The Andersons Inc., Maumee, Ohio, reported a third-quarter loss attributable to the company of $4.2 million ($0.13 per diluted share) on revenues of $1.98 billion, compared to the year-ago loss of $2.1 million ($0.07 per share) and $685.6 million, respectively. Adjusted EBITDA was $42.5 million, up from $27.5 million. Revenues were up significantly due to this year’s acquisition of The Lansing Group.
Wall Street reacted well to the results, which President and CEO Pat Bowe said were “substantially better” than they would have been without the Lansing purchase. Shares closed Nov. 6 at $21.37, up 9.25 percent from the prior-day close.
“The Trade Group’s adjusted results were much improved year over year on stronger merchandising, though grain originations lagged due to limited farmer selling,” said Bowe. “We continue to see the benefits of our larger and more diversified Trade Group, whose results were substantially better than they would have been without the Lansing acquisition.
“I’m also particularly pleased that our Ethanol Group remained profitable despite difficult market conditions, outpacing many in its sector,” added Bowe. “In August, we began production at Element, our state-of-the-art biorefinery in Kansas, from which we ultimately expect industry-leading results. We also announced in October the merger of what had been four separate ethanol plant entities, three of which were jointly owned with Marathon Petroleum Corp., into a single entity jointly owned with Marathon just after quarter-end.”
The company’s Plant Nutrient Group (PNG) reported a third-quarter pretax loss of $7.4 million on revenues of $109.4 million, versus the year-ago loss of $8 million and $104.2 million, respectively. The company said the reduced loss was due to increased field activity during the quarter. EBITDA was $900,000, up from $100,000. Overall, the company said income improved 7 percent on better volumes and operating expenses. Margins were lower due to product mix. Carrying costs on higher inventory continued to be a headwind.
The company said PNG recovered some volume from earlier in the year that was delayed by the protracted spring rains.
Overall, third-quarter fertilizer volumes were up 18 percent, at 395,000 st from the year-ago 335,000 st. However, while primary nutrient volumes were up at 287,000 st from 214,000 st, specialty were down at 95,000 st from 108,000 st. Other remained stable at 13,000 st.
Nine-month net income attributable to the company was $11.7 million ($0.35 per share) on revenues of $6.28 billion, down from the year-ago $17.7 million ($0.62 per share) and $2.23 billion, respectively. Adjusted EBITDA was $171.4 million, up from $114.8 million.
PNG reported a nine-month pretax income of $4.5 million on revenues of $508.5 million, down from the year-ago $8.2 million and $542.9 million, respectively. EBITDA was $30.8 million, compared to $32.9 million.
While the company said primary nutrient prices remain soft, it expects a likely increase in 2020 corn acreage will help the PNG improve.
Nine-month fertilizer volumes were 1.56 million st, down from the year-ago 1.66 million st. Primary nutrient volumes were off slightly, at 1.05 million st from the year-ago 1.07 million st. Specialty were down at 467,000 st from 541,000 st, while Other remained stable at 42,000 st.