This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Compass Minerals Reports Fourth-Quarter 2012 Earnings

Operating earnings in the salt segment were $47.9 million compared to $53.4 million in the prior-year quarter primarily due to reduced deicing sales and the effect of lower sales volumes on per-unit product costs, partially offset by lower estimated losses from the effects of the 2011 tornado in Goderich, Ontario. Excluding tornado-related losses from both years, the company estimates that salt segment operating earnings in the 2012 quarter would have been approximately $51.0 million compared to $69.8 million in the 2011 period.

The company estimates that tornado-related losses totaled approximately $21.4 million for the full 2012 year and $16.4 million in 2011. The company does not expect to report any material estimated losses related to the effects of the tornado in 2013.

 
Salt Segment Performance

(in millions except for sales volumes and prices per short ton)

  Three months ended

December 31,

  Twelve months ended

December 31,

2012   2011 2012   2011
Sales $ 206.7 $ 250.1 $ 703.4 $ 885.3
Sales less shipping and handling (product sales) $ 152.5 $ 177.1 $ 491.5 $ 616.8
Operating earnings $ 47.9 $ 53.4 $ 126.0 $ 184.7
Operating margin 23 % 21 % 18 % 21 %
Sales volumes (in thousands of tons):
Highway deicing 2,255 2,724 7,530 10,235
Consumer and industrial   585     675     2,095     2,285  
Total salt 2,840 3,399 9,625 12,520
Average sales price (per ton):
Highway deicing $ 52.56 $ 52.86 $ 53.11 $ 52.30
Consumer and industrial $ 150.95 $ 156.97 $ 144.87 $ 153.12
Total salt   $ 72.81     $ 73.56     $ 73.08     $ 70.71  
 

Winter Weather Effect

Weather in the fourth quarter of 2012 was very mild in Compass Minerals’ North American service area until the final two weeks of the quarter, and the company estimates this milder-than-average weather reduced the company’s fourth-quarter salt sales by $60 million to $70 million and its salt operating earnings by $15 million to $20 million. Variations from average winter weather reduced full-year salt sales by an estimated $145 million to $155 million and salt operating earnings by $45 million to $50 million.

 

Estimated Effect of Weather on Salt Segment Performance (in millions)

  Three months ended

December 31,

  Calendar year,*

Favorable (unfavorable) to average weather:

2012   2011 2012   2011
 

Sales

($60) to ($70) ($55) to ($65) ($145) to ($155) ($55) to ($65)
 

Operating earnings

  ($15) to ($20)   ($15) to ($20)   ($45) to ($50)   ($15) to ($20)

* The three months ended March 31, plus the three months ended December 31.

The full-year winter weather effect reflects the impact of exceptionally mild winter weather throughout the company’s primary North American service area. Based on data from eleven representative cities, the company’s core North American service regions posted the third fewest snowfall events in recent history. Only the calendar years of 1998 and 2006 recorded fewer snow events.

2 of 7

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs