Compass Minerals Provides Fiscal 2022 First-Quarter Snow Data and Salt Segment Sales
January 06 2022 - 5:00PM
Business Wire
Compass Minerals (NYSE: CMP), a leading global provider of
essential minerals, reported today that fiscal 2022 first-quarter
winter weather activity in its North American-served market was
below both prior-year comparable period levels and the ten-year
historic average for the comparable period. Due to its previously
announced fiscal year-end change, fiscal 2022 first quarter
represents the period from Oct. 1, 2021, through Dec. 31, 2021.
Historically, the quarterly period ending Dec. 31 represents
approximately 28% of the snow events experienced in North America
per winter season.
Eleven representative cities in the company’s primary North
American highway deicing service area reported a total of 29 snow
events during the fiscal 2022 first quarter versus 45 snow events
during the prior-year comparable period and the ten-year average of
41.9 events. While winter weather in the quarter was average in a
number of northern served markets including Detroit, Minneapolis
and Toronto, the Chicago to Milwaukee corridor experienced a
minimal number of snow events, with just two for the entire
period.
“The performance of our highway deicing business is dependent on
several factors, weather activity being a significant one. Mild
weather conditions experienced across a significant portion of our
North American markets resulted in salt sales for the fiscal 2022
first quarter lower than our forecast based on average winter
weather,” said Kevin S. Crutchfield, president and CEO. “While we
cannot control the weather, there is still a substantial portion of
the winter season ahead of us and we believe we are well positioned
to serve our customers’ needs when and where it matters.”
The company sold approximately 2.8 million tons of highway
deicing salt products during the fiscal 2022 first-quarter period
versus sales volumes of 2.2 million tons in the prior-year
comparable period. 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 approximately 3.4 million tons in the company’s fiscal 2022
first quarter versus 2.8 million tons in the prior-year comparable
period.
Snow Events Note: A snow event is defined as any day that
snowfall exceeds 1 inch or 2.5 cm of snow. 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
Centers for Environmental Information and Environment Canada
without weighting or other adjustments.
About Compass Minerals
Compass Minerals (NYSE: CMP) is a leading global provider of
essential minerals focused on safely delivering where and when it
matters to help solve nature’s challenges for customers and
communities. The company’s salt products help keep roadways safe
during winter weather and are used in numerous other consumer,
industrial and agricultural applications. Its plant nutrition
business manufactures products that improve the quality and yield
of crops, while supporting sustainable agriculture. And its
specialty chemical business serves the water treatment industry and
other industrial processes. Additionally, the company is pursuing
development of a sustainable lithium brine resource to support the
North American battery market and is a minority owner of Fortress
North America, a next-generation fire retardant company. Compass
Minerals operates 15 production and packaging facilities with more
than 2,000 employees throughout the U.S., Canada, the U.K. and
Brazil. Visit compassminerals.com for more information about the
company and its products.
Forward Looking Statements
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 the company’s
ability to serve customer needs. Forward-looking statements are
those that predict or describe future events or trends and that do
not relate solely to historical matters. 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) foreign exchange
rates and the cost and availability of transportation for the
distribution of the company’s products, (iii) pressure on prices
and impact from competitive products, (iv) any inability by the
company to successfully implement its strategic priorities or its
cost-saving or enterprise optimization initiatives, (v) the risk
that the company may not realize the expected financial or other
benefits from the proposed development of its lithium mineral
resource or its investment in Fortress North America, (vi) the
timing and the outcome of the sale process for the company’s South
America chemicals business, and (vii) impacts of the COVID-19
pandemic. 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
Transition Report on Form 10-KT for the transition period ended
Sept. 30, 2021 and the company’s Quarterly Report on Form 10-Q for
the quarter ended December 31, 2021 filed or to be filed with the
SEC, as well as the company’s other SEC filings. The company
undertakes no obligation to update any forward-looking statements
made in this press release to reflect future events or
developments, except as required by law. 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: https://www.businesswire.com/news/home/20220106005909/en/
Media Contact Rick Axthelm Chief Public Affairs and
Sustainability Officer +1.913.344.9198
MediaRelations@compassminerals.com
Investor Contact Douglas Kris Senior Director of Investor
Relations +1.917.797.4967 krisd@compassminerals.com
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