American Rock Salt sales decline 8.5% as the result of mild winter weather

By Lisa Kerner

Charlotte, N.C., Jan. 5 - American Rock Salt Co. LLC saw its sales slip 8.5% for the fiscal year ended Sept. 30 as a direct result of unusually mild winter weather, according to comments made during Friday's earnings call.

Chief financial officer Raymond Martel said total sales of $95.7 million reflected a 16.5% decrease in tonnage sold, partially offset by a 9.5% increase in sales price per ton.

"The decrease in tonnage sold was due significantly to milder and drier winter weather conditions in fiscal 2006 as compared to fiscal 2005," Martel said.

American Rock Salt board member Neil Cohen noted that production at the mine had been strong in terms of cost and volumes. However, based in part on predictions by the National Weather Service, the company has temporality suspended salt production as it waits for winter weather.

"Our stockpile network is full and we have no additional capacity to store salt," Cohen said during the call.

"We continue to maintain a status of readiness to allow a quick response when and if a more normal winter weather pattern arrives."

The company did report positive net working capital up $23.5 million for the year, compared to $18.0 million in fiscal 2005. American Rock Salt had cash on the balance sheet totaling $2.5 million, $2.0 million available on standby letters of credit and $8.4 remaining on its working capital revolver.

American Rock Salt is a Mount Morris, N.Y-based highway de-icing rock salt miner.

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