Compass Minerals, a leading provider of salt products, has projected an increase in salt sales volume of up to 5% in fiscal year 2024, assuming an average winter weather scenario. The company anticipates total salt sales of 10 million tons in a mild winter, while a strong winter could result in sales reaching 13.2 million tons.
Challenges in Forecasting Salt Sales:
Compass Minerals acknowledges the difficulty in forecasting deicing salt sales volumes due to the unpredictable nature of winter weather and customer response to weather events. Despite these uncertainties, demand for deicing salt remains stable over time.
Bidding Process for North American Highway Deicing:
For the upcoming North American winter season, Compass Minerals expects the average contract price to be approximately 3% higher than the previous year's bid season. However, total committed bid volumes are anticipated to decrease by around 5% compared to the prior year. Despite this decrease, the company still predicts a 3% to 5% increase in total salt sales volumes for the year.
Sales Distribution and Outlook:
Approximately 75% of Compass Minerals' highway deicing sales are expected to occur in the first half of the fiscal year. This sales distribution pattern aligns with historical trends.