The Andersons Inc., Maumee, Ohio, reported second-quarter net income attributable to the company of $43.5 million ($1.30 per diluted share) on revenues of $3.27 billion, up from the year-ago $30.4 million ($0.92 per share) and $1.89 billion, respectively. Adjusted EBITDA hit a record, the highest ever for a quarter at $118.1 million, up from the year-ago $70 million.
Pretax income from the company’s Plant Nutrient segment was up at $24 million on revenues of $321.4 million from the year-ago $19.4 million and $279.8 million, respectively. Adjusted EBITDA was $31.6 million, up from $27.2 million.
The company said the Plant Nutrient segment saw margin improvements across the breadth of product lines and reflect strong demand, improved grower income, and well-positioned inventory, though it said its engineered granules manufacturing lines remain challenged with labor and material cost inflation.
“We expect our Plant Nutrient business to continue to perform well,” President and CEO Pat Bowe told analysts. “Without the typical summer price reset and continued tight stocks, fall demand looks to be solid. Demand for engineered granules and specialty liquids, agricultural and industrial products, has also been strong. We expect that to trend on into the next year.
“I’m very pleased that each of our four businesses delivered outstanding, year-over-year improvement with good execution in volatile markets,” said Bowe. “I’m proud of our team; they anticipated market opportunities and executed well. These market conditions play into our strengths of commodity trading, logistics, and position management. We expect that North American demand will remain strong and currently anticipate large harvests in our key draw areas this fall, which should drive strong performance into 2022.
“While ethanol margins have been volatile, risk management and effective hedging coupled with strong returns from co-products are evident in the segment’s results,” he added. “Plant Nutrient followed up a very strong first quarter with a great second quarter driven by strong margins in supply-constrained markets.
“And while Rail continues its slow recovery, it has capitalized on record high scrap steel prices to extract value on end-of-life railcars,” Bowe continued. “Lastly, I’m pleased to announce that our twelve trailing months adjusted EBITDA was greater than $342 million, well in excess of the $300 million run rate goal we established for 2021.”
Company-wide six-month net income was $58.6 million ($1.74 per share) on revenues of $5.91 billion, up from the year-ago loss of $7.2 million ($0.22 per share) and $3.74 billion, respectively. Adjusted EBITDA was $198.3 million, up from $81.3 million.
Six-month Plant Nutrient pretax income was $32.5 million on revenues of $490.7 million, up from $18.2 million and $404.7 million, respectively. Adjusted EBITDA was $47.6 million, up from $34.2 million.