Compass Minerals Reports Fourth-Quarter Snow-Event Data
Late start to winter pressured sales volumes.
OVERLAND PARK, Kan.–(BUSINESS WIRE)–Compass Minerals (NYSE: CMP) reported above-average winter weather in
its primary North American service areas, while the company’s highway
deicing sales volumes were slightly below the 10-year average.
Eleven representative cities in the company’s primary North American
highway deicing service area reported 57 snow events during the fourth
quarter of 2017, compared to 50 in the fourth quarter of 2016 and the
10-year average of 45.2 events.
The company sold approximately 3 million tons of highway deicing salt
products in the period, which was essentially unchanged from 2016
fourth-quarter 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 totaled 3.6
million tons in the 2017 period compared to 3.7 million tons in the
fourth quarter of 2016.
“We are pleased to see improved snow event activity so far this winter,
although much of the increase occurred in cities in the eastern portion
of our market, which is typically a lower sales volume area for us,”
said Fran Malecha, Compass Minerals’ president and CEO. “The
continuation of strong winter weather in early 2018, however, bodes well
for the underlying market fundamentals of the North American salt
business in 2018 and beyond.”
Although total snow event activity was above average, much of the
activity occurred in the last half of December, with 15 snow events
occurring in the last week of the month. This is expected to shift some
sales into the first quarter of 2018 as customers replenish inventories.
Snow Events Note: 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 expected market
fundamentals and shift of sales to 2018. 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, (v) the ability to
successfully integrate acquired businesses, and (vi) any inability by
the company to successfully implement its restructuring plans or
cost-saving initiatives. 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 and 2017 and
its Quarterly Reports on Form 10-Q for the quarters ended March 31, June
30 and September 30, 2017 filed or to be 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.
Contacts
Compass Minerals
Investor Contact
Theresa L.
Womble
Director of Investor Relations
+1.913.344.9362
[email protected]
or
Media
Contact
Tara Hart
Manager of Corporate Affairs
+1.913.344.9319
[email protected]
