty Ingredients product line continuing to show strong year over year growth.