Compass Minerals Surprises With Big Loss
The company's flagship salt segment faced both weather-related challenges and the near-term impacts of its decision to slim its inventories.
Compass Minerals International (NYSE:CMP), a leader in salt and specialty plant nutrition production, delivered a mixed report for its fiscal 2025 first quarter on Feb. 10. The company's non-GAAP loss of $0.55 per share contrasted with the earnings per share (EPS) of $0.13 anticipated by analysts. However, on the revenue front, Compass Minerals posted $307.2 million, surpassing the $302 million estimate.
Source: Analysts' estimates provided by FactSet.
Compass Minerals International specializes in the production of essential minerals, including its flagship salt and specialty plant nutrition products. The company's operations are focused primarily on the large salt mines in North America and the United Kingdom. The majority of its revenues derive from the sale of deicing salt for roads, and mild winter weather in North America for a second consecutive year has led to weaker-than-expected demand. The company has also been working to reduce inventory levels. Management pointed to this as a "transient" impact that increased production costs.
