The Andersons: Reports First Quarter 2022 Results

Maumee / OH. (tagg) The Andersons Inc. announces financial results for the first quarter ended March 31, 2022. Highlights:

  • Company reported net income attributable to The Andersons from continuing operations of USD 6.1 million, or USD 0.18 per diluted share
  • Ebitda from continuing operations was USD 55.8 million for the quarter
  • Plant Nutrient reported record first quarter pretax income of USD 10.7 million
  • Renewables had a strong quarter with pretax income of USD 5.5 million despite an USD 8.3 million mark to market loss, most of which is expected to reverse in Q2
  • Trade reported pretax income of USD 3.7 million amid global disruption and against higher 2021 results; amassing strong grain ownership positions at low basis values
  • Amended and extended credit agreement, expanding capacity and extending maturity date to 2027

«The grain markets were impacted by the extreme run-up in futures prices resulting from the war in Ukraine. This drove grain basis values sharply lower. I’m proud of the merchandising teams as they worked through this unprecedented price volatility which allowed us to take larger ownership positions at good basis values,» said President and CEO Pat Bowe. «Plant Nutrient continued its strong run by setting its second consecutive quarterly earnings record. This strong performance resulted from well-positioned inventory and particularly strong specialty liquid results. In Renewables, production volume increased for both ethanol and corn oil. Renewable feedstocks and co-product merchandising were well above expectations.»

«We continue to believe that we are well-positioned in all businesses for the remainder of 2022. We are closely monitoring the weather-related planting delays in both corn and soybeans. While progress is being made, we are behind the five-year national average for this date and expect planting activities to ramp up quickly as soon as fields allow it. We have an opportunity to earn good elevation margins on our grain position. Ethanol margins have strengthened as we entered the spring maintenance season along with seasonal increases in driving demand and expectations for an increased U.S. export program. Our renewable feedstock business continues to grow and we are exploring further opportunities to improve corn oil production and quality from our plants,» added Bowe. «Fertilizer prices and farm income both remain very high, and while producers are feeling the impact of high input costs, commodity prices still support fertilizer application. We continue to receive good support from our suppliers in this time of tight stocks. Supply remains a factor in our industry and market prices reflect reduced global stocks for most fertilizers and grains. Our teams are executing well and remain focused on customer needs and operational excellence.»

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