MAUMEE, OHIO, US — The Andersons, Inc. sustained a 24% decline in second quarter adjusted net income compared to the same period in 2023.

The Maumee, Ohio-based company on Aug. 6 posted net income of $36 million, equal to $1.06 per share on the common stock, and adjusted net income of $39 million, or $1.15 per share. Adjusted EBITDA was $98 million for the second quarter, a steep decline from $148.7 million in the second quarter of 2023.

The Andersons saw year-on-year declines in adjusted pre-tax income for its Renewables segment ($32.4 million to $22.7 million) and Nutrient & Industrial ($42.6 to $23.4 million). The Trade segment saw a year-on-year pre-tax income increase from $7.2 million to $9.5 million.

"Overall, our second-quarter results were consistent with our expectations given the shift in ag markets over the past several months,” said Pat Bowe, chairman and chief executive officer of The Andersons. “Renewables had a very solid quarter with increased ethanol production and higher margins but didn’t match last year’s results on declining co-product values. Trade results were slightly improved from last year despite lower prices and volatility. With the majority of fertilizer applications occurring in the second quarter, Nutrient & Industrial had solid results although well behind last year’s outsized performance given weather-related delays and lower margins.

“Farmer selling remains relatively quiet with adequate supply in this low-price commodity environment. We are seeing the benefits of our portfolio mix with grain assets and our growing premium ingredients business helping to offset a reduction in merchandising opportunities.”

The Andersons noted that in its Trade segment, results from its grain asset footprint were better than the prior year, due to improved wheat storage income in the eastern grain belt. The segment’s growing premium food and feed ingredients business also showed year-over-year improvement, driven by the addition of ACJ International, acquired in July 2023, and other recent growth capital investments. The merchandising business remained profitable but below 2023.

Regarding its Renewables segment, The Andersons said margins on ethanol production improved year over year on lower corn basis in the east. Production facilities continued to operate efficiently in the quarter with increased volume and higher ethanol yields. Plant co-product values, particularly feed ingredients, were lower with feed ingredients following the overall price reduction of corn. However, feed ingredient demand improved year over year.

Volumes in its Nutrient & Industrial segment were negatively impacted by a late and wet spring application season in The Andersons’ market areas and declining nutrient prices did not provide outsized margin opportunities seen in prior years, the company said. Also impacting the year-over-year comparison was a 2023 second quarter that had a significant shift of income from the first quarter into the second quarter, it said.

Looking forward, Bowe said the company is actively pursuing growth opportunities.

“In early June, we announced plans to acquire an ownership interest in Skyland Grain LLC, which holds a large grain and agronomy footprint spread across Kansas, Eastern Colorado, and the Texas and Oklahoma panhandles,” he said. “We are devoting significant resources to this opportunity and expect to provide an update later in the third quarter.