Compass Minerals International Inc of Overland Park, KS has reported net earnings of US$7.9 million on revenue of US$331.5 million for its first quarter, the three months ended December 31, 2021.
The company’s Salt segment reported revenue of US$273.9 million, up 20% year-over-year, driven by a 24% increase in sales volumes, partially offset by a 3% decline in average sales price. Salt sales to the highway deicing market were 2.8 million tons versus 2.2 million tons in the prior year period. The average sales price fell from US$59.20/ton to US$58.34/ton.
Salt sales to the Consumer and Industrial markets increased from 579,000 tons to 633,000 tons and the market price increased from US$169.30/ton to US$174.00/ton.
Compass’ Plant Nutrition segment reported first quarter revenue of US$54.6 million, down 30% year-over-year, driven by lower sales volumes, partially offset by a 20% increase in average sales price. Sales volumes fell from 143,000 tons to 83,000 tons and the average sales price increased from US$548/ton to US$660/ton.
Kevin S Crutchfield, Compass’ CEO, said, “We expect inflationary pressures and higher logistical costs to dampen our underlying earnings potential over the course of the fiscal year. In response, we are focused on offsetting these costs through continued pricing actions in our Plant Nutrition and consumer and industrial businesses, as well as throughout the upcoming highway salt bid season. Concurrently, as we advance our growth strategy into attractive, adjacent markets — lithium and next-generation fire retardants — I am confident these actions should result in attractive returns on capital, driving long-term value for shareholders.”
Volume 36, Issue 03