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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): December 7, 1999
PHOSPHATE RESOURCE PARTNERS LIMITED PARTNERSHIP
(Exact name of Registrant as specified in its charter)
Commission File Number: 1-9164
Delaware 36-3492467
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
2100 Sanders Road 60062
Northbrook, Illinois (Zip Code)
(Address of principal executive
offices)
Registrant's telephone number, including area code: (847)272-9200
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Item 5. Other Events.
The following is the text of a press release issued by Phosphate
Resource Partners Limited Partnership on December 7, 1999.
Phosphate Resource Partners to Record Estimated Fourth
Quarter Special Charges of Approximately $85 Million;
Estimated Savings to Benefit Annual Earnings by $20 Million
NORTHBROOK, IL, December 7, 1999 -- Phosphate Resource
Partners Limited Partnership (NYSE: PLP) announced today
that it will record estimated special charges totaling $85
million, or $0.82 per unit, in the fourth quarter of 1999.
The charges result from a non-cash loss from the previously
disclosed exit of an oil and gas exploration/development
program and PLP's share of rightsizing and restructuring of
IMC-Agrico Company's phosphate business announced separately
today by IMC Global (NYSE: IGL), PLP's administrative
managing general partner and 51.6 percent owner. IMC-Agrico
is a joint venture partnership formed in 1993 between PLP
and IMC Global. PLP's ownership of IMC-Agrico is 41.5
percent.
The phosphate charges primarily include: (a) asset write-
offs associated with previously announced closures of the
Nichols, Payne Creek and Noralyn facilities; and (b) costs
for job eliminations, facility demolition and closure, and
environmental remediation.
The cash impact of the fourth quarter special charges is
projected to be about $22 million, with approximately $14
million affecting 2000. Annual savings, beginning in 2000,
are estimated to be about $20 million, or $0.19 per unit.
The phosphate mine and plant closures, a rightsizing
commensurate with a major downturn in the industry cycle,
result from a facilities optimization program designed to
reduce rock and concentrate production costs through higher
utilization rates at the lowest-cost facilities.
"We are delivering on a commitment to rightsize and
restructure for current and future industry conditions
through significant cost improvements and asset reductions,
and improve PLP's ongoing earnings and cash flow," said
Douglas A. Pertz, President and Chief Executive Officer of
IMC Global. "This comprehensive and aggressive phosphate
program is very strong and necessary medicine to take during
this difficult industry climate, including a weak North
American farm economy and significantly depressed phosphate
selling prices."
In addition to the annual savings from the restructuring
program described above, PLP will continue to generate
operating cost benefits from IMC-Agrico's Project Profit
initiative that is on target to achieve at least $100
million cost savings over the two-year period ending
December 31, 2000, with more that $50 million to be realized
in 1999.
PLP recently announced further significant production
cutbacks in IMC-Agrico's phosphate business in response to
continued low industry demand.
Phosphate Resource Partners Limited Partnership is engaged
in the production and sale of phosphate crop nutrients and
animal feed ingredients. For more information, visit the
PLP Web site at www.phosplp.com.
This news release contains forward-looking statements that
involve risks and uncertainties. These statements are based
on current expectations; actual results may differ
materially. Among the factors that could cause actual
results to differ materially are general business and
economic conditions in localities where the Company
operates; the impact of competitive products; pressure on
prices realized by the Company for its products; constraints
on supplies or raw materials used in manufacturing certain
of the Company's products; capacity constraints limiting the
production of certain products; difficulties or delays in
the development, production, testing and marketing of
products; difficulties or delays in receiving required
governmental and regulatory approvals; market acceptance
issues, including the failure of products to generate
anticipated sales levels; difficulties rationalizing
acquired businesses and in realizing related cost savings
and other benefits; the effects of and changes in trade,
monetary and fiscal policies, laws and regulations; foreign
exchange rates and fluctuations in those rates; the costs
and effects of legal, including environmental, and
administrative proceedings involving the Company; and the
other risk factors reported from time to time in the
Company's SEC reports.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this amendment to be signed on its behalf
by the undersigned, thereunto duly authorized.
PHOSPHATE RESOURCE PARTNERS
LIMITED PARTNERSHIP
By: IMC GLOBAL INC.,
It's Administrative Managing
General Partner
By: /s/ J. Bradford James
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J. Bradford James
Executive Vice President and
Chief Financial Officer
Date: December 22, 1999
