In the second quarter ended June 30, The Andersons sustained a loss of $26.7 million, which compared with income of $14.4 million in the same period a year ago. The most recent quarterly results included a non-cash and nondeductible goodwill impairment charge of $42 million related to the Plant Nutrient segment. Adjusted income, meanwhile, totaled $15.3 million, equal to 54¢ per share on the common stock, up from $14.4 million, or 51¢, in the same period a year ago.
Revenue for the quarter was $993.7 million, down from $1.064 billion in the second quarter of 2016.
|Pat Bowe, chief executive officer.|
“For the third successive quarter, our Grain Group recorded significantly improved year-over-year results,” said Pat Bowe, chief executive officer. “The second quarter improved by approximately $20 million, primarily because the group continued to earn better space income. These results have transpired even as low grain prices have discouraged growers from selling old crop corn, and the market is encouraging the group to hold grain to earn storage income farther into the season. The Grain Group’s affiliates also improved their performance year-over-year.”
In the second quarter of 2017, the Grain Group posted pre-tax income of $6.9 million, which compared with a loss of $13 million in the same period of last year. The Andersons said the base grain business drove about 70% of the increase, while the group’s affiliates accounted for the rest.
The Ethanol Group’s pre-tax income for the second quarter was $4.7 million, which compared with $6.2 million in the second quarter of 2016.
“Ethanol margins were lower year-over-year for the quarter as supply outpaced demand, and the group is still dealing with both vomitoxin-related discounts and otherwise low distilled dry grain with solubles (DDGS) values relative to corn,” Bowe said.
The Rail Group’s pre-tax income for the quarter was $5.9 million, down from $6.6 million in the second quarter of 2016.“The Rail Group’s base leasing income and utilization improved sequentially, perhaps signaling a modest market upturn,” Bowe said. “We closed our four retail stores and have now incurred most of the costs of exiting the business.”