Compass Minerals International Inc of Overland Park, KS has reported a fiscal second quarter 2022 net loss of US$12.1 million on revenue of US$448.5 million versus a net loss of US$214.4 million on revenue of US$425.5 million in the first quarter of 2021.
Kevin Crutchfield, Compass’ CEO, said, “Compass Minerals delivered year-over-year revenue growth during the quarter, in large part enabled by our expanded Salt commitments and strong Plant Nutrition pricing. Unfortunately, intensifying inflationary pressures — particularly related to escalating fuel surcharges — and ongoing SOP production challenges continued to compress profitability to levels below what I believe is our normalized earnings potential. We are focused on mitigating the impact of these challenges to the extent possible through continued pricing actions, executing a successful North America highway salt bid season, balancing production volumes with expected demand to improve margin capture, and targeted productivity initiatives. Despite these persistent cost headwinds, we continue to advance our position as a premier essential minerals company through our efforts to expand into select, high-value adjacent markets to create long-term value for our shareholders.”
Compass’ second quarter Salt sales totaled US$391.3 million, a 6% increase over the prior year quarter, reflecting a 6% increase in sales volumes. The salt segment’s average selling prices, at US$73.39/ton, were flat year-over-year with a 3% decline in highway deicing average price, to US$62.31/ton, partially offset by a 9% increase in C&I (consumer and industrial markets) to US$176.86/ton.
The segment’s operating earnings in the second quarter decreased US$44.1 million to US$49.3 million.
Compass’ Plant Nutrition segment generated second quarter revenue of US$54.3 million, up from the prior year’s US$53.7 million. Sales volumes declined from 94,000 tons to 74,000 tons while average selling prices increased from US$573/ton to US$736/ton. The segment’s operating earnings declined from US$5.3 million to US$4.4 million.
Volume 36, Issue 10