The Andersons Says Plant Nutrients Posts Record Revenue – Product Commentary
The Andersons Inc. said on Tuesday that its plant nutrients segment posted record pretax income of $10.7 million.
On fertilizer supply:
The company also said, “Strong margins more than offset lower volume for most of our agricultural fertilizers, particularly in low-salt liquid starters and bulk nutrients. This is expected to continue into the second quarter. , the company said, given high grain prices and limited fertilizer supplies.
Pat Bowe, President and CEO of the company, said, “Fertilizer prices and farm incomes both remain very high, and while growers are feeling the impact of high input costs, commodity prices base still support fertilizer application.
He added: “Supply remains a factor in our industry and market prices reflect the reduction in global stocks for most fertilizers and grains.”
Bowe said the company is “closely monitoring weather-related planting delays in corn and soybeans. Although progress is being made, we are behind the five-year national average for this date and we we expect planting activities to ramp up rapidly as soon as fields allow.” He also said that “we have the opportunity to earn good elevation margins on our grain position.”
Planting for the Midwest is expected to ramp up quickly, despite a slow start, the company said.
“Continued merchandising opportunities and strong upside margins are expected over the remainder of the year as global stocks are unlikely to recover even with a strong harvest,” The Andersons said.
On renewable energies:
The company said its renewables segment reported pretax profit attributable to the company of $5.5 million in the first quarter, up from $2.9 million a year ago.
“The quarter-over-quarter improvement was driven by improved margins across all ethanol plants. Strong feed and distiller corn oil values continued,” the company said.
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