Compass Minerals, Overland Park, Kan., reported a 42 percent drop in net earnings for the fourth-quarter ending Dec. 31, 2020, to $32.3 million ($0.94 per diluted share) on sales of $421.1 million, down from the year-ago $56.1 million ($1.63 per share) and $500.3 million, respectively.
However, full-year earnings were off only 5 percent, to $59.5 million ($1.72 per share) on sales of $1.37 billion from 2019’s $62.5 million ($1.81 per share) and $1.49 billion, respectively.
Compass pointed to higher costs associated with its Plant Nutrition North America segment and revenue and expense impacts associated with COVID-19. In addition, it cited the continued devaluation of the Brazilian real with respect to its South American business and weak winter weather with respect to Salt.
The North American fertilizer segment saw a 47 percent drop in fourth-quarter operating earnings to $7.9 million on sales of $88.7 million, down from the year-ago $14.8 million and $76.5 million, respectively. However, fertilizer sales volumes were up 23 percent to 144,000 st from the year-ago 117,000 st, though prices were off 6 percent, with the average selling price at $617/st, down from $655/st.
Full-year fertilizer volumes were up 21 percent, to 383,000 st from 2019’s 317,000 st. Average price dropped to $626/st from $651/st. The company reported the average sulfate of potash (SOP) price as $566/st.
Full-year North American fertilizer operating earnings were $12.1 million on sales of $239.6 million, down from $22.5 million and $206.2 million, respectively.
Going forward, Compass expects first-half North American fertilizer revenue of $90-$110 million, with EBITDA of $20-$30 million. Full-year volume guidance is 350-380,000 st.
| Plant Nutrients North America | 4Q-20 | 4Q-19 | 2020 | 2019 |
| Sales ($/M) | 88.7 | 76.5 | 239.6 | 206.2 |
| Operating Earnings ($/M) | 7.9 | 14.8 | 12.1 | 22.5 |
| EBITDA ($/M) | 17.6 | 25.9 | 52.5 | 67.1 |
| Sales Volumes (000 st) | 144 | 117 | 383 | 317 |
| Avg Sales Price ($/st) | 617 | 655 | 626 | 651 |
| Plant Nutrients South America | 4Q-20 | 4Q-19 | 2020 | 2019 |
| Sales ($/M) | 101.4 | 110.3 | 344.1 | 385.1 |
| Operating Earnings ($/M) | 16.1 | 18.5 | 40.3 | 40.0 |
| EBITDA ($/M) | 20.7 | 24.2 | 59.1 | 63.1 |
| Ag Sales Volumes (000 st) | 142 | 125 | 485 | 452 |
| Chem Sales Volumes (000 st) | 82 | 92 | 339 | 338 |
| Total Sales Volumes (000 st) | 224 | 217 | 824 | 790 |
| Avg Ag Sales Prices ($/st) | 594 | 708 | 562 | 655 |
| Avg Chem Prices ($/st) | 208 | 243 | 212 | 264 |
| Avg Sales Price ($/st) | 453 | 510 | 418 | 488 |