The Andersons Inc., Maumee, Ohio, reported first-quarter net income attributable to The Andersons from continuing operations of $6.1 million ($0.18 per diluted share), compared with $12 million ($0.36 per diluted share) in last year’s first quarter. EBITDA from continuing operations was $55.8 million, compared to adjusted EBITDA of $63.2 million last year.
The company said grain basis values for its Trade segment were driven sharply lower during the quarter due to the run-up in futures prices resulting from the war in Ukraine. Propane sales were also down from last year. The Trade segment recorded pretax income of $3.7 million and EBITDA of $20.8 million for the quarter, compared to adjusted pretax income of $14.3 million and adjusted EBITDA of $32.5 million in the first quarter of 2021.
The Plant Nutrient segment posted record pretax income of $10.7 million, compared to $8.5 million in 2021’s first quarter, with strong margins more than offsetting a decrease in volumes for most fertilizers. Plant Nutrient’s record first-quarter EBITDA was $18.8 million, compared to $16.0 million in last year’s first quarter.
“Fertilizer prices and farm income both remain very high, and while producers are feeling the impact of high input costs, commodity prices still support fertilizer application,” said President and CEO Pat Bowe. “We continue to receive good support from our suppliers in this time of tight stocks. Supply remains a factor in our industry, and market prices reflect reduced global stocks for most fertilizers and grains. Our teams are executing well and remain focused on customer needs and operational excellence.”
The Renewables segment reported pretax income attributable to the company of $5.5 million and EBITDA of $24.4 million in the quarter, compared to income of $2.9 million and EBITDA of $22.0 million in the 2021 first quarter. The Andersons cited improved margins at all ethanol facilities, strong feed and distiller corn oil values, and profitable third-party trading of ethanol, DDGs, and renewable feedstocks that more than doubled last year’s first-quarter results.
“We continue to believe that we are well-positioned in all businesses for the remainder of 2022,” Bowe said. “We are closely monitoring the weather-related planting delays in both corn and soybeans. While progress is being made, we are behind the five-year national average for this date and expect planting activities to ramp up quickly as soon as fields allow it.”