Compass Minerals Announces Cost Structure Reductions to Align With Current Business Needs
Company Eliminates Over
Shutters Fire Retardant Business
As one part of the cost-saving initiatives, Compass Minerals reduced its corporate cost structure by eliminating over
“Decisions such as these are never easy, but our board of directors and senior leadership team took a hard look at our cost structure and determined these actions were necessary to enable us to generate additional cash flow and accelerate our deleveraging,” said Edward C. Dowling Jr, president and CEO. “I’m grateful to departing employees for their service and to those remaining who will help us chart a new path in this next chapter. Moving forward, our company will be leaner with an intense focus on getting back to the basics of our core Salt and Plant Nutrition businesses in order to become a stronger and more profitable company.”
Today’s actions build upon Compass Minerals’ previously announced cost control efforts, including the company’s ongoing efforts to align capital expenditures with the cash generation performance of the business. In the coming months, the company plans to further scrutinize costs across the platform to identify potential additional cost-reduction opportunities, including the evaluation of contracts, operational costs and semi-variable costs.
Using the approach for calculating adjusted EBITDA that is typically used for this type of activity under the company’s existing debt instruments, the company estimates that run-rate cost savings for the trailing 12-month period ended Dec. 31, 2024, would be in the range of
About Compass Minerals
Compass Minerals (NYSE: CMP) is a leading global provider of essential minerals focused on safely delivering where and when it matters to help solve nature’s challenges for customers and communities. The company’s salt products help keep roadways safe during winter weather and are used in numerous other consumer, industrial, chemical and agricultural applications. Its plant nutrition products help improve the quality and yield of crops while supporting sustainable agriculture. Compass Minerals operates 12 production and packaging facilities with more than 1,800 employees throughout the
Forward-Looking Statements and Other Disclaimers
This press release may contain forward-looking statements, including, without limitation, statements about the company’s future costs, profitability, free cash flow and salt inventory volumes, and the company’s intent to refinance its debt stack, retire debt and identify potential additional cost-reduction opportunities at its production and packaging sites. These statements are based on the company’s current expectations, estimates and projections and involve risks and uncertainties that could cause the company’s actual results to differ materially. The differences could be caused by several factors including those factors identified in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the company’s Annual and Quarterly Reports on Forms 10-K and 10-Q, including any amendments, as well as the company’s other SEC filings. Opinions expressed are current opinions as of the date hereof. Investors are cautioned not to place undue reliance on such forward-looking statements and should rely on their own assessment of an investment. The company undertakes no obligation to update any forward-looking statements made in this press release to reflect future events or developments, except as required by law.
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Investor Contact
Brent Collins
Vice President, Treasurer & Investor Relations
+1.913.344.9111
InvestorRelations@compassminerals.com
Media Contact
Kevin Gabriel
Senior Director, Corporate Affairs
+1.913.344.9265
MediaRelations@compassminerals.com
Source: Compass Minerals