Compass Minerals announced a renewed focus on generating higher cash flow and returns on capital from core businesses and the termination of its lithium project.

“We are refocusing our efforts on improving cash flow generation and returns on capital in our core Salt and Plant Nutrition businesses through rigorous cost management and reduced capital intensity,” said Edward Dowling, president and CEO. “Over many decades, our company has developed an exceptional set of unique assets that are virtually irreplicable, enjoy durable competitive advantages and have strong leadership positions in the marketplace. I am confident that by executing on a strategy that emphasizes getting back to the basics in our core businesses while nurturing the growth of our emerging Fire Retardants business, we will increase the cash generation capability of our enterprise, drive higher returns on capital and unlock the intrinsic value of our business for our shareholders over time.”

Other highlights reported by the company include:

• Adjusted EBITDA of $59.4 million on similar margins year over year
• In the Salt business, reported a 7% and 8% increase year over year in both operating earnings and adjusted EBITDA, respectively, with a nearly 33% improvement in adjusted EBITDA per ton to $23.01 compared to the corresponding period last year
• Plant Nutrition sales volumes increased 67% year over year to 75,000 tons, reflecting the normalization of demand in core West Coast markets versus the comparable prior-year period
• Announced reduction in 2024 capital expenditure guidance by 6% at midpoint, reflecting an initial step toward realigning investment priorities to reduce capital intensity and improve returns on capital

View the full release and Fiscal 2024 First-Quarter Business Update here.