Compass Minerals Reports Solid First Quarter 2019 Earnings

Compass Minerals reported strong year-over-year operating earnings growth for the first quarter of 2019 driven by better-than-expected results in its Salt business, which more than offset weakness in its Plant Nutrition businesses.

First-quarter 2019 net income totaled $7.6 million, or $0.22 per diluted share, compared to $12.6 million, or $0.37 per diluted share, in the first quarter of 2018. While operating earnings of $33.2 million were 25 percent above prior-year results, a year-over-year increase in non-operating costs, primarily related to foreign exchange losses and increased interest expense, drove net income results lower than prior year. Adjusted EBITDA increased to $68.1 million, 12 percent above 2018 first-quarter results.

“We are very pleased with the performance of the Salt business thus far in 2019. Improved production at both of our North American salt mines as well as favorable logistics and commercial execution throughout the Salt business enabled us to capitalize on above average winter in North America and generate sales and earnings above our expectations. These positive results more than offset the softness experienced in our Plant Nutrition business,” said Dick Grant, Compass Minerals chairman of the Board and interim CEO. “Looking forward, we are encouraged by the outlook for the Salt business in North America, and while there are challenging market conditions facing the agriculture sector in North and South America, we believe we’re well-positioned for success as market conditions improve.”

View the full release here.