Innophos forecasts steep jump in raw material costs by 2009

CRANBURY, N.J.—Phosphate provider Innophos Holdings Inc. said Monday that it expects raw-material costs to rise by up to 60 percent of its total 2007 sales, or $347.4 million, due in part to market conditions.

The company said if current market prices for phosphate rock and sulfur stay at their current levels, its own costs will rise by the second quarter of 2009.

Traditionally, Innophos has raised its prices to match the jump in materials.

"We benefit from a flexible production infrastructure that allows us to adjust to customer demand shifts in the current environment," Chief Executive Randy Gress said in a release. "Through price actions and operating improvements, we expect to again expand operating profit and margins in 2008."

Innophos posted revenue of $579 million in 2007.

Analysts polled by Thomson Financial expect, on average, 2008 earnings of $1.29 per share on revenue of $684.6 million.

Shares spiked $5.68, or 31.2 percent, to $23.90 in aftermarket trading.