Compass Minerals, Overland Park, Kan., reported second-quarter net earnings of $1.7 million ($0.04 per diluted common share) on sales of $256.1 million, compared to a year-ago loss of $11.8 million ($0.36 per share) and sales of $245.2 million, respectively. Adjusted EBITDA was up at $62.3 million from the year-ago $43.2 million.
Operating earnings were up for all three segments – Plant Nutrition North America, Plant Nutrition South America and Salt – with all three reporting increased volumes and lower prices. North American fertilizer sales volumes were 89,000 st, up from 74,000 st, while average sales prices were off at $618/st from $649/st. The average sulfate of potash price was $575/st, down from $598/st.
“Our strong results this quarter, achieved while facing the challenges of the COVID-19 pandemic, demonstrate the essential nature of our products, the resiliency of the core markets we serve, and the deep commitment of our employees to safely serve our customers’ needs and execute on our strategic initiatives,” said Kevin S. Crutchfield, Compass Minerals President and CEO.
“While we acknowledge the uncertainties that lie ahead given the ongoing pandemic, we are maintaining a sharp focus on those things we can control – operating safely and efficiently and executing on our enterprise-wide optimization efforts – in order to deliver value for our shareholders, customers and communities,” he added.
Six-month net earnings were $29.3 million ($0.85 per share) on sales of $670 million, compared to a year-ago loss of $4.2 million ($0.14 per share) on sales of $648.9 million. Adjusted EBITDA was $141.9 million versus the year-ago $112.4 million.
Compass expects second-half Plant Nutrition North America revenue and EBITDA to be similar to year-ago levels. It expects a modest year-over-year decline in second-half sales volumes, although an increase in micronutrient demand compared to the year-ago period is expected to drive an improvement in average selling prices.
Plant Nutrition South America results for the second-half are expected to be lower due to a weaker Brazilian Real versus the year-ago period.
Salt revenue and EBITDA are expected to be similar to year-ago levels, with an increase in sales and lower production costs projected to offset a decline in deicing prices.
| Plant Nutrition North America | 2Q-20 | 2Q-19 | YTD-20 | YTD-19 |
| Sales ($000) | 55.1 | 48.1 | 115.7 | 85.3 |
| Operating Earnings ($/M) | 5.1 | 4.6 | 10.3 | 3 |
| EBITDA ($/M) | 15.3 | 15.5 | 31 | 25.5 |
| Sales Volumes (000 st) | 89 | 74 | 185 | 131 |
| Avg Price per ton ($/st) | 618 | 649 | 625 | 652 |
| Avg SOP Price ($/st) | 575 | 598 | — | — |
| Plant Nutrition South America | 2Q-20 | 2Q-19 | YTD-20 | YTD-19 |
| Sales ($000) | 76.9 | 82.1 | 139.7 | 139.8 |
| Operating Earnings ($/M) | 8.9 | 1.7 | 9.2 | (0.9) |
| EBITDA ($/M) | 13.5 | 7.2 | 18.7 | 10.1 |
| Sales Volumes (000 st) | ||||
| Ag | 127 | 109 | 195 | 161 |
| Chemical | 85 | 80 | 175 | 162 |
| Total | 212 | 189 | 370 | 323 |
| Avg Price per ton ($/st) | ||||
| Ag | 483 | 556 | 524 | 596 |
| Chemical | 184 | 266 | 214 | 270 |
| Average | 363 | 433 | 377 | 432 |
| Salt | 2Q-20 | 2Q-19 | YTD-20 | YTD-19 |
| Sales ($000) | 121.8 | 112.6 | 409.6 | 419 |
| Operating Earnings $/M | 29.7 | 14.6 | 86.6 | 66.9 |
| EBITDA ($/M) | 46.9 | 29.4 | 118.4 | 97 |
| Sales Volumes (000 st) | 1,421 | 1,303 | 4,994 | 5,397 |
| Avg Price per ton ($/st) | 85.77 | 86.41 | 82.02 | 77.63 |
| Outlook | ||
| Plant Nutrition NA | Second-Half 20 | Full-Year 20 |
| Volume | 340,000-365,000 st | |
| Revenue | $110-$130 M | |
| EBITDA | $37-$45 M | |
| Plant Nutrition SA | Second-Half 20 | Full-Year 20 |
| Volume | 800,000-900,000 st | |
| Revenue | $200-$230 M | |
| EBITDA | $40-$50 M | |
| Salt | Second-Half 20 | Full-Year 20 |
| Volume | 10.7-11.1 million st | |
| Revenue | $450-$490 M | |
| EBITDA | $125-$145 M |