The Andersons: Reports Q1-2020 Results

Maumee / OH. (tagg) The Andersons Inc. announced financial results for the first quarter ended March 31, 2020.

First Quarter Highlights

  • Company reported a net loss attributable to The Andersons of USD 37.7 million, or USD 1.15 per diluted share, and an adjusted net loss of USD 43.2 million, or USD 1.32 per diluted share.
  • Adjusted Ebitda declined to USD 14.7 million for the quarter.
  • Ethanol and corn demand were sharply lower in March, reflecting reduced vehicle travel.
  • Trade Group reported a pretax loss of USD 10.0 million, and an adjusted pretax loss of USD 8.7 million, as lower ethanol demand caused significant depreciation in corn basis.
  • Ethanol Group recorded a pretax loss of USD 37.4 and a pretax loss attributable to the company of USD 24.0 million, including USD 14.7 million of non-cash mark-to-market and inventory adjustments.
  • Plant Nutrient Group improved year-over-year results by USD 2.7 million, recording a pretax loss of USD 1.2 million on lower operating and interest expenses.
  • Rail Group earned USD 1.0 million of pretax income on lower lease income.

«The Andersons is a key player in essential businesses that are a part of the North American agriculture supply chain, and despite the challenging environment caused by the Covid-19 pandemic, our company remains healthy, resilient and strong,» said President and CEO Pat Bowe. «We have continued to operate throughout the pandemic except for the previously announced ethanol plant maintenance shutdowns, and our balance sheet remains solid; we have ample liquidity to sustain us.»

«We thank our employees, particularly those working in our plants and operations, for demonstrating their commitment to the company and to our customers and communities by keeping our businesses running safely and effectively during this time. We have maintained as our top priority the health and safety of our employees, who have performed admirably in these difficult conditions. We extend our sympathies to those in our communities who have been directly affected by Covid-19.»

«Most parts of our business were off to a decent start to the quarter, but the Covid-19 pandemic had a profound negative impact on our operating results. Stay-at-home orders reduced vehicle miles traveled, which in turn dramatically reduced demand for gasoline, ethanol and corn, significantly hurting the performance of both the Ethanol Group and Trade Group,» continued Bowe. «The Plant Nutrient Group demonstrated resiliency during the quarter as results improved year-over-year and benefited from a good start to the planting season.»

For additional information please read the Company’s PDF file below (162 KB):