The Andersons Inc., Maumee, Ohio, reported second-quarter net income attributable to The Andersons of $36 million ($1.05 per diluted share), down from $55 million in last year’s second quarter. Adjusted net income came in at $39.5 million ($1.15 per diluted share), down from $51.8 million.
Adjusted EBITDA was $98 million for the quarter, down from $144 million last year. While adjusted pretax incomewas up in the company’s Trade segment, to $9.5 million from $7.2 million last year, results were down for the Renewables and Nutrien & Industrial segments.
“Overall, our second-quarter results were consistent with our expectations given the shift in ag markets over the past several months,” said Chairman and CEO Pat Bowe. “Renewables had a very solid quarter with increased ethanol production and higher margins but didn’t match last year’s results on declining co-product values. Trade results were slightly improved from last year despite lower prices and volatility.”
“Nutrient & Industrial had solid results although well behind last year’s outsized performance given weather-related delays and lower margins,” Bowe continued. “Farmer selling remains relatively quiet with adequate supply in this low-price commodity environment. We are seeing the benefits of our portfolio mix with grain assets and our growing premium ingredients business helping to offset a reduction in merchandising opportunities.”
The Nutrient & Industrial segment reported pretax income of $23 million for the quarter, down sharply from last year’s $43 million, with EBITDA falling to $32 million from $52 million. The company said volumes were negatively impacted by a late and wet spring application season, while declining nutrient prices failed to provide the “margin opportunities” seen in previous years.
“Also impacting the year-over-year comparison was a 2023 second quarter that had a significant shift of income from Q1 into Q2,” the company said. “The engineered granules business saw improvement in the quarter on higher sales volume. Looking forward, second half agronomy sales and applications are dependent on the timing of harvest and grower’s overall profitability.”
The Renewables segment reported second-quarter pretax income of $39 million and adjusted pretax income attributable to the company of $23 million, down from last year’s $67 million and $32 million, respectively. Renewables posted second-quarter EBITDA of $52 million down from $74 million in 2023.
The company highlighted its announcement in June to acquire an ownership interest in Skyland Grain LLC, with grain and agronomy assets across Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles.
“We are devoting significant resources to this opportunity and expect to provide an update later in the third quarter,” Bowe said. “Our longer-term Renewables projects are moving forward, and we are focused on lowering the carbon intensity of our ethanol plants. We continue to manage a robust pipeline with meaningful growth opportunities in each of our businesses.”