OVERLAND PARK, Kan. (AP) â¿¿ Compass Minerals' second-quarter net income slid 32 percent because governments used so little of its road salt over the mild winter, and it warned Monday that large stockpiles meant for last year's use will lead to limited third-quarter sales.
Highway departments usually start storing sale in the third quarter to prepare for winter.
Still, the company beat most expectations for the most recent quarter and shares rose in a down day for the markets.
The company, which also sells fertilizer, expects third-quarter highway salt sales to fall to about 1 million tons, about half of last year's sales.Compounding the situation, the company said that reduced production in salt mines will cause inflated prices through the winter. Second-quarter net income was $9.5 million, or 28 cents per share, compared with $14 million, or 42 cents per share, a year earlier. The company said that excluding items such as losses from 2011 tornado damage at a facility in Canada and refinancing costs, it would have earned 31 cents per share. Analysts, who usually exclude items, had expected 26 cents per share, according to FactSet. Revenue fell slightly to $178.5 million from $179.9 million a year ago, but came in above analysts' forecast of $177.4 million. Shares of Compass Minerals International Inc. rose 77 cents to $74.91 in midday trading.
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