Overland Park, Kan.-Potassium sulfate prices helped Compass Minerals achieve a first-quarter earnings record for its specialty fertilizer segment, offsetting a 70 percent drop in fertilizer sales volumes during the first quarter ending March 31, 2009. Fertilizer operating earnings were $26.8 million on sales of $38.2 million (37,000 st volumes), versus the year-ago $17.1 million and $47.7 million (123,000 st volumes). The first quarter average sales price was $1,020/st, versus the year-ago $388/st. “We believe many of our customers will continue to draw down their existing inventories and delay or forgo sulfate of potash purchases until sentiment improves in the global agriculture industry,” said Dr. Angelo Brisimitzakis, Compass Minerals president and CEO. “However, the long-term fundamentals of the sulfate of potash business remain compelling.” He said growers will be called upon to produce more and more nutritious fruit and vegetables and will need SOP to improve productivity. He said SOP prices should continue to be well above year-ago levels, and that he expects the second half to be stronger than the first half. While a milder-than-normal winter impacted salt sales, the unit also posted higher operating earnings. Compass-wide net earnings were $61.6 million ($1.85 per diluted share) on sales of $309.1 million, versus the year-ago $49.1 million ($1.48 per share) and $380.0 million, respectively.
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