Compass Minerals (NYSE:CMP) said Monday that March quarter winter weather activity was above average in its North American-served market, resulting in a 4.3% Y/Y increase in highway deicing salt products sold to ~4.8M tons during FQ2, although the full winter season ending in March was relatively average.
The company said Q2 sales of all salt products totaled ~5.3M tons, compared to 5M tons in the year-earlier quarter.
Eleven representative cities in Compass' primary North American highway deicing service area had a total of 114 snow events during Q2, or ~10% above the 10-year average and up 14% Y/Y.
"As we enter the upcoming bid season, we remain focused on recapturing the significant inflationary costs that we have experienced and restoring the profitability of our Salt business," the company said.
J.P. Morgan cited weakness in Compass' salt business after the winter season got off to a slow start in downgrading shares to Underperform earlier this year.