The Andersons Inc., Maumee, Ohio, reported its Plant Nutrient segment had its best first quarter since 2008. Segment first-quarter pretax income was $8.5 million, compared to the year-ago loss of $1.2 million. Gross profit was $32.4 million, up from the year-ago $20.4 million. Segment adjusted EBITDA was $16 million, up from the year-ago $6.9 million.
“Plant Nutrient had its best first quarter since 2008, with increased volume and strong margins that we expect will continue into the peak planting season,” said President and CEO Pat Rowe.
The company said fertilizer demand was strong with an 18 percent increase in tons sold, in addition to stronger margins. Improvements were seen across all product lines and reflected demand from favorable early spring weather, strong grower income, and well-positioned inventory. The company expects fertilizer fundamentals to remain sold for all of its products.
Company-wide net income attributable to the company was $15.1 million, compared to a year-ago loss of $37.7 million. Gross profit was $122.7 million, up from $63.1 million. Adjusted EBITDA was $80.2 million, up from the year-ago $11.2 million.
“We are very pleased with the start of 2021 in this demand-driven agriculture rally,” said Rowe. “These results are our best first-quarter performance since 2014 and reflect good execution coupled with the results of our multi-year cost reduction program. Commodity price volatility and market dislocations have created merchandising opportunities in many of the commodity supply chains that we touch in our Trade business, and we expect that this will continue in the near term.
“Ethanol margins have improved significantly with ethanol prices reaching levels not seen in over six years, combined with strong margins on our newer high-protein feed and other co-products,” he added. “Finally, while Rail has been slower to recover, it has also seen improved results.”