The Andersons released its financial results for the second quarter (ending June 30, 2020) and simultaneously announced a new business structure and organizational changes.
"I am proud of what we were able to accomplish in the second quarter, as all four of our business groups were profitable," President and CEO Pat Bowe said in a news release. "We are focused on transforming The Andersons into a more cost-efficient company positioned for scalable growth. Our vision is to be the most nimble and innovative North American ag supply chain company. The steps we are taking to transform the organization should ensure that we have the right vision at the right time to continue to serve our customers."
Founded in 1947 in Maumee, Ohio, The Andersons, Inc. has business divisions in commodity trading, ethanol, plant nutrient and rail.
Among the strategic business structure and senior leadership changes were the following:
- Trade Group and Ethanol Group will be combined and led by President Bill Krueger, who was formerly president of the Trade Group.
- Jim Pirolli, who was the Ethanol Group president, has been appointed senior vice president of the combined group, which will enable him to assume expanded responsibilities.
- The Plant Nutrient Group and Rail Group will be combined and led by Joe McNeely, who was formerly the president of the Rail Group.
"This new structure will enable us to focus on increasing gross profit and enhancing service to our customers, while also managing our cost structure," said Bowe. "The combination of the Trade and Ethanol Groups will allow for greater strategic alignment, risk management and integrated service to our customers. This restructuring of our business will also result in a leaner cost environment."
The company said the COVID-19 pandemic has brought changes to its business, but a successful planting season was also observed. For the fifth consecutive quarter, the plant nutrient group improved its year-over-year results.
"Our Plant Nutrient Group's income was up more than 20 percent due to an excellent spring planting season," continued Bowe. "Our Ethanol Group's navigation of the unprecedented decrease in demand due to the COVID-19 crisis helped produce good results under those difficult conditions. The Trade Group continued to feel the effects of a small 2019 corn crop in the East. Both the Trade Group and the Rail Group both felt the persistent negative impact of the pandemic on customer demand. Both groups were profitable for the quarter."
The Andersons will reduce its total invested in capital projects in 2020 saying it expects to spend approximately $100 million on capital projects in 2020 after averaging more than $200 million over the last three years.
"I want to again thank our employees, particularly those working in our plants and operations, for continuing to demonstrate their commitment to the company and to our customers and communities by keeping our businesses running safely and effectively during this time.” Bowe said. “We have maintained as our top priority, the health and safety of our employees, who have performed admirably in these difficult circumstances. We also extend our thanks to the health and safety personnel in our communities who have helped respond to the pandemic."