Company reports reduced sales volumes in salt and plant nutrition
segments
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Jan. 7, 2016--
Limited winter weather activity throughout Compass Minerals’ (NYSE: CMP)
primary service areas significantly reduced demand for the company’s
deicing products in the fourth quarter.
Eleven representative cities in the company’s primary North American
highway deicing service area reported 17 snow events during the period,
which was 64 percent below the 10-year average of 47.3 events. The same
cities posted 35 events in the fourth quarter of 2014.
The company sold approximately 2.4 million tons of highway deicing salt
products in the fourth quarter of 2015, which was a 32 percent decline
from 2014 results. This total includes all highway maintenance products
sold in the U.S., Canada and the U.K., as well as rock salt sold to the
chemical industry. Sales of all salt products reached 3 million tons in
the 2015 period compared to 4.3 million tons in the fourth quarter of
2014.
Compass Minerals’ plant nutrition business was also pressured in the
fourth quarter, as a result of broad weakness in the agricultural
market. The company sold 62,000 tons of plant nutrition products in the
fourth quarter, which was below our guidance range of 80,000 tons to
100,000 tons, as well as prior-year results of 105,000 tons.
“While the key winter months are still ahead of us, fewer snow events
combined with above-average temperatures thus far have significantly
reduced salt demand. In addition, we continued to face headwinds in the
agriculture market where customers have been hesitant to make
purchases,” said Fran Malecha, Compass Minerals’ president and chief
executive officer. “We have implemented cost-reduction measures where
possible to mitigate the short-term impacts of mild winter weather and
agricultural market softness.”
The company’s fourth-quarter 2015 highway deicing sales volume and
regional weather data can be found on its website at www.compassminerals.com/investorresources.
The number of snow events reported may not directly correlate to Compass
Minerals’ deicing results due to a variety of factors, including the
relative significance to the company of the cities represented and
differences in the amount of salt purchased by customers to establish
their pre-season stockpiles. The weather data should be used only as an
indicator of the year-to-year variations in winter weather conditions in
these cities. Compass Minerals draws its weather data from the U.S.
National Weather Service and National Climatic Data Center, and
Environment Canada, without weighting or other adjustments.
About Compass Minerals
Compass
Minerals is a leading provider of essential minerals that provide
solutions to nature’s challenges, including salt for winter roadway
safety and other consumer, industrial and agricultural uses, and
specialty plant nutrition minerals that improve the quality and yield of
crops. Named one of Forbes’ 100 Most Trustworthy Companies in America in
2015, Compass Minerals’ mission is to be the best essential minerals
company by delivering where and when it matters. The company produces
its minerals at locations throughout the U.S. and Canada and in the U.K.
For more information about Compass Minerals and its products, please
visit www.compassminerals.com.
This press release may contain forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995. We use
words such as “may,” “would,” “could,” “should,” “will,”
“likely,” “expect,” “anticipate,” “believe,” “intend,” “plan,”
“forecast,” “outlook,” “project,” “estimate” and similar expressions
suggesting future outcomes or events to identify forward-looking
statements or forward-looking information. These statements are based on
the company's current expectations and involve risks and uncertainties
that could cause the company's actual results to differ materially. The
differences could be caused by a number of factors, including weather
conditions, pressure on prices and impact from competitive products, any
inability by us to fund necessary capital expenditures, foreign exchange
rates, and the cost and availability of transportation for the
distribution of our products. For further information on these and other
risks and uncertainties that may affect our business, see the “Risk
Factors” sections of our Annual Report on Form 10-K for the year ended
December 31, 2014. The company undertakes no obligation to update any
forward-looking statements made in this press release to reflect future
events or developments. Because it is not possible to predict or
identify all such factors, this list cannot be considered a complete set
of all potential risks or uncertainties.
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Source: Compass Minerals
Compass Minerals
Investor Contact:
Theresa L.
Womble, +1-913-344-9362
Director of Investor Relations
womblet@compassminerals.com
or
Media
Contact:
Tara Hart, +1-913-344-9319
Communications Manager
MediaRelations@compassminerals.com