Overland Park, Kan.-Compass Minerals International reported a 28 percent increase in its sulfate of potash sales for the second quarter ending June 30, 2007, and a 21 percent increase in sales volumes. SOP operating earnings were up as well at $8.9 million on sales of $35.5 million (115,000 st at an average price of $307.62/st), versus the year-ago $8.3 million and $27.7 million (95,000 st @ $292.61/st). Year-ago results included sales tons that were lost due to unfavorable weather in California. Six-month earnings were $16.6 million on sales of $67.6 million (222,000 st @ $304.23s/t), versus the year-ago $16.2 million and $55.4 million (192,000 st @ $288.95/st), respectively. Prices were up 5 percent, reflecting price increases that took effect March 1 and June 1. This more than offset an increase in production costs caused by higher potassium chloride input costs, yielding a 7 percent year-over-year improvement in SOP operating earnings. The company adds purchased potash to its harvest so as to extend SOP production. Compass-wide, the company had a net loss of $3.2 million ($.10 per diluted share) on sales of $127.5 million, versus the year-ago loss of $2.1 million ($.07 per share) on sales of $108.1 million. The loss was primarily driven by a decrease in a tax benefit and changes in other income, though a loss is normal in the second quarter as the company builds inventory for its salt business. For the first six months, Compass had net earnings of $22.9 million ($.70 per share) on sales of $391.7 million, versus the year-ago $26.5 million ($.82 per share) and $326.0 million.
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