Andersons, Inc. sales down 4% in Q1 2017
The Andersons, Inc. recently announced financial results for the first quarter ended March 31, 2017.
The Company reported a first quarter 2017 net loss attributable to The Andersons of $3.1 million, or $0.11 per diluted share, on revenues of $852 million. This result included pretax costs of $7.8 million related to closing the Company's retail stores, which is scheduled to be completed by the end of the second quarter. This result also represents an $11.6 million or $0.41 per diluted share improvement over the net loss of $14.7 million, or $0.52 per diluted share, on revenues of $888 million recorded in the same period of 2016.
"Three of our four businesses posted better year-over-year results," said CEO Pat Bowe. "While we are not satisfied with our overall results, we continue to work hard to improve execution, sharpen our cost focus, and position the Company for profitable growth. We are closing our Retail business and sold underperforming Plant Nutrient Group assets in Florida. We also acquired a small specialty grain handling and milling business that further expands our food ingredient capabilities."
Bowe continued, "For the second quarter in a row, our Grain Group improved year-over-year results in its base business by approximately $10 million as it registered improved space income that was partially offset by lower than expected basis appreciation in the quarter. In addition, post-harvest farmer selling has been slow. Grain's affiliates also improved their performance year over year. Ethanol benefitted some from margin hedging but is still fighting both vomitoxin-related discounts and lower DDG values relative to corn.
Plant Nutrient value added product margins continued to be compressed by oversupply during the quarter, although volumes are up year over year. Rail continued to profitably operate through what we believe are the later stages of a cyclical market downturn. Overall, we remain confident in our ability to deliver long-term value and growth to our shareholders."
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