Weak prices and trade concerns plaguing the U.S. grain market had a negative impact on area agribusiness The Andersons Inc., which reported a third-quarter loss on Monday of $2.1 million, or 7 cents per share, which compared with quarterly profit of $2.5 million, or 9 cents per share a year ago.
Analysts had expected earnings of 15 cents per share.
The company, which is headquartered in Maumee, reported third-quarter revenues of $686 million, down 18 percent from a year ago.
Though it had positive earnings from its ethanol and rail division, the company’s grain and plant nutrient groups had pretax losses in the quarter of $8.6 million and $8 million, respectively.
“The overriding driver of our third-quarter results was the mark-to-market impact on our grain inventories that we believe will substantially rebound before year-end,” Pat Bowe, company president and CEO, said. “The Ethanol Group continued to perform well despite tough market conditions, and Plant Nutrient and Rail results were not much different than those of last year’s third quarter.”
The grain group was hit hard by falling grain prices, mainly corn and soybeans, on the nation’s commodity exchanges.
The Andersons said it was the result of near-record corn and soybean yields coupled with reduced exports resulting from trade tensions with China. “The situation was compounded by significant movement of grain from on-farm storage that occurred later than usual as farmers carried corn further into the summer than recent years,” the company said.
However, the low prices have provided the company with an opportunity to fill its grain storage facilities at low price levels.
In trading on the Nasdaq market Monday, The Andersons’ stock gained 34 cents to close at $37 a share.
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