Compass Minerals Provides Fiscal 2022 First-Quarter Snow Data and Salt Segment Sales

Rhea-AI Summary

Compass Minerals (NYSE: CMP) reported a decline in winter weather activity for Q1 of fiscal 2022, with only 29 snow events compared to 45 in the prior year and a ten-year average of 41.9. This resulted in lower-than-expected salt sales, despite selling approximately 2.8 million tons of highway deicing products, a rise from 2.2 million tons last year. The CEO expressed optimism about the remaining winter season and the company's capacity to meet customer needs. The company emphasizes its reliance on weather conditions for deicing business performance.

Positive

• Sold approximately 2.8 million tons of highway deicing salt products, an increase from 2.2 million tons year-over-year.
• Total salt product sales reached approximately 3.4 million tons, up from 2.8 million tons in the previous comparable period.

Negative

• Q1 winter weather activity was below prior-year levels and ten-year averages, impacting sales.
• Mild weather across North America resulted in lower salt sales than forecasted based on average winter conditions.

OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, reported today that fiscal 2022 first-quarter winter weather activity in its North American-served market was below both prior-year comparable period levels and the ten-year historic average for the comparable period. Due to its previously announced fiscal year-end change, fiscal 2022 first quarter represents the period from Oct. 1, 2021, through Dec. 31, 2021. Historically, the quarterly period ending Dec. 31 represents approximately 28% of the snow events experienced in North America per winter season.

Eleven representative cities in the company’s primary North American highway deicing service area reported a total of 29 snow events during the fiscal 2022 first quarter versus 45 snow events during the prior-year comparable period and the ten-year average of 41.9 events. While winter weather in the quarter was average in a number of northern served markets including Detroit, Minneapolis and Toronto, the Chicago to Milwaukee corridor experienced a minimal number of snow events, with just two for the entire period.

“The performance of our highway deicing business is dependent on several factors, weather activity being a significant one. Mild weather conditions experienced across a significant portion of our North American markets resulted in salt sales for the fiscal 2022 first quarter lower than our forecast based on average winter weather,” said Kevin S. Crutchfield, president and CEO. “While we cannot control the weather, there is still a substantial portion of the winter season ahead of us and we believe we are well positioned to serve our customers’ needs when and where it matters.”

The company sold approximately 2.8 million tons of highway deicing salt products during the fiscal 2022 first-quarter period versus sales volumes of 2.2 million tons in the prior-year comparable period. 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 approximately 3.4 million tons in the company’s fiscal 2022 first quarter versus 2.8 million tons in the prior-year comparable period.

Snow Events Note: A snow event is defined as any day that snowfall exceeds 1 inch or 2.5 cm of snow. 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 Centers for Environmental Information and Environment Canada without weighting or other adjustments.

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 and agricultural applications. Its plant nutrition business manufactures products that improve the quality and yield of crops, while supporting sustainable agriculture. And its specialty chemical business serves the water treatment industry and other industrial processes. Additionally, the company is pursuing development of a sustainable lithium brine resource to support the North American battery market and is a minority owner of Fortress North America, a next-generation fire retardant company. Compass Minerals operates 15 production and packaging facilities with more than 2,000 employees throughout the U.S., Canada, the U.K. and Brazil. Visit compassminerals.com for more information about the company and its products.

Forward Looking Statements

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 the company’s ability to serve customer needs. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. 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) foreign exchange rates and the cost and availability of transportation for the distribution of the company’s products, (iii) pressure on prices and impact from competitive products, (iv) any inability by the company to successfully implement its strategic priorities or its cost-saving or enterprise optimization initiatives, (v) the risk that the company may not realize the expected financial or other benefits from the proposed development of its lithium mineral resource or its investment in Fortress North America, (vi) the timing and the outcome of the sale process for the company’s South America chemicals business, and (vii) impacts of the COVID-19 pandemic. 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 Transition Report on Form 10-KT for the transition period ended Sept. 30, 2021 and the company’s Quarterly Report on Form 10-Q for the quarter ended December 31, 2021 filed or to be filed with the SEC, as well as the company’s other SEC filings. 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. 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220106005909/en/

Media Contact

Rick Axthelm

Chief Public Affairs and Sustainability Officer

+1.913.344.9198

MediaRelations@compassminerals.com

Investor Contact

Douglas Kris

Senior Director of Investor Relations

+1.917.797.4967

krisd@compassminerals.com

Source: Compass Minerals

FAQ

What were Compass Minerals' Q1 sales figures for 2022?

Compass Minerals sold approximately 2.8 million tons of highway deicing salt products in Q1 2022.

How did winter weather affect Compass Minerals in Q1 2022?

The company experienced 29 snow events, significantly lower than the 45 events in the prior year and below the ten-year average of 41.9.

What is the outlook for Compass Minerals following Q1 2022 results?

Despite lower sales due to mild weather, the CEO stated there is substantial winter season ahead and expressed confidence in meeting customer needs.