Maumee, OH — The Andersons, Inc. on Tuesday, Nov. 2, reported net income from continuing operations of $13.9 million in financial results for the third quarter ended Sept. 30.
"I'm pleased with our third quarter, particularly the record results of our Trade Group business," said President and CEO Pat Bowe.
"We benefited from outstanding execution by our team, strong demand, and relatively low grain stocks, including growth in new markets, such as renewable diesel and supply chain extensions with our new Swiss trading office.
"We continue to identify opportunities in these volatile markets and remain focused on an anticipated large 2021 harvest.
"Harvest in the corn belt is progressing and we are pleased that storage income has returned to the wheat and corn markets."
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Third Quarter Highlights:
- Company reported net income attributable to The Andersons from continuing operations of $13.9 million, or $0.41 per diluted share, and adjusted net income from continuing operations of $5.2 million, or $0.15 per diluted share
- Adjusted EBITDA from continuing operations was $56.3 million for the quarter, an increase of $9.3 million, or 20%, year over year; trailing twelve month adjusted EBITDA from continuing operations of $294.0 million
- Trade reported all-time record earnings with pretax income of $42.0 million and adjusted pretax income of $27.6 million on continued merchandising opportunities and strong elevation margins
- Completed strategic sale of Rail leasing assets and used proceeds to reduce debt
"Ethanol margins have strengthened through the fall maintenance season and U.S. stocks are low at this time," Bowe said.
"We are focused on risk management and effective hedging and continue to see strong returns from co-products, particularly distillers' corn oil. We anticipate strong fourth quarter margins in Ethanol.
Plant Nutrient followed up a great first half with a third quarter loss, which was in line with our expectations for this seasonal business. Fertilizer prices and farm income both remain high.
"We continue to receive good support from our suppliers in this time of tight stocks. Our teams are executing well and remain focused on customer needs and operational excellence."
"Lastly, I want to comment on the sale of our Rail leasing business that was announced on Aug. 16," Bowe said.
"This strategic sale allowed us to strengthen our balance sheet and focus on investing in our core agriculture businesses.
We completed the acquisition of Capstone Commodities on Oct. 1 which helps to expand our supply chain presence to southwestern U.S. dairy customers.
We continue to evaluate organic growth projects in grain, renewable fuels, and fertilizer as well as potential acquisitions and investments, with the goal of growing our ag supply chain and renewable fuels businesses while reducing our carbon footprint."
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