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Compass Minerals International (CMP)

Participants
Theresa Womble Director of IR
Kevin Crutchfield CEO
Jamie Standen CFO
Joel Jackson BMO Capital Markets
Christopher Parkinson Credit Suisse
Vincent Anderson Stifel
Mark Connelly Stephens Inc.
Tom Glinski Goldman Sachs
Jeff Zekauskas JPMorgan
Chris Shaw Monness, Crespi
David Begleiter Deutsche Bank
Seth Goldstein Morningstar
Call transcript
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Operator

Good day and welcome to the Compass Minerals Third Quarter Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the conference over to Theresa Womble, Director of Investor Relations. Please go ahead.

Theresa Womble

Thank you. Kevin Minerals' our third CEO, will Jamie our Compass review quarter morning, Crutchfield CFO, and Standen This results.

As the well rest for of XXXX. as our outlook

During the question-and-answer period.

Griffith, also Chief available will Brad We Commercial have Officer. our

call the Kevin. turn I over Before to

results date Let on forward-looking within me as the Securities Reform Company's the contain These XXXX. today's Private statements Act to the expectations remind could of XX-K X, today's actual XXXX full November cause and of the risks. to statements may that that Litigation you involve discussion and meaning these a are Form materially. of based and the differ company's risks uncertainties for disclosure recent refer of Please company's most XX-Q

events undertakes to The no or statements update obligation made forward-looking reflect company any developments. future today to

disclosures, include we provide financial business remarks to important of may conditions. and full operating are Our a also feel understanding our which non-GAAP

reconciliation find Relations compass the can our in measures these or minerals.com. available You the release are both any earnings website at of which of our in presentation, in earnings of of section Investor

Now over to call I'll Kevin. turn the

Kevin Crutchfield

everyone. morning, Good

brief moving of a Compass I'll management with and communities a Minerals and our senior path, Then defined of discuss quarter build review begin the the highlights some of have team customers, employees, I forward our today to third for the results. for better shareholders.

when suppression fatal Before inside a I mid-August working do the the that panel. Clements, systems occurred incident moment a electrical our that, electrical take at Blanche the live address to while mine I'd in Shawn like contractor to cable Cote Mine fire a contacted at

in that unacceptable. Coming tragedies in and learn from actions it's from to long our I incidents claimed take are Mr. from imperative mining. these to as happening career his again. like condolences again the one top priority life to and order prevent sincere once such to We necessary believe the our family. we Clements time of The safety is our workforce them also which to would extend a

As the been and with learnings enterprise. manner impressed the minimize accident in responded Cote sharing the that reviewing which in circumstances to I've the our has risks across order such, resulted future those Blanche team in

mine the X was weeks Operationally, offline beginning mid-August. in approximately

the team expected but the result to production incident, recoup loss investigation is of year-ends. before Cote Blanche of the our a As the

quarter's they Turning team to I'll leadership me disappointing while our X% business. this say consolidated to Salt increased revenue results. year-on-year financial to just upfront and completely in are our improvements to

many has We uncertainty a Our appetite farmers' operating for Brazil specialty earnings nutrients we in sell. reduced EBITDA quarter and of challenging agriculture global had declined. the markets where in

in sales modest While North in SOP gains America we out eked our volumes.

XXXX. bright deicing of for average however were selling preseason prices, our strong costs deicing quarter and Salt compared growth. Consumer our products & to earnings business America volumes than Total prices highway the higher demand limited year-over-year third with stronger North in lifted deicing spot sales of expected stocking Industrial highway raise The And salt

earnings American XX% from total additional season. deck. season our those to volumes, the reported deicing are described our Slide X results last brings over increased We're which results what XXXX-XXXX to reporting on which more We highway North and speak final our I'll the winter we bid quarter, X% of also shortly. increased bid

announced plus report increase also the that I'm selling maintaining pleased average still team X% in to our August. additional this We Salt while achieve price.

business. the the achieved seasons improvement on speaking as commercially total X a quarter, though over plus for last of Salt price things track we've last Just stated we remain bid XX%,

faced a in perspective, From quarter. production some the challenges we

what production Goderich we compared addition difficult second to rates which slowed the the work In in downtime some to Blanche Cote through achieved had quarter. at to our we geology

also with by success, still this challenges, those XX% our I the taken of long-term approach year critical X deliberate focus Goderich, to first is the dispute we've more must outstanding Goderich to results. the our on bearing focus and at our believe efforts through placed We've corrective a labor good the strong the and employees we months mine be fruit. partnership is settling to to XXXX to efficiently relations a for production actions that improved with The compared improve Even to labor is are us. news

production an We had exceeding of rates. our targeted even excellent month in October, production

mine In is the together. was current everything Goderich comes demonstrates what fact, within record production fleet month capable a it the and when this

Given to outstanding for month. congratulate there like that, an the I'd team

systems. taking geometry of the current ahead definitive mine both but this our of to and radar we're in-seam, on same We're Because along drilling ground-penetrating was a one October, can accommodate last and to the we That areas a success. mining using horizontal XX% production existing period. mining also a result the at mine build of not make, end with the said, year's steps to and month year-to-date of haulage their future efforts, year explore strong At reconfiguring does continuous better report that. for panels

is at This mine new a work Goderich. part implementing initial of long-term plan stages of

We is strokes provided continuous here to mining areas the operational of to flexibility illustrative provide previously improving few the mine also X. productive we the the representation designed the mining maintenance broad-brush slide the in our of how the next while related on are to districts. mined over plan is Some see should years. and This What reduce safety evolve maximize you and massive capability plan throughout abandoned of costs systems. various

mine. we in and to to key always make solve respond easier is deposit it issues consistency flexibility quality and emerge This can will any that

we're beginning is XX the angle we're past experience rooms we at angles call this which more to in Goderich. better project, Chevron have at place flexible and or the will which with conveyance of pattern with pillars believe a oriented we through work and advances, shape, here a degree here much right see XX our to graphics you panel mine can new of instead modifying While institute the multi-year systems

distance will purpose roads built shortening for have where ways out the travel and the Another mine. the will new leading reducing key road mining of industry. entry the and be from feature time permanent to bypass area we and Significantly

roadways will these safer for maintain to and our Importantly, easier miners. be

we long-term we'll further and develop our plan, regarding details timing mine spending. related share As more

expect total keep $XX to CapEx in to be we million and Importantly, work to our the this able $XXX million complete rate.

significant Now has conditions our planted business business conditions. to steady. turning in to Plant due due But our we held America, our to to business, face market poor SOP challenging fairly earlier year. acres continue Nutrition North micronutrient In this the weather reduction lagged has

skip farmers of has some In trade nutrient on South clarity delayed or resulting altogether uncertainty in to application China-U.S. even prolonged the in cases. lack decisions America, by

of Asian smaller the price flu weaker these you chart In swine slide can growers Brazil which mainly from pressured X addition, China, have pressures demand is impacted channels. economics which has business indicative through see soybean on our serve distribution to sales, grower the the business for

business our increased the grow XXXX results to business and portion direct remain this Our strong actually fourth versus in we expect the quarter. modestly to of

the Jamie few to setting I'd call spend minutes a the to Minerals over Before like up discussing future. for to turning Compass our approach

and and of achieving have Minerals immense been there potential made this less execution on to level from company, me these than growth the us organic for Compass that prevented improvement. investments stellar has operational appropriate It's returns is Significant within in clear investments.

will months, the twofold. Our focused be over XX next

to made. investments will on deliver First, work and machine to already we've of execution an we push promise the the become

Second, we'll X. be. what as to our our on able will our be better long-term balance will and the outlined results slide sheet, process improve direction define following We be

We our of review conducting First, details the to us. looking a and all is generating next top pertinent to operations it. value optimization plan bottom we're for we'll of this call the on enterprise-wide executing every in opportunity available began announce business

result this financial plan in delivering performance as begin to XXXX. of expect a We improved

As opportunities materialize, we these begin growth want of look the like. business future improvements Minerals discerning and we'll what the to Compass organic

to transparent our expect that Throughout thorough in as on have be possible a will today as with our an process, Consequently, investors great in later I'll this we effort making progress XXXX. strategic to on X. updates Phase we're externally discussion provide we progress share would

focusing like of to identified MRI key that plan our initiatives improvements will the the bottom-up an broader process of foster review, and think be organization a involving the sorts streams generate in efforts. employing throughout completed value We've will within our everyone organizational several where the we organization. it have We're

Very We year. and today. the expect far and early and their to announce to engagement we've have more like all I'd for so done this plan enthusiastic of work process the next about specifics of employees this bear thank already of the in with optimization energy hard brought to them our work impressed

the through Jamie of Now the Outlook, quarter rest the details year. financial of and will Jamie? walk the

Jamie Standen

Thanks Kevin and everyone. morning good

this for both results highway and volume segment with X% selling industrial primarily compared slide results, prior XXXX review more due higher on a segment from revenue Volumes quarter XXXX and the stocking start Salt I'll and on XX, which increased in grew businesses, to consumer our third third orders quarter. to prices. year are preseason growth X% the average deicing XX% of

to better into year. shipping improved driven sales chemical prices, River increased of caused combination to deicing the due from quarter on compared mix highway deicing a sales quarter by the The the by XX% prices also delays salt third pushed was some in highway X% which pricing had flooding. contract of We lower to and Mississippi prior second customers improvement a

sales prices mix. due to selling Consumer and declined product average industrial in year-over-year changes X%

So we a revenue had all, perspective. in all a from quarter solid

also stated, as was significant it less and We than EBITDA were Kevin what earnings growth generated year-over-year but targeting. operating we

pressured this are key that There factors quarter. salt growth several earnings

during $X mentioned production lower results production. Kevin by we First our slowed in quarter. the the million than our as some that tough of mine about at geology depressed quarter Goderich encountered pace expected This

should that time radar. lower encountered downtime will Mine by expected planning quarter Blanche production the in is avoid from help time is also powerful in resulted begun us second forward. at We've it the This The be than to about recently $X the earnings million. reduced good Cote that impurities using news a tool historically and going ground-penetrating been

up the that do production fourth quarter. in We to expect make

is this timing just a impact. So

resulted million. disputes total a a costs transition about executive some at to settle in of Finally, charge $X and proactive decision labor Goderich

quarter year-over-year compared million this to for not called even we season. in items XXXX related was like to out quarter, business rates outperformed strike to we these prior last due impact this couple last that mild very year lower for I'd winter results handily have note If UK Goderich also adjusting year. production following of our XX the would million the EBITDA Salt lower after a

we Obviously, already the better yielding very we mine on would benefits strong at efficiently focus, like as but Goderich in are corrective the more results have said placed production the in mine October. have results actions seen business to Kevin to achieve as the Salt in

its of are out has And our Mine at the overall. for segment or also signs above coming both Salt Blanche of performing outage these Cote been plan great

Turning compared to America the sales Plant in decline increase driven average revenue by by growth X% quarter in X% offset to slide the X% volumes selling XX, a partially third North Nutrition segment prices. delivered an XXXX

and also increased warehousing like Operating would were EBITDA prior costs. as earnings revenue favorable and to note versus the costs of a cost I to geographic higher in both sales quarter result lower less year logistics growth. and increased due production that mix

America quarter third South Nutrition broadly of XXXX. XX third-quarter results found we're Our strong the on down slide results versus Plant

Third quarter XXXX X% weakness. price on and declined revenue volume

trade agriculture Brazil, third sales impact on direct although sales this growers our saw lower to quarter were and in by our a served BXB ultimately larger have weaker to through we from smaller quarter planting, driven XXXX delayed grow X% channel. dropped in we revenue tend importantly primarily levels the by our farmer pressured which BXB uncertainty economics increase distributors, believe sales an to Agriculture

still a in solutions increase compared prices. sophisticated less a in enhancing are year Our sales offset grower on market. prior investing revenue our products for segment in agriculture to was by in ag, larger more Chemical XX% even decline this customers selling a yield favorable average flat XX%

solution. states to prior to we This on are previously discussed. water less and treatment to looking as year continues As compared many water higher volumes priced sell spend municipalities business products treatment of low

also in some decline resulted than by more year note saw lift drive in as important raw the together XX% price we inputs to growth expertise the earnings this also and margin lower production we was more invest modest agronomy the and material that to XX% compression unit due Unfortunately, forward. efforts these agriculture it's quarter operating business continue levels to going each to things higher to marketing decline sales force, our strong quarter. All year a in compared and prior in in EBITDA offset a

each slide at our on of expectations with fourth outlook XX for We quarter begin a discussing look segments. our

For the rest of the year.

quarter Given the compared to results fourth North growth bid of revenue highway American low deicing our last the year. salt expect strength of we teens

bulk X/X year. overall results chemical highway only lower business to remainder both our in shaped prior expect bid The producers is businesses, our deicing we of about those season business. Salt Remember UK of impact that sales versus sales our by our volumes and

chemical to customers sales have Our reduced. been

As on customers. we supply higher have constrained margin prioritized our deicing

pricing in our the volumes American Given improved and North increased improvements environment operating mines. at performance significant salt

quarter We unfolds to Where American mines. XX% between growth winter expect that continue planned at ultimately production year. we ability and determined our and EBITDA versus our XXXX fall hitting how be our of will fourth rates in by XX% North range weather prior

the quarter results In in year expect prior dealing with outlook likely into fourth we to plantings Nutrition our all fourth micronutrients Plant fourth North challenges challenged. to expect believe buying trade that are we combination by South into pushed we versus of remain year-end. but we've third the and lost quarter of expect don't uncertainty a the take recover quarter we the and reduced full sales of quarter. earnings America, delayed In for are volume America SOP each demand sales Both year a segments decisions some fact and to strong growth account as

is EBITDA year prior segment's expected shift margin to also improve compared results. the The to

to to headwind quarter that full sell prior expect we this currency value expect to fourth we when X% of a As important year. It's our year translation segment, compared also the more XX% higher do to in products. in note

consolidated outlook year on is full slide XX. provided Our

outlook and As in weaker our our take results release, into Plant to account press the we've EBITDA noted Nutrition businesses. full-year for the reduced outlook

touch free cash Before on beginning the question leverage and our answer expectations. and to flow session. like I'd

this million our cash Given very XXXX. of outlook, flow between expect a $XX large year, in million we lower expect EBITDA but now generate and to step-up $XX free

an to times. year expect the debt ratio leverage in also We net with X.X about adjusted of

the these to benefits quite the from estimates the to come that note in believe optimization the identified. of of while we that deploying process all important plan, internal ready aren't it's of will opportunities Lastly, value we've exclude enterprise we wide we discuss are the

the basics mining operating strengthened capability that confident to success in day months coming day as new our are quarters. over out We and recent plan our structure and serve the the foundation and will execute executing optimization

I'll Operator? the the operator to that, begin With ask session. now Q&A

Operator

from go now ahead. will We Instructions] [Operator question with Jackson BMO take Please Capital our Markets. first Joel

Joel Jackson

a wasn't and the a I years now is back this sorter are talk maybe break want and particle issue. Can about, is or or straight miner distribution geology related this discuss before Thanks. blast managing just this the with a of or of is how to this, that part the geologic some we the you versus drill to geology fix to new you've fines the continuous issues supposed optical at ago the been facing going or two to you Goderich problems distribution. over some saw year maybe of lot

Kevin Crutchfield

Yes, Joe. good question, that's a

separate parse of we quarter just have Salt the those rock an fine. obviously particles was launch, you those particles are of a anomaly. geologic So and optical machines to more sorters in mixture a are small two, operating the hit the third the designed What actually from

mine mining breadth of It's because a, extent really we've the itself. and conditions, the difficulty this call sorters level in difficult, the materials penetrating anhydride mineral was materials those machinery high understand are on radar venture non-salt to why not sorters very the that a engaged a too because ground just when the and we to on hard of where don't an want It notwithstanding work we and intrusion function profitable optical the optical don't exist. is the very of for is that's machines is formation reject you're

we're those to up the working want want avoid technique manner we So handle plan, mine areas. this that weekend also far up kinds a just horizontal mine probably we're of as a that going deployed, so that we've the that in such start to through good better to got set long-term some to set define we've ground-penetrating because radar feature, drilling we towards this we

So that disappointing those tough in as like quarter what the the news think result units we process as which were the what press one release future, bad it in are the we and material. good in The as in defining in third as is areas determining that perspective. a from looks we will prepared can is I news performance look of our much in remarks the of than better had saw well avoid in the quarter, we which said the

Joel Jackson

fair Kevin, some months. this you because is does double-digit - wanted team through that I need acquire go and the meeting can intact, up you not CAGRs When acquisition now to company management you're types this it this, is, to this gut not here to the American it stay And feeling may have know, make business, is better process is - to look that certainly cut you been for America, you that? business gut at ago at and your you look what when on be years things and at - of on do in your South the is a some South it going several growth targets

Kevin Crutchfield

question. good Yes,

make stay focused we're one, our So potential job on looking at run full to the the to Joel, execution. its way it, company is and

lot inside and the the through be with internally that both can of company think I mean where a would that's better that execution, businesses that in there externally. past. realize degree we I get to believe when it's Salt better a company, of the kind execution think to begin strategic discussion I we've and we're to and we it our having we across running really more Board then some going had once Nutrition potential begin then of is the I results, Plant believe working say fair problems performance here discussion better up possible, and stood pent-up

don't front run I at want to all. So anything

I at to lot paint the the of work just and just exists think we're right that first from, what like. and potential. thinking its our does perspective the work on it's look we to about here where there, in a transformation get try think running very, let's potential first, that now from sharing internal encouraged but kind full early company XXXX We've knee-deep that got very be things company look continue do to of to forward into a potential the to again

is everybody on that So where board going. with we're

Operator

now our next Christopher [Operator with Instructions] We'll from Parkinson Suisse. take question go Please Credit ahead.

Christopher Parkinson

of kind you, the a corollary Kevin. you but of last question, Thank

you've quarters biggest and - like seems X salt at past But in truly surprises your ultimately ultimately versus confidence you a I that to to in Thank just mining everything turn your the just mean get been sense have a Now truly experience past we're issues, lot, still the around. want you. a your to does in what the your of enables - situation had few evaluating Goderich in experience your flux. it of I ability degree

Kevin Crutchfield

come very out. made ability the - are, of think come should side, to operating look to the Goderich. turn little us believe, Well, a very, high, changes degree I is I on natural we've our this in around will to say natural haven't more my I things it that is confidence with

we next need long the we as We of a for plan get be I've in before, but It's up illustrated here definitive think this XX a are didn't we're on this to term is where either. we slides set very steps won't overnight process, mine I it's get mine where development years. So continuum the the taking said to overnight.

already institution on because want some quarter-on-quarter for availability set more we these angles practices, and can so, we road I are understand to or aren't for XX-degree where on to with X X shut that I a don't demonstrating as geologic the performing utilization, of combination And a them plan the room-and-pillar there will mining in world-class asset through of think years and new truly do was setting of opposed up where off better focused at ground completely XX we system years world-class up world-class next - levels. these up the that's itself results coupled too, rooms costs, coupled ultimately better and manifest setting manifest the truly be all permanently while a mined you this to I that. have world-class we're on long-term it ways in itself think better where anomalies with control this long-term then create maintenance then then to these mine reserve focused We pressure here thing

world-class to in be So not is potential mine can team's get reiterate we've level the a only scratched long-term. will running But to confidence exceptionally in level get there. my doubt our we mind, where it Goderich just my of ability high. this There's that

Christopher Parkinson

the positioning benchmark head your investors It's are just efforts think to the growth profile? you. portfolio the for key this transportation recalibrate about about How this of and very on of us like be so XXXX in but term. we, we any are what to XXXX, to intermediate front portfolio just should logistics just the So want helpful thing give clearly could and action your an takes 'XX concept should we update as near without in you long-term. capabilities, isn't a the your the just confidence margin you just it the also Thank [indiscernible] seems into that lot this even there about and distribution, and puts thinking on scrap

Kevin Crutchfield

question? On the your Salt franchise is that

Christopher Parkinson

No.

Sorry - Brazilian business. the for for the

Jamie Standen

let Yes, that start with me maybe.

about good market long-term has it's marketplace, as all obviously, So in American businesses. swine our tough our trade a South that China competitive key profile position year, - a the African number uncertainty, business. The there of of flu, we feel leader demand, with factors. is are a of Fundamentally, the growth this very it

well. So we very, feel very, BXC as very our about business good

over and we growth that kind of the time well. about to in low-to-mid continue growth as area period of think earnings XX% teens longer potential line So the top

category, the in 'XX, Now, to frustrating, but flat down in business, a twofold, bought think in us when bit and global flow Brad there be I really BXC is to. sales some That's growth in want program lot a bit it's we we focus see we've ebb earnings’ force the may levels. enterprise-wide seen, XX% will of had through lot flat things. year. dealing We real through a We about a those flattish our it local then going the can add which little now it's a 'XX, to this demonstrated you color of achieve at had bought help about do opportunity potential sourcing, XXXX, And it's growth talk optimization a BXC? Brad, year and again efficiency, there currency. in is

Christopher Parkinson

sure. Jamie. look Jaime's internally hello. Christopher, business, And BXC. comments. direct-to-farm at When Yes, our building just we Thanks, codenamed on

seeing a over range XX%, year XX% of CAGAR We of three are terms that income. performance in operating

rate outlined expect And uncertainty, of year-to-date farmers and trade African where swine XX% given that stronger. were in still difficulties XXXX, we about business grow terms global piece Jamie I that barter we year-to-date, looking is to grow look even when the XXXX the at to behind it fever, think in

times in expected look [Abisolo] are terms we average just - competitive about So our through group the times two when over peer we at industry two of growth.

made investment that in very good about thesis we Brazil. we the feel So

Our half business Brazilian our revenues income. direct-to-farm accounts about of and for of over business our operating XX% year-to-date

we hand. And terms, is to hot certainly direct-to-farm feed poker in approach our we like the that want hand. feel I hot So suppose

bit by we we where of pressure topics felt kind that's side, environmental of little that BXB kind the of the earlier. a On spoke about exacerbated some the

having customers time. Our are a challenging

customers, from us. - when goods materials, finished less We and raw sell have feeling small customers have the buy pain they're them commercial who and we intermediates, they large

so portfolio I without expense. entire think to we incurring additional significant and able business. and as feed for we resources opportunity at look our a we're enterprise recalibrating at that sure hand optimization the That's it's our and hot portfolio And how look our in making

Operator

with ahead. from Stifel. Anderson next take We go will now Vincent our Please question

Vincent Anderson

go to back to wanted a just for I geology minute.

regards panel So plan Chevron's, really new how to you know then shot long the here, and each the and you make the are mining with out can new horizontal districts out long sample get ground-radar into along one far a and maybe I drilling away reliable is cut from with in and other Michigan, of any anything to geological the at ends book the you glean that's done reserve, there from long at work the of end is the grade can ore on ways but least consistency the the and been deposit? of it

Kevin Crutchfield

Hitting that's the would question at. looking that know of I question, point to part don't first. be your good last a worth the answer

tells radar, not the If nice what's at sure. that what of you enough coupled end data, you you penetrating day, you a ore your the what I'm you and look of if well-defined is horizontal body ground drilling sample looks in But core. can create image can very that like the with

to ground concern we lies what works us more it's enough out hits will we to hydride area areas, the going extent of it because that back, but the the plan future bounce to the create link technology anhydride in a areas radar the when confidence that parts the across these penetrating the in believe it have Actually, anomalous now, importantly understand where areas for very very lay good what's of right to mines. but image completely we

about is understanding is process that now and drive your we're mining chances resource eliminate we're - talking of that geologic to to but anomaly, technologies never you the having deploying mitigate the doing what is consequence, mine will a those that's the XXX% the right here. as this long-term of you just - what understanding ensure can plan resource XXX, like circumstances the that a in what can certainly looks Look, great it's by degree and

can very that. So high I level think of do that we a confidence

itself I And drilling - mile - about And then radars me, will debt, the drop on we're the mile. the a along we talking the laterals penetration excuse we horizontal a off this think way. penetrate and about

So the gives way mining. development that forklift down and at you and that can the go the start we're through lift you all

in be So it of terms resource. additive the really will very defining

Vincent Anderson

back how we of it the hangover pretty you bring to or Goderich Salt. was about I to the quickly XX inventories just cost gave, well half overages And XQ you. Jamie, continues first to Thank the XXXX the think this helpful. appreciate detailed improve? and for should very assuming XQ on to numbers That's contained in

Jamie Standen

yes. Well,

quarter, the a fourth through have the of So we're made will lot flush it at into we If we we were the quarter. that some did running. rates continue Salt

mentioned we rates. above running As targeted

planned over. have a expect Our carry significant we rates internal shouldn't to

Vincent Anderson

the was like U.S. one that's the any late I'm until in end if fairly in your the going more stockpiles did eastward book quarter, third of of to in, shipping sitting okay. start did look It towards see your bid really the on earnest didn't in some competitors season? pull eastern and sneak you French in high one more contract

Jamie Standen

No, you not was XX% of in complete. when were reported August. booked business our Remember a yeah, earnings recall, were we We bulk really. we -

of didn't So to book remaining a was a we particular would I see commercial lot you agree, think our Brad pull these?

Operator

go You from Connelly Stephens will our Please Inc. with question now take Mark next ahead.

Mark Connelly

feels hold you this talk bit a up holding MOP recover lousy that have summer? SOP how the better. the, about even it economic doesn't are can prices and you up sloppy and been like is SOP little confident it if MOP Could trade-offs from

Brad Griffith

feel Mark, this MOP. I say like characterize how we Griffith, market. I stability good about the pricing would the you Brad is and very of

weather States the carryover number a precipitation that respect of inventory what the event. channel. significant amount is on seen were XXX-year we've think the of in with United There through was unprecedented - based went I to there spring a

we're also And Western demand tree Northwest. seeing the so, U.S. the crops nuts in what we're now Pacific Southeast. chloride-sensitive is in But good the berries from in and seeing now our

areas those very see good online. it's to coming So

is extremely it's an been from crop typically from weeks probably and about is still in is see what harvest strong, EU four almond average The delayed to two as to it anywhere stability. year pertains we still an The resilient strong. India exports

given footing. So demand - as as a that given export I pricing those that really crops think for the SOP just points internal well its data good

We've that, the will Now dynamically to having continue price said we Mark. past, in market. the to said

the be that to intend that, case. North a of market to have We significant share we the and American ensure certainly continues

I able a to we've good our attractive also very far. had harvest, Ogden on to able - get think in feel We've our of cost thus use about good been asset. our been to margins we've that we plans production

Mark Connelly

question for one Just Jamie. maybe

CapEx think million know million keep I pieces $XXX But spending these you heavy investors range. that hear equipment. more in to $XX they on to can you're want your that of

remind new spend, So, that's CapEx allowing can even you these proceed us, as through in overall of the stay and you that range, the takes in initiatives? big to some you puts

Jamie Standen

Yes.

million amount maintenance million spend, we for to business. So the we're range $XX the is MOP believe in focused this on of $XX finding perfect which

the is So yet. flexibility to on even if there with out in to that this million of adjustments think plan, some going of outlined as bulkiness million, longer-term plan, mine go long-term future $XXX running to the the plenty through be absorb mine the which to the MOP we we're side we may make $XX in we there come haven't some

that. level in believe of exactly on and of targeted sight there. line don't it that range timing any have million the of million, MOB $XX We that to can fit we because $XXX we of But specific

Operator

now our [Operator will Sachs. go next take ahead. Goldman question from Instructions] Bob I with Please Koort

Tom Glinski

This Bob. is for Tom on Glinski

first volume just there and larger and XQ ton touching any cost weaker on per costs through Could in XX% at it So factors unit just are transportation Salt quarter-over-quarter. back you Thank the walk drivers were so was play. around down you. just there mainly

Kevin Crutchfield

Salt? in sorry. you Are I'm

Tom Glinski

Yeah…

Kevin Crutchfield

Yes.

Okay. Yes.

So not showing down XX%.

Tom Glinski

cost you logistics segment? about year-over-year? just in talking talking or the Are you're Salt sequentially So about

Jamie Standen

decline. what see see always we we always a sequentially so Sequentially,

I mix see better in third be really year-over-year quarter at we're tick costs think we do, what quarter deicing would of shipping lower up second salt see as in in look versus the pre-fill activity the to the quarter so right shipping the we tend so way shipping activity, because quarter. third a of we to the our highway in the cost third

Yes.

second the that there costs. The incurred million that impact the, would have have would run $X.X River of Mississippi in was other about quarter piece of some some, flooding was that cost in we been distribution through it

Tom Glinski

you that And the with Goderich, just it maybe labor you how the give back like any and at color year? second, just progressing next what see on going to in then could discussions conversations sounds the employees,

Kevin Crutchfield

end there to some can what it's we we and some of for fair myself because mean, grievance outstanding but at up our up I resolve Yes, that do together disputes category we not without and there can't about resolved the of try they talked mine time disputes, we Schuller continue we there to a laying the working Chief the work as number can had a new are we're, around been to and day partnership sure. set our to do as how employee management base the mutual along us. leadership as been to do need they with the them, allow diligently Operating team at to our goals need have Officer, do very union together, get well where the they with what partners George things well without there, to

solve well is and So partnership partnership shared for relationship and that good around together re-forge is table. as so George I have trying to work with safe and it is we're problems we everybody create Goderich a a do to what can the them profitable that productive because as

them just, it's to like as and at like treated wanted end working look, they of with I day, the it's to treating think So a be you'd pretty people the partner. like basic

to we'll but won't I going and trust, for set think And relationship. I the forge taken. time have some going, the will rebuilding we been look that we believe forward didn't Again this take didn't, relations of continuing we overnight, steps will it here, overnight, out forward. stage get proper better we get

Operator

Please We will with go now ahead. take from next our Zekauskas Jeff JPMorgan. question

Jeff Zekauskas

snow there of the is but some in and any Was early early snows that were October season of the was Chicago. there quarter influence Minneapolis that fourth some Dakotas because snow snow snowfall I appreciable in in And and know no? and or

Brad Griffith

not too No, it's, really pre-fill. early seeing on we're are yet, seeing nice Jeff, it's we're that

we're excited about that. So

to to not, appreciable But yet. it's impact start see snow it's it's Hey, So to nice it's get going. see not nice yet. it

Jeff Zekauskas

costs geological that your you your could issue say then increased And by $X quarter? million the in

Brad Griffith

yes. Yes,

create impact in in come impacted the the quarter wafer in the cost for period. our producing geology the tons we of current to the of P&L that the through So account our way because fewer

Jeff Zekauskas

as in in then program that $XX annually much you where your were CapEx of in in future the you expectations million you as Because you optimization number. your terms that that? normal And were capital saying get or expenditure not effect, million a million as to number lastly, $XX could saying cost to $XXX to you

Brad Griffith

to able business, Well, other profits higher plan. we a maintenance our invest should million, call way. to it there mine to opportunities any absorb of internally, saying be impact is, generate to you've of that And I the right are let's related million. million invest we're $XX opportunities $XX number to what the $XX got to said along long-term

mine plan not the will items are the over not There it's other So time. difference. is long-term there that come CapEx through

Jeff Zekauskas

a program So saying? more not intensive? your Is operational? is what Optimization that you It's optimization are capital program.

Brad Griffith

I'm yes. Yes, sorry,

investments and the So we'll there the is, done that but and do to color will clarity it flow capital that business. we require generate can and quickly, things more give but make any in we'll and that is some will as certainly incremental cash operational as require don't will are opportunities about mostly be more there higher quickly identified capital that profitability and drive that can

I will would, opportunities identify to as categorize would invest. but I yes, we it there So first operational

Kevin Crutchfield

cetera. about, terms we we'll and as payback, then out pretty look we've and forward and we've spend that allocate what projects opportunities, kind to of rank all figure good And can all I is order the idea the on think amount at of et how a in that will then return, talked of them what in range we

gone, and then enter going place we there forward. in And we phase there deploy that a then and is the it's is approach period, so capital process will when the the gone, for will next very disciplined

Operator

question with Crespi. Monness, our now ahead. Chris Shaw We’ll next go from Please take

Chris Shaw

Coming Brazil second. to back for a

your the that particularly in how you the inventory think Is seeing of business too that are distributors when dial I they guess Brazil, BXB in is people of much not get past inventory is maybe on issue, not, given this better have over BXC I you back. or the bought do doing that? is sense think Just I worried there sort channel any

Brad Griffith

I that's question. Again, a think great

two we when look call segments we BXC on know, You direct-to-farm business like our our business, you at delineated how POG. that those

ground So we on not get not in distribution, the it’s through team warehouses. in it's sitting and that sitting product

in So is product named is statistics that crop. used earlier farm getting that getting that I the on the

a customers it's On and of have that to think the sort which of significant of that competitors business, side direct I commercial inventory. amount the commercial be less they could

what in years there I from channel, that prior have inventory in certainly not think but players. is in seen it's the other some Brazil I

the to inputs just as and of in terms global managing it's more think I in going aggressive of of be market how wallet. share terms demand producers some concern around of their and uncertainty are of

will. of So uncertainty and the of of I sort if more sense that that's on more, side a you the more channel epidemic, situation things, versus

Chris Shaw

producing are share guess terms in ahead a and market question back all I of the and I more continue Goderich going to that mine or do see of the salt I more And as try price. then get some versus shifting to guess a improve cost sacrifice conceptual how volume just to longer-term guess thought you're I guess more like the out I operations to volumes. in flood And market mean do how what's you to you volume going want forward, cover there you, you to prices. and going

a have ahead? philosophy You going

Kevin Crutchfield

our to because point value fair fair always try Yes, we achieve want to for products.

we to occur the be to import side. be extent I there taking potential, successful will So that the will we absorption Goderich in will its fully first the are which believe that

exercise then volume. of expense in salt on import and the what which itself kind of would margin depending lose we’ll and be buying a from there, of expansion So

to decide stealing current market. ultimately can the think about market share market longer in to ought We as we Goderich Then be. reach opposed

cost us to to able give will it now. where we So reach relative structure the it are because a have be you do longer to

we're a it how period. that's approaching gradual So over

a comments minute lines made just to clean I it. on that up some I geology just the want defining open. earlier, Hang specific to while

good what's a even gives So you mentioned radar meters XXX And ground And more, so the or then in that of direction. little on go kind around with in Michigan. can I have definition like question maybe more the and drop that is something that. a penetrating so, laterals horizontal then bit off any view the we drilling, sort as mile of of

setting think of breadth the the focused defining happening sort it the long-term I the mine relates day-to-day perspective reserve the impact data decisions issues plan. interesting helpful of up base we're in decisions what's and localized geologic and and While about what that Michigan month-to-month is to is as on

that was relative cleaning clear. So before, to want just what just of record to it be kind said up on so I I

Operator

We’ll go David Begleiter take Please Deutsche question from Bank. next ahead. our now with

David Begleiter

the just those taking market deicing issue, end a versus staying day? share. between What's perhaps involved the since you of market reach two, steel the and difference else's both mentioned, longer highway the on someone business at Kevin it's

Kevin Crutchfield

become it or think it or option saying maybe at a not we’re to Yes, that's it or an not. a Eastern think make just But does share cost we're in that point. cost structure a you about possible, to of about not westward, we think about when fair And us. I'm do it look, there perspective. achieve market talking structure look not from I something a we potentially and option the think is will state to Europe and that And does or when steel it we Eastern reach. moving it. I a it state in economics over talking Western the will sense half And

to a internally itself. margin have a it to be was is Does So relative we're we that extra and from when pushing it to presents for sure serve look been, we in high-class discussion with of will margins it having the we now. that that to ton are discussion will approach we've When problem. forward market It where get perspective. out it grow distance sort incremental happy

David Begleiter

few year’s And operational does recapture issues? XX% some the this to due year this years bid increase volumes you've last in all loss

Jamie Standen

and recaptured more reduced think lot down a So two go, we the XXXX. coming in off share. came there commitments when so kind our recall our a was bit mild winter we little our back we've back is market you'll We to of took That of that of because commitments.

back. a we there go is a lot. of got bit not most more We've to So believe it

David Begleiter

you. Thank

Kevin Crutchfield

to do Brad, add a little bit want you color? Yes,

Brad Griffith

of explained David terms our comment we Just to learning as product is how just in it our pertains that reliable as what specification want customers supplier, options. the Kevin from has is I'm other become product global as coveted

the to I there the to - think on of that packaging no business. commercial business we're opportunities going going question side And side I on think So in are either improve. there we're the is mind, chemical my of the

addition demand In team deicing to the the highway is a right book of side now. on our of business, sitting

term putting it, first you those are forward allocate really looking to to problem it's Kevin like So tons we a world use. so in and

Operator

with Instructions] next [Operator question our take Morningstar. now from Goldstein We’ll Please Seth ahead. go

Seth Goldstein

is impact timeline today to continued margin on? expect Can the on quantify Just light production? produce you next couple assuming so to cost and at ask one about increase be years, decreased And to the volume question, updated you lot for the when there Salt we've over full continue and a issues, geology recent you plan. an talked but I of know in

Kevin Crutchfield

similar over year-over-year, continuum. XXXX. of, into kind look still through we step think change October, I full up of that what so function be We're Yes a process I can the - into magnitude XX%. going and another we said think we're determining expect in we're production circa XXXX

our future, this long-term to plan anything got we've the to going prove not to ourselves up time, in getting mine again, for So because it's quarter take example. some work trying for set towards

through you this. and work compromise to short-term XX through make we reserves years’ mistake of don't worth Because thinking as want a here

going but plan. able in this execute time, generate some team's in place, ability we'll have be I'm once to to it And we mine confident it's it. very to against the take So then

Seth Goldstein

next expect American Okay, or North planted then turn from of a XXXX what's in initial in higher year to SOP you read we sort the micronutrients and And there? great. as your business, rebound would strong acres

Brad Griffith

micronutrients know a expect I'm to the take Brad macro you that. acre powder disbursal nutrients. our ride on we And as the dry again. Yes, certainly

those a opportunity our have, that development implemented products. for to more to planted So An take ride the and approach nutritional fertility acres macros we've we our systems-based more are exciting as nutrients applied. with field. micro There a significant is a to

about edge rate branded to with X% United the in is grower it States as system. practice called Matt X% in cases We've win XX%. and a What a see some America crops we in Compass of over the South standard improvement XX% for and superior yields this and it's fertility

farmer value attractive our and the generate return for we very investments. products do So on know a is their what create

So normalize. things as

micronutrients We weather, have and will, you range 'XX the mid million a you key specialty we where both see range in And normal in row in to addition if crops We those soybeans. for a anticipate, XX our corn in to well. in crops more SOP acres. we low as to sell acres some the see plan have for of portfolio of we

yes, bullish on are XXXX. we So

Theresa Womble

you, today. I think going Q&A everyone Thank to that's for the be it

questions. If have you answer contact please questions you. additional any Investor will Thank be to Relations here your

Operator

concludes This you you participation, your disconnect. may Thank today's for call. now