Compass Minerals Provides First-Quarter Snow Data, Segment Sales and COVID-19 Impact Updates

Compass Minerals (NYSE: CMP), a leading global provider of essential minerals, reported today that first-quarter 2020 winter weather activity in both its North American and U.K.-served markets was below average, resulting in lower-than-expected highway deicing salt sales volumes.

Eleven representative cities in the company’s primary North American highway deicing service area reported 85 snow events during the first quarter of 2020 compared to 122 snow events in the first quarter of 2019 and the 10-year average of 111.5 events.

While these snow event results represent a decline of 30% from first-quarter 2019 levels and winter weather was extremely mild in the U.K., the company’s highway deicing sales volumes declined only 11% compared to prior-year results. The company sold approximately 3.1 million tons of highway deicing salt products in the first quarter of 2020 compared to 3.5 million tons in the first quarter of 2019. 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 first quarter of 2020, compared to 4.1 million tons in the prior-year period.

Despite these results and other business challenges related to the spread of and global response to COVID-19, the company expects to deliver strong first-quarter earnings growth across all three segments with first-quarter 2020 consolidated operating earnings increasing more than 25% from prior-year results. These improvements are driven by strong pricing in the Salt business, as well as improved agriculture market conditions in both North and South America.

Preliminary Plant Nutrition sales volume results indicate strong demand compared to first-quarter 2019 results. Plant Nutrition North America sold approximately 96,000 tons in the 2020 first quarter, a 68% increase from 2019 first-quarter results. Plant Nutrition South America sales volumes totaled approximately 158,000 tons, including 68,000 tons of agriculture sales and 90,000 tons of chemical solutions sales, an increase of 31% and 10% respectively from 2019 first-quarter results.

“While we can’t influence the weather or fully control the impact of the current pandemic, the operational improvements we are beginning to realize, particularly at our Goderich mine, and improved market conditions for our specialty plant nutrition products continue to drive growth for the company,” said Kevin S. Crutchfield, president and CEO. “The well-being of our employees remains our top priority and thanks to their ability to adjust to the challenges posed by this health crisis, our business has experienced limited impacts from COVID-19 thus far. Given the essential nature of our products, the resilience of our key markets and ample liquidity, we are well-positioned to weather this period of uncertainty.”