Compass Minerals Reports First-Quarter Snow-Event Data
April 10 2017 - 9:00AM
Business Wire
Mild winter weather reduces salt sales
volumes
Compass Minerals (NYSE: CMP) reported that below-average winter
weather in its primary North American service areas depressed
first-quarter 2017 highway deicing salt sales approximately 6
percent from 2016 results.
“After a solid start to the winter, we are disappointed that
snowfall and cold temperatures did not persist through the first
quarter of 2017. As a result, we anticipate lower-than-expected
highway deicing bid volumes in some of our key North American
markets,” said Fran Malecha, Compass Minerals’ president and CEO.
“We expect to offset some of the challenges from the mild winter
weather by aggressively managing our cost structure. In addition,
we are encouraged by the performance of our plant nutrition
business.”
The company will provide an update to its outlook in its
first-quarter earnings release on May 3, 2017.
Eleven representative cities in the company’s primary North
American highway deicing service area reported 70 snow events
during the period, compared to 84 in the first quarter of 2016 and
the 10-year average of 116 events. For the full winter season, snow
events totaled 120, which was 19 percent greater than the prior
winter but 24 percent below the 10-year average.
The company sold approximately 3.5 million tons of highway
deicing salt products in the first quarter of 2017, compared to 3.7
million tons in the first quarter of 2016. 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 4.0 million tons in the 2017 period, compared
to 4.2 million tons in the fourth quarter of 2016.
The company’s first-quarter 2017 highway deicing sales volume
and regional weather data can be found on its website at
www.compassminerals.com/investorresources. 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 bid volumes,
cost structure and its outlook. 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, and (v) the ability to successfully integrate
acquired businesses. 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 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.
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version on businesswire.com: http://www.businesswire.com/news/home/20170410005459/en/
Compass MineralsInvestor ContactTheresa L. Womble,
+1-913-344-9362Director of Investor
Relationswomblet@compassminerals.comorMedia ContactTara
Hart, +1-913-344-9319Manager of Corporate
AffairsMediaRelations@compassminerals.com
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