Compass Minerals Reports Fourth-Quarter Snow-Event Data
January 10 2018 - 9:00AM
Business Wire
Late start to winter pressured sales
volumes.
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.
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Compass MineralsInvestor ContactTheresa L.
WombleDirector of Investor
Relations+1.913.344.9362womblet@compassminerals.comorMedia
ContactTara HartManager of Corporate
Affairs+1.913.344.9319MediaRelations@compassminerals.com
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