The Andersons, Inc. announced its financial results for the second quarter ended June 30, 2021, with net income reaching $43.5 million, compared to $30.4 million in the second quarter of 2020.
"I'm very pleased that each of our four businesses delivered outstanding, year-over-year improvement with good execution in volatile markets," says Pat Bowe, president and CEO.
"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," Bowe continues.
"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."
Second Quarter Highlights
- Company reported net income attributable to The Andersons of $43.5 million, or $1.30 per diluted share, and adjusted net income of $43.7 million, or $1.31 per diluted share. On an adjusted basis, this was our best second quarter since 2014.
- Adjusted EBITDA was $118.1 million for the quarter, up $48.1 million year over year and represents the highest ever quarterly EBITDA. Trailing twelve month adjusted EBITDA exceeds $342 million.
- Trade reported pretax income of $13.8 million and adjusted pretax income of $14.1 million on strong elevation margins and merchandising results.
- Ethanol reported pretax income attributable to The Andersons of $23.5 million on improved co-product margins and strong trading results. "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," says Bowe.
- Plant Nutrient reported pretax income of $24.0 million on stronger margins in their key application season. "Plant Nutrient followed up a very strong first quarter with a great second quarter driven by strong margins in supply-constrained markets," Bowe adds.
- Rail reported pretax income of $3.1 million on end-of-life railcar sales. "While rail continues its slow recovery, it has capitalized on record high scrap steel prices to extract value on end-of-life railcars," says Bowe.
Bowe concludes, "I'm pleased to announce that our 12 trailing months adjusted EBITDA was greater than $342 million, well in excess of the $300 million run rate goal we established for 2021."
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