Overland Park, Kan.-While other fertilizer companies are reporting a drop in earnings, Compass Minerals last week reported a record second quarter for its specialty fertilizer business with a 15 percent increase in earnings for the unit. Operating earnings were $25 million versus the year-ago $21.7 million. However, sales were off 29 percent, to $38.4 million from $53.9 million, and volumes were off 63 percent, to 41,000 st from 111,000 st. The average sales price was up 95 percent, to $944/st from $485/st. “Though we expect sulfate of potash sales to remain below normal levels through 2009 as growers continue to conserve cash, we believe that demand will progressively strengthen through the second half of 2009 and approach historical norms in 2010,” said Dr. Angelo Brisimitzakis, Compass president and CEO. He also expects the unit to remain solidly profitable despite recent price fluctuations in the broader potash market due to the company’s cost structure, which includes solar evaporation production and a favorable supply agreement. Six-month operating earnings were $51.8 million on sales of $76.6 million (78,000 st), versus the year-ago $38.8 million and $101.6 million (234,000 st). The average sales price was $980/st, up from $434/st. Compass’s salt business also had a record quarter. Overall, company earnings were $14.1 million ($.42 per diluted share) on sales of $159.5 million, versus the year-ago $1.6 million ($.05 per share) and $162 million, respectively. Net earnings excluding special items were $17.1 million versus the year-ago $4.7 million. Six-month net earnings were $75.7 million ($2.27 per share) and $468.6 million, versus the year-ago $50.7 million ($1.53 per share) and $542 million, respectively. Net earnings excluding special items were $78.7 million versus the year-ago $53.8 million.
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