Compass Minerals (NYSE: CMP) reports that increased snow activity in its core service areas pushed its highway deicing sales volumes well above the company’s 2012 results. Compass Minerals’ highway deicing business sold 4.0 million tons in the three months ended December 2013 compared with sales of 2.3 million tons in the 2012 quarter. This result 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.
Eleven representative cities in the company’s primary North American highway deicing service area reported a total of 81 snow events during the period compared with a 10-year average of 44.8 events. The same cities posted only 36 events in the fourth quarter of 2012.
“The start to the winter season has been just what we needed in order to begin to rebalance the supply-demand dynamics of the North American highway deicing market,” said Fran Malecha, Compass Minerals’ president and chief executive officer. “The frequent and widespread snowfall throughout our service territories has supported higher sales of packaged consumer and professional deicing salt as well.”
The company has published its fourth-quarter 2013 highway deicing sales volume and regional weather data on its website at www.compassminerals.com/marketdata. 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, Environment Canada, and AccuWeather, Inc. without weighting or other adjustments.About Compass Minerals Based in the Kansas City metropolitan area, Compass Minerals is a leading producer of minerals, including salt, sulfate of potash specialty fertilizer and magnesium chloride. The company provides highway deicing salt to customers in North America and the United Kingdom and specialty fertilizer to growers worldwide. Compass Minerals also produces consumer deicing and water conditioning products, ingredients used in consumer and commercial foods, and other mineral-based products for consumer, agricultural and industrial applications. For more information, visit www.compassminerals.com.