Mild winter weather reduces salt sales volumes
OVERLAND PARK, Kan.--(BUSINESS WIRE)--Apr. 10, 2017--
Compass Minerals (NYSE: CMP) reported that below-average winter weather
in its primary North American service areas depressed first-quarter 2017
highway deicing salt sales approximately 6 percent from 2016 results.
“After a solid start to the winter, we are disappointed that snowfall
and cold temperatures did not persist through the first quarter of 2017.
As a result, we anticipate lower-than-expected highway deicing bid
volumes in some of our key North American markets,” said Fran Malecha,
Compass Minerals’ president and CEO. “We expect to offset some of the
challenges from the mild winter weather by aggressively managing our
cost structure. In addition, we are encouraged by the performance of our
plant nutrition business.”
The company will provide an update to its outlook in its first-quarter
earnings release on May 3, 2017.
Eleven representative cities in the company’s primary North American
highway deicing service area reported 70 snow events during the period,
compared to 84 in the first quarter of 2016 and the 10-year average of
116 events. For the full winter season, snow events totaled 120, which
was 19 percent greater than the prior winter but 24 percent below the
10-year average.
The company sold approximately 3.5 million tons of highway deicing salt
products in the first quarter of 2017, compared to 3.7 million tons in
the first quarter of 2016. 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 totaled 4.0
million tons in the 2017 period, compared to 4.2 million tons in the
fourth quarter of 2016.
The company’s first-quarter 2017 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 solve
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 and
2016, 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., Canada, Brazil and 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,
including without limitation statements about bid volumes, cost
structure and its outlook. 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 without limitation (i) weather conditions, (ii)
pressure on prices and impact from competitive products, (iii) any
inability by the company to fund necessary capital expenditures or
successfully implement any capital projects, (iv) foreign exchange rates
and the cost and availability of transportation for the distribution of
the company’s products, and (v) the ability to successfully integrate
acquired businesses. For further information on these and other risks
and uncertainties that may affect the company’s business, see the “Risk
Factors” and “Management’s Discussion and Analysis of Financial
Condition and Results of Operations” sections of the company’s Annual
Report on Form 10-K for the year ended December 31, 2016 filed with the
SEC. 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
Manager of Corporate
Affairs
MediaRelations@compassminerals.com