Compass Minerals Earnings: Dividend Scrapped as Management Focuses on Debt Reduction

Compass Minerals' fiscal second-quarter results reflected the mild winter conditions. Salt revenue and adjusted EBITDA were down 14% and 7%, respectively, versus the prior year as a 21% volume decline and increased unit production costs were partially offset by higher average prices. In response to the mild winter weather and excess inventory, Compass temporarily shut down production at the Goderich mine. Management is also focused on cost reduction, both operating expenses and capital expenditures, as a way to improve free cash flow generation and reduce debt.