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Mar 31, 2020
Andersons Q1 2020 Earnings Report
Reported a net loss due to the COVID-19 pandemic's negative impact, particularly on the Ethanol and Trade Groups, though the Plant Nutrient Group showed resilience.
Key Takeaways
The Andersons, Inc. reported a net loss of $37.7 million for the first quarter of 2020, primarily due to the impact of the COVID-19 pandemic on ethanol and corn demand. The Plant Nutrient Group showed improved year-over-year results, while the company focused on cost controls and cash management.
The company reported a net loss attributable to The Andersons of $37.7 million, or $1.15 per diluted share.
Adjusted EBITDA declined to $14.7 million for the quarter.
Ethanol and corn demand were sharply lower in March, reflecting reduced vehicle travel.
Plant Nutrient Group improved year-over-year results by $2.7 million.
Forward Guidance
The company is targeting at least $20 million in additional expense reductions in 2020 and expects to spend approximately $100 million on capital projects.
Positive Outlook
- Ample liquidity to withstand a protracted downturn.
- Targeting at least $20 million in additional expense reductions in 2020.
- The group expects continued pressure on the profitability of its Eastern assets until the 2020 corn crop is harvested.
- Margins are beginning to improve and present opportunities for its highly efficient plants.
- The group's near-term outlook is positive, as weather has been favorable for planting and a large corn crop is anticipated.
Challenges Ahead
- COVID-19 pandemic had a profound negative impact on operating results.
- Stay-at-home orders reduced vehicle miles traveled, which in turn dramatically reduced demand for gasoline, ethanol and corn.
- The group expects continued pressure on the profitability of its Eastern assets until the 2020 corn crop is harvested.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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