Compass Minerals, Overland Park, Kan., said on Feb. 8 that its Plant Nutrition segment posted fourth-quarter operating earnings of $9.5 million, up from the year-ago $3.3 million, on higher prices and lower volumes. Average prices were $660/st, up from $548/st, while volumes were off at 83,000 st from 143,000 st.
Total sales for the segment were $54.6 million, down from $78.2 million. EBITDA was up at $18.3 million from $12.3 million.
On a year-over-year basis, the company continues to expect sulfate of potash pricing strength in the fiscal 2022 first half to more than offset lower sales volumes, resulting in improved Plant Nutrition margins and profitability.
Compass anticipates first-half 2022 Plant Nutrition revenue of $85-$110 million and EBITDA of $25-$35 million. It expects full-year volumes of 280-320,000 st.
Compass-wide net earnings from continuing operations were $7.9 million ($0.23 per diluted share) on sales of $331.5 million, down from $14.7 million ($0.42 per share), up from $309.2 million. Net income, however, was $2.4 million ($0.07 per share), down from $28.1 million ($0.81 per share). Adjusted EBITDA was $67 million, down from $87.7 million.
Full-year net income was $14.3 million on revenue of $1.17 billion.
The company has lowered its fiscal 2022 outlook for adjusted EBITDA to $200-$235 million from $220-$250 million, largely due to trends in its Salt segment. Compass shares dropped as much as 10 percent on Feb. 9, the most since Nov. 16, after cutting its guidance, according to Bloomberg.
“We expect inflationary pressures and higher logistical costs to dampen our underlying earnings potential over the course of the fiscal year,” said Kevin S. Crutchfield, President and CEO. “In response, we are focused on offsetting these costs through continued pricing actions in our Plant Nutrition and consumer and industrial businesses, as well as throughout the upcoming highway salt bid season. Concurrently, as we advance our growth strategy into attractive, adjacent markets – lithium and next-generation fire retardants – I am confident these actions should result in attractive returns on capital, driving long-term value for shareholders.”
Fourth-quarter Salt operating earnings were $39.4 million on sales of $273.9 million, down from the year-ago $44.5 million and $228.5 million, respectively. EBITDA was off at $55.6 million from $61.9 million. Total salt sales were up at 3.44 million st from 2.78 million st, however, average prices were down at $79.63/st from $82.10/st.
Salt segment first-half revenues are seen as $590-$690 million, with EBITDA guidance dropped to $120-$160 million. Full-year Salt volumes are put at 11.8-12.8 million st.