Compass Minerals Slips To Loss In Q2 - Update

(RTTNews) - Compass Minerals International Inc. (CMP) Monday reported loss for the second quarter compared to a profit last year, citing mainly costs related to early debt redemption and an increase in expected full-year tax rate. Sales increased from last year, helped by demand for premium plant nutrition products, despite seasonal weakness in salt segment.

Looking ahead, the company expects margin expansion and increased earnings in the second half of the year, benefited by attractive market conditions for both salt business and its expanded plant nutrition business.

For the quarter, the group posted a net loss of $0.7 million or $0.02 per share, compared with a profit of $10.6 million or $0.32 per share last year. Excluding the debt redemption costs, earnings were $4.4 million or $0.13 per share for the recent quarter.

On average, nine analysts polled by Thomson Reuters expected the company to report profit per share of $0.27 for the quarter. Analysts' estimates typically exclude special items.

Sales for the quarter rose to $186.6 million from $173.8 million a year ago, driven by a 49 percent increase in sales from recently expanded and renamed plant nutrition segment. Analysts projected revenue of $194.13 million.

"Strength in demand for our premium plant nutrition products continued throughout the second quarter and pushed Compass Minerals' total revenues higher, despite seasonal weakness in our salt segment," said Fran Malecha, president and CEO of the company.

Plant nutrition segment sales increased to $65.6 million from $44.1 million last year. Salt segment sales were down 7 percent from the previous year.

Shipping and handling cost advanced to $44.8 million from $40.3 million a year ago. Product cost was $104.3 million, up from $91.6 million in the preceding year.

Looking ahead, the company forecasts total salt sales volumes for the second half of 2014 to be in the range of 6.0 to 6.5 million tons, and average selling price will increase about 12 percent from 2013 results.

CMP closed Friday's trading at $94.62.