Rohm and Haas Company (NYSE: ROH - News) today updated its fourth quarter 2006 and full-year earnings guidance, noting that sales and earnings in the Salt business are being negatively impacted by the warmer than average winter weather
This ice storm will be quite helpful for salt sales. CMP needs four or five more of these, IMO, to creep back up to "normal" levels, but three days of ice will use a lot of salt in any city.
Ouch. I apologize, points well taken and accurate. I intended to infer that 2006 on balance was mild (with snowfall especially light in the Northeast). Q1's mild '06 weather pretty much negated the heavy snowfall of q4 '05.
Too bad they don't use much salt in Colorado.
Bottom line for me is that I'm long on CMP and really not looking for short term trades, other than to buy on dips. I picked up a bit yesterday at $30, and will buy more if it drops.
Last winter started out equally as mild. It also continued to stay mild. Despite that, Compass managed through it exceptionally well. The only negative I can think of is that municipalities may have larger stockpiles of salt than normal because of the mild winter last year.
Get a real memory. 4Q05 was off the charts record heavy winter weather, which the company will remind you of when they report their shi-ty comp results. It was 1Q06 that sucked and dragged the 2005/06 winter season down to "average" levels per CMP management.
ps: I'm looking for buying opportunity myself, but I don't see value here north of $26/share.