Compass Minerals Provides Fiscal 2022 Second-Quarter Snow Data and Salt Segment Sales Volume Update

Rhea-AI Summary

Compass Minerals (NYSE: CMP) reported above-average winter weather activity in fiscal 2022 Q2, with 114 snow events, 10% over the 10-year average. This increase helped bring winter conditions closer to the average for the fiscal year. The company sold approximately 4.8 million tons of highway deicing salt products in Q2, rising from 4.6 million tons year-over-year. Despite a slow start to the season, CEO Kevin S. Crutchfield emphasized ongoing efforts to recover inflationary costs and restore profitability in the Salt business.

Positive

• Sales of highway deicing salt increased to 4.8 million tons in Q2 from 4.6 million tons year-over-year.
• Total sales of all Salt products rose to approximately 5.3 million tons in Q2, compared to 5.0 million tons in the prior-year quarter.

Negative

• Winter weather activity in the first quarter was slow, impacting early season sales.

OVERLAND PARK, Kan.--(BUSINESS WIRE)-- Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, today reported above-average fiscal 2022 second-quarter winter weather activity in its North American-served market compared to the 10-year historical average. When coupled with the fiscal 2022 first-quarter activity, this resulted in a relatively average winter for the full season ended March 2022 when compared to the 10-year historical average.

Eleven representative cities in the company’s primary North American highway deicing service area reported a total of 114 snow events during the fiscal 2022 second quarter, which was approximately 10% above the 10-year average and approximately 14% above the prior-year comparable period.

“Following a slow start to the winter season, the above-average number of winter weather events we experienced during the second quarter brought us closer to average winter weather for the full fiscal year,” said Kevin S. Crutchfield, president and CEO. “As we enter the upcoming bid season, we remain focused on recapturing the significant inflationary costs that we have experienced and restoring the profitability of our Salt business.”

The company sold approximately 4.8 million tons of highway deicing salt products in the fiscal 2022 second quarter compared to 4.6 million tons in the prior-year 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 were approximately 5.3 million tons in the fiscal 2022 second quarter compared to 5.0 million tons in the prior-year comparable quarter.

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 upcoming bid season and the company’s efforts to recapture inflationary costs and restore profitability. 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 Reports on Form 10-Q for the quarters ended December 31, 2021 and March 31, 2022 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, expect 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/20220411005830/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 the sales figures for Compass Minerals in Q2 2022?

Compass Minerals sold approximately 4.8 million tons of highway deicing salt products in Q2 2022.

How did winter weather activity in Q2 2022 compare to historical averages for Compass Minerals?

The company reported 114 snow events in Q2 2022, which was about 10% above the 10-year average.

What is Compass Minerals' strategy to improve profitability?

Compass Minerals aims to recapture significant inflationary costs and restore profitability in its Salt business.

How do snow events affect Compass Minerals' business?

Snow events are indicators of winter weather conditions, which influence demand for deicing salt products.