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Andersons reports 2018 Q1 net loss

Grain and ethanol businesses posted better year-over-year results, but rail and plant nutrient segments saw some weakness.

May 9, 2018

2 Min Read
Andersons reports 2018 Q1 net loss
The Andersons Inc./PRNewsFoto

The Andersons, Inc., Maumee, Ohio, has announced financial results for the first quarter ended March 31, 2018.

The company reported a first-quarter 2018 net loss attributable to The Andersons of $1.7 million, or 6 cents per diluted share, on revenues of $636 million. This result is an improvement of  $1.4 million, or 5 cents per diluted share, over the net loss of $3.1 million, or 11 cents per diluted share, on revenues of $852 million recorded in the same period of 2017. The company's earnings before interest, taxes, depreciation and amortization was $27.7 million for the quarter, 29% higher than the $21.5 million recorded in the first quarter of 2017.

The 2017 results included a $4.7 million pretax gain on the sale of underperforming Plant Nutrient Group assets as well as a pretax loss of $6.8 million related to the former retail business. The decrease in revenues year over year was primarily the result of the company's adoption of new revenue recognition rules at the beginning of 2018 that changed the treatment of a significant amount of grain sales transactions. This change has no impact on the amount of gross profit reported on these transactions.

"Our grain and ethanol businesses each posted better year-over-year results, and we achieved our $20 million run-rate cost and productivity improvement goal one year early," The Andersons chief executive officer Pat Bowe said. "We also entered into an agreement to help build the world's most technologically advanced dry-mill biorefinery. However, both plant nutrient and rail posted lower results year over year.

"Once again, our Grain Group improved year-over-year results in its base business in the quarter," Bowe continued. "Grain's affiliate, Lansing Trade Group, also significantly improved its performance year over year. The Ethanol Group benefited from higher than anticipated margins and stronger (dried distillers grains) values. While its lawn business performed very well, the Plant Nutrient Group's specialty fertilizer tons sold and margins were both markedly lower than a year ago. Rail's leasing results improved, but its service and other income fell, and income from car sales was lower, as expected, due to the previously disclosed revenue recognition rule changes. The company also incurred $3.0 million in severance and certain nonrecurring expenses during the quarter."

The Andersons is a diversified company rooted in agriculture. Founded in Maumee, Ohio, in 1947, the company conducts business across North America in the grain, ethanol, plant nutrient and rail sectors.

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