05/08/2024 | News release | Distributed by Public on 05/08/2024 08:19
Compass Minerals announced certain actions it is undertaking to improve cash generation and accelerate debt reduction, including the board of directors determining not to declare dividends for the foreseeable future.
"Our results this quarter as well as our full-year outlook were directly and meaningfully impacted by one of the mildest winters experienced in over 25 years and by unexpected obstacles to the advancement of our fire-retardant business," said Edward C. Dowling, Jr., president and CEO. "Accordingly, we are announcing a series of new and ongoing actions to address these challenges, including the indefinite suspension of dividend payments, adoption of operational changes to enhance flexibility and right size our highway deicing inventory and production profile, and advancement of SG&A cost saving measures including a recent reduction in our corporate workforce. These actions are in line with our previously announced focus on improving cash flow generation and returns on capital in the Salt and Plant Nutrition businesses, and accelerating debt reduction. While difficult decisions to make, each action was carefully considered and determined to be the best path forward to unlock the intrinsic value of our company amid a difficult landscape. I believe that we are positioning the company to realize the significant potential inherent in the unique assets of our core business."
Other highlights reported by the company include:
The full release and Fiscal 2024 Second-Quarter Business Update is available here.