Compass Minerals reports 2015 results

“A combination of limited snow events and warm weather significantly reduced fourth quarter demand for our deicing products. We also experienced further deterioration in sales volumes of our specialty sulfate of potash,” said Fran Malecha, Compass Minerals’ president and CEO. “Even with the weakness in the fourth quarter, our full-year adjusted earnings were only slightly below last year’s, which speaks to the execution of our strategies to improve both businesses. As we enter 2016, we believe market conditions will likely be challenging, and we are taking the necessary steps to align production with current demand and create a leaner organization for long-term success.”

Net income in the fourth quarter totaled $58.4 million, or $1.72 per diluted share, compared to $80.5 million, or $2.38 per diluted share, in 2014.

For the full year, net income was $159.2 million, or $4.69 per diluted share, compared to $217.9 million in 2014. The prior year result includes an after-tax benefit of $60.6 million received in the third quarter from an insurance settlement related to the 2011 tornado that struck the company’s facilities in Goderich, Ontario, as well as costs associated with early debt redemption in the second quarter of 2014. Excluding special items, 2014 net income was $162.4 million, or $4.79 per diluted share.

Fourth-quarter total sales were $289.3 million, which was a 33 percent decline from prior-year results. For the full year, total revenue was 14 percent lower compared to 2014 results, as lower sales volumes in both segments were offset partially by higher average selling prices.

Lower volumes in both businesses along with lower average selling prices for salt drove a $35.7 million year-over-year reduction in fourth-quarter operating earnings. For the full year, operating earnings decreased $6.3 million from adjusted 2014 operating earnings.