Compass Minerals Reports Fiscal 2022 Third-Quarter ResultsHighway deicing salt prices going up
Bid Season
Approximately 75% of the company's North American highway deicing bidding process for the 2022-2023 winter season has been completed. Based on season-to-date bidding activity, the company expects its average contract price for the upcoming winter season to rise by approximately 14%. As a result of its prioritization of a value-over-volume strategic focus, the company expects an approximate 13% decrease in total committed bid volumes compared to the prior season, depending on how the balance of this bidding season transpires.
Salt Segment Summary
Salt segment fiscal 2022 third-quarter revenue totaled $156.2 million, up 10% year over year, reflecting an 8% increase in average price and a 2% increase in sales volumes. The increase in Salt segment average price reflected 7% higher highway deicing pricing due to product and regional mix and 9% higher C&I pricing driven by broad-based price increases across most C&I product categories, primarily in response to the high-inflation environment.
Salt segment operating earnings in the fiscal 2022 third quarter declined $6.8 million to $12.4 million year over year, and EBITDA declined $9.1 million to $27.7 million over the same period, primarily due to higher production and distribution costs. Salt segment operating margin was 8% in the fiscal 2022 third quarter, down from 13% in the prior year, and EBITDA margin decreased to 18% from 26% over the same period, also primarily due to higher production and distribution costs.