ANDE Andersons

Mike Hoelter VP, CC&IR
Pat Bowe President, CEO
Brian Valentine EVP, CFO
Ben Bienvenu Stephens
Ken Zaslow Bank of Montreal
Eric Larson Seaport Research
Call transcript
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Ladies and gentlemen, thank you for standing by, and welcome to The Andersons' 2021 Second Quarter Earnings Conference Call. [Operator Instructions] I will now like to hand the presentation over to your host Mr. Mike Hoelter, Vice President, Corporate Controller, and Investor Relations. Please go ahead, Sir.

Mike Hoelter

Thanks, Valerie. thank XXXX joining earnings and Andersons for everyone, quarter second call. morning, you us for The Good

We have provided today's discussion. a slide presentation that will enhance

and available and the If webcast, and the sync. presentation this will recording webcast commentary be slides slides and remarks made non-GAAP This recorded, are you're in financial the of various will which being Actual to via is Reconciliations contain company's supporting materially non-GAAP be factors. on the viewing the subject our performance differ in company's encourage these page the and included future as forward-looking review financial statements constitutes measures comparable of GAAP discussed the described result information risks prepared reports factors, today to forward-looking of These our most Investors conditions. respect reflect uncertainties. measure industry directly website are current the statements many presentation. Certain events, We with results at financial with shortly. views file appendix to within This SEC. of could on presentation this the that today's a you to are measures. and

call President After to Officer; be with On and Chief Executive Pat Executive over take today your and to happy our now Officer. and Vice the Brian Pat. will Bowe, me Chief Financial turn prepared remarks, Valentine, will President are the call we I questions.

Pat Bowe

our to call Thank you, morning joining Mike, results. and this for everyone. good our you second morning, review Thank quarter

I'm trailing well of had stocks Trade have also with greater to improved months markets providing as of through and and I'm quarter, we're one of strong good they -- Corn was another with a run our quarters merchandising, results, particularly our than four second since each proud and executing Winter rate return trading quarter well Andersons' they opportunities seeing $XXX in customers. areas wheat performance our combined results. into excess We our tightening our of that to of the carry EBITDA Group $XXX Nutrient are in unrealized are hedging and grain The generated note mark-to-market adjusted results resulting we best very Group draw key in recorded growing corn segments merchandising XXXX, excellent losses and markets. soybean conditions our we and provided third-party pleased grain extraordinary the its very outstanding, In some elevation million, best the draw the the buying our our service better-than-expected our pleased company ever its co-product was strong It's achieved team in wheat outstanding best and dynamic harvest performance had opportunities. late XXXX. XX recorded income since The in and XXXX. area, excellent segment, also reversal anticipate values recorded from quarter. with business to and Plant programs. goal established million manufacturing the second solid harvest. from where in Ethanol year-over-year volume

railcars and primarily As anticipated, Rail placed. Fertilizer for are and slightly on product in normal prices. remain favor second margins prices reported of supplies than of lines scrap improved and end fall being economic for were of higher all quarter tight up the opportunistic orders strong high results scrapping out demand. on life

led cost incentive implemented accruals half to efforts results last see reduction that has strong for We over years, continue benefits to the the larger although several from compensation. first were

outlook for XXXX. the I'll be things discuss over Now to I'll of and Brian, back to when turn he's finished, rest our

Brian Valentine

million and Andersons reported adjusted share now to per We're to of net the in $X.XX $XX.X $X.X compares approximately or revenues million to variable XXXX, year-over-year, compensation administrative of $X.X income share accruals on diluted increased share Slide billion. net diluted per XXXX. to second with income second second and increase to expenses the or relating net quarter of results Operating, five. on XX% billion quarter In of the number and general XX% the incentive revenues attributable date. was Adjusted of morning, to quarter per $XX.X company of Ethanol per to and million XXXX of Plant of to The $XXX adjusted the EBITDA diluted quarter good Trade, share our everyone. $XX.X million quarter million This strong Pat, and the for The Thanks, second turning in $X.XX $X.XX Nutrient. income million adjusted $X.XX on was $XX million the of higher net second diluted XXXX. EBITDA or on for of compared or performance company the $XX.X the income for of quarter or $XX.X attributable

months report As XX we $XXX trailing Pat mentioned, of excited EBITDA were to more million. than

or income effective non-controlling effective to of a of XX%. for quarter Our varies the an rate quarter forecasting rate taxes on tax recorded We and loss the at effective based rate tax year interests. full XX.X% amount the currently attributable of are each

Next, of we'll from debt. $XX.X the liquidity operations during up quarter, capital cash Slide second from million working and before the quarter changes XXXX. to generated move $XX.X million strong flow significantly of cash, six We in to discuss in

$XXX and have cause readily of at capital in equaled futures been our the as balance a reduced. prices borrowings reduction XX $XXX Our is compared levels. the markets million our outstanding increase by supported to borrowings seen in businesses. margin seasonal year-to-date year. our has as June inventories inventories this highest in full we've the And our primary short-term result XX spring March million of of nearly are in year our The $XXX in Higher of marketable million deposits. cash cash flows grain Typically, a XXXX occur working

We disciplined spending, be for to expect take to capital $XXX continue year. million the we a about to which approach full

a reduction reduced million priority, long-term and approximately the debt we XXXX. $XX have for of almost debt full million year $XXX long-term remains make Long-term We expect since debt to repayments of by year-end.

move move quarter adjusted $XX.X number of million $XX.X quarter our quarter broad second reported pre-tax as XXXX. million, of pre-tax of to beginning our Group million of compared $X.X the in portfolio. storage. due we income grain of to review earned consumers the was inventory on storage in paying Now each Trade Trade Merchandising sales income the nearly period on could for businesses, from compared to markets to market the income in XXXX across EBITDA in second not double the the of of strong same seven. and Trade's income XXXX. Elevation the four margins a of with to of have Slide was exceeded million the volatility be to replaced $XX.X held and for quarter EBITDA we to were adjusted adjusted increased

XXXX. contributor ago. demand significant by a Ethanol Moving in products. the a second from Ethanol's of second dramatically Slide quarter increase rebounded high-protein of up corn was $XXX,XXX This income significant the as these values, to the were were feed, values pre-tax attributable to quarter to eight. was DDGs year distillers a from oil driven Board in quarter million driving market margins. including positive company the $XX.X Co-product of margins and again during crush

the higher year-over-year. Third-party our also quarter ethanol trading results million than XXXX. $XX.X gain unrealized and recorded XXXX, higher from mark-to-market and were significantly net our renewable the in Ethanol we of second EBITDA million the quarter Last, of fats oils second $XX.X of $X.X of million the second of up gain last in recorded quarter year. in that diesel, million was $XX.X

Each the than turf a profit demand, recorded material ton continued pre-tax led million Nutrient had business to second lines. increased Having inflation. nine. engineered of in specialty the improvement positioned healthy quarter, Slide quarter, margin million well Volumes granules income and Nutrients' remain in $X.X second $XX.X quarter of quarter in our the in income pre-tax labor lines to X%. of Plant more quarter in million, our increase challenged The strong improvement from lines Plant XXXX of inventory Turning product of supply EBITDA $XX $XX.X business to an our with chain again our million $X.X second cost ag of and for period per gross improvement although compared XXXX. product was of million. an the manufacturing approximately

Slide business to opportunistic with scrapping of same last of the earnings continues in management. XXXX of pre-tax The period expense high good compared quarter reflect railcars The second $X.X combined recorded scrap million with change the for year-over-year million the Turning XX. of $X.X of values, Rail out year. favor at earnings pre-tax older to

about of As we've still signs rates generated are of $XX.X a is below before, renewal in but discussed expected slow have traffic, are Rail recovery. million to lease that, improvement There rail averages. this with line long-term industry for quarter, the Pat in was the EBITDA the to to of some And for now year. back turn remainder with quarter the second thoughts of XXXX. like which things I'd

Pat Bowe

Thanks, Brian.

opportunities that portfolio believe agricultural to continue in strong. We will our remain

some While expect continues demand averages. historical slowed, crops in has grain This demand support export for us in the an seasonally demand opportunities. U.S. of higher conditions. to than global seeing XXXX. and high trade parts Crops and will into areas additional prices we that abundant are elevation draw world our while merchandising great other dry are We're provide shape, about country harvest optimistic

are fall's positive we growing supplies our harvest to mixed. be Given Worldwide outlook these remain are projected conditions, Trade U.S. this segment. beyond our conditions for in tight and

expected margin. risk we're the remain and disciplined and is wheat to to plant carry but large volatile Some more are harvest pandemic returned focused old of The expected strong winter markets for able demand reduce dry shutdowns will dramatically than continue. it's of maintenance corn good eliminate crop see and slow We in wheat, XXXX acquire the demand earlier co-products quarter. worldwide third the supplies and impact on harvest strong corn these industry and minimal to Tight slowdown has support overall demand. we opportunities our from management. through to trading the estimated. A continues board to not up production Gasoline

We plants our continue at good margins. and to produce new our and Iowa Kansas feed Denison, high-protein from both products our Colwich, sell

Our end to margins. co-product plants quarter. to by We're begin shipments capitalize the improved California. from of low that carb the we'll positioned on third CI and ethanol Kansas awaiting to efficient plant approval We're our higher are well receive Colwich, values it hopeful

fall Use Demand summer continued specialty and our and been liquids demand volumes. from strong, the stocks, on to sequentially to to rail but We ago, rates. into XXXX and but are expect long-term also year. up significantly perform reset for well. have than our price looks lower Rates trend are typical products be expect and tight renewals granules to lease still for lease industrial engineered than carloads Nutrient increased that year Without lower next agricultural solid. has business we Plant a the continue

industry. We continue slow this to a see in recovery

remain idle scrap railcars the exciting when We do ag ag. effectively growth to hand to sense committed value out for opportunistically so. to sustainable continue and including and entertain the opportunities, pursue that, With to in to those will and and position to happy about continue and of back Valerie, very operating of in like risk efficiently, safely we'll and our good call questions. stakeholders. have supply to be economic We We're adding chain our it positive makes I'd -- favor all our your managing


Thank comes Instructions] Bienvenu first Our Stephens. you. [Operator of Ben from question

Your open. line is

Ben Bienvenu

Everybody, congrats everybody. quarter. morning, good on Hey the

Pat Bowe

Ben. you, Thank

Ben Bienvenu

commentary I gave helpful moving want the to forward. on ask, business trade some you

and prices You expect high continued volatility.

sounds you improving think did little be I'd elaborate slightly a a curious about on that saw if comparability we of the for half bit in if what of XXXX. outlook what that of think You the XXXX, the you two compare would to could well back periods? as pretty good -- back as note as like about you How just half the we carries.

Pat Bowe

Ben. Yes. unfold good stuff to of Lots Sure, there.

each space remain across U.S. a to of feed strong. So really ingredients It's increased those our tighter product as a an Trade will well times the very opportunities inverted at those lines. different Group has our good interesting think our range wide or an just we've as products This margins for the in market trade outstanding We job S&D. exports. for of merchandising team capturing and both is done across had margins

of a lot have who do to know We just experienced traders how that.

harvest, into late think for So red the of us. damage opportunities bit than little we was the creates some good normally see put We rains, harvest. what volume put that wheat I wheat good, because We good for of soft the more and were had us, just wheat was but the behind to you us and some able that bins. that a would

exciting nearby are a carriers into elevators the is part markets. corn good red regions all in think that And crop really in come cash we so back where some that Overall, for our I the have to we markets assets shape. conditions the tributary wheat soft little bit and to are see

know, Michigan, of and been may we has in belt some the which us underway Dakotas which now up and Illinois, there the kind Ohio, But the plains As coming We're Minnesota out is good. in Indiana, of our corn there, really grain good that hitting dryness harvest back kind is spots good of in from and this some the are have in in really Louisiana off harvest hold first good year, other coming a parts production. the exciting. right

fourth very You to want Ben, really point, a good we a last remind I made had analysts, good though, the quarter year.

quarter. fourth fourth quarter. carry, shipped of had an you amount because soybeans really the out of a high extremely the If good in It of we recall, lack

-- have to second I very see it the good things be with exceed half chance we'll having a strong had a a second comparable if matched year we a year, think potential we'd half with should away. real of year, quarter to last overall But we we to quarter that if last very have that. or happy So say, I go

other good has we that hitting some Minnesota production. belt hold the and of in good harvest really this first in coming now in from We're in there some the dryness Dakota back grain are right us But North been kind year kind the spots is know, Louisiana of harvest Illinois, out off As Indiana, plains may Michigan, the Ohio, exciting. good. and up our which really the have underway a one which of is and good coming parts in

we good fourth than last a a analysts I very had made You good though point to want quarter really the year. remind

the If an because out a quarter. we carry, of the had It really you fourth fourth external recall high in quarter. of lack amount shipped good soybeans of

the have things go we'll second March than of happy second But be to say quarter last think real quarter see half last potential overall a half we exceed strong chance year, having of if have we with had to very year, So, good of we'll comparable very it a a with that. year away. a we'd should if

Ben Bienvenu

That's Great. color. Yes. great Understandable.

Once change? I'd Yes, You to just ramp ability talked about pathway about approval. you the that. does getting think ramp Is it California, it have about a that carb step your shipments? pathway we should to certified hear function Or how curious for up? up be

Pat Bowe

uneconomic. thing is if Yes, ship time, we it approval, the ahead that ramps of up an carbs because expect would be very

So West have we Kansas little the trains shipped taken we take It's any of than won't we until approval. to thought. Coast a out longer

little approval able classic So where we're we having approval be, in but behind being but maybe with and that process, our mentioned carb the disappointed just as to government optimistic we're we're like and process, to I a ship, comments. that's about would

time take We So we promptly, of a will won't get ship all of little be shipments as ship we time. started. -- sort that build to ahead and anything won't we'll up

Ben Bienvenu

Okay. one Great. for me. Last

ethanol. Just on

you kind better your environment, a of thoughts just kind on I little there kind see forward. using been as on is know stocks get Production the reactive. few -- views we it all as for moving I'd outlook seems had S&D. know export view the curious to weeks. or curious how last like your for the your perspective got number well Just of to be proactive maybe your today. commentary bit this of market maybe I it's

Pat Bowe

think Yes. on of it. I right top Ben, you're

a little demand better. and started stocks a was out the were call before bit and So just were softer, little

driving we're season finish a think strongly. I summer going from to it So

of general, type question any Exports, levels. to variant will been demand the Covid a the to delta gasoline back think what about be what return flat in big restrained have But probably like. to 'XX the toward work and programs. be probably say I'd implications would I optimistic looks we've

that aware So Even of. see any we'll that we're U.S. big fairly but steady, is be we priced. ethanol now though pickups right don't

of outlook the is So what for we're kind ethanol. about excited

a I some and right players seasonal challenge and normal inverse corn tight price in shutdowns. will be really really with spring availability industry some for taking is their the of think big a the now, maybe just

we downs, finish kind But shut And will through tight so think I spring second and going pretty I'm think of it think the we're round the we're to see sorry, of shutdowns. S&D remain fall, year. tight

So way we're feeling how pretty good the about today ethanol up. things and is shaping look

Ben Bienvenu

Okay. Great. Congrats again back and the good luck half. on

Pat Bowe

Yes. Thank you.


Bank comes Ken next Our of of question Zaslow from Montreal.

Ken Zaslow

Hi. Good guys. morning,

line -- does What crop. you a the what than the that a is it the as opportunity by are it of coming be will couple opportunities tight questions. greater you'll around not having incremental years was One couple of index better of you or usually out a basis you to in -- that a that you the it create the corn your it rest -- and -- have guys back, will of crops actually, given usually are said, Just had. bring again, or

Pat Bowe


Ken Zaslow

benefit. Now getting guys it like you the seems are

how that crop -- season? over that How the does play out? So out the next work does

Pat Bowe

right see a That's you as wheat total really we wheat though with us having some quality about wasn't the that production The with XXXX, just rains Belt Eastern hurt extremely big wet available bushels remember And causing liked even good even now, and good. probably was production, production. thing to those some really would good total Yes. is as Ken. was sprouting, kind the like late have of point, when how

for yields true last Midwest our weeks. could we're good, majority the was corn should harvest. looks scales be fall the and It The across across good the volume strong. same that seeing of So and be here few for in

opportunities more will country not pressure of on bases. we the the be always some disruption, parts just have may like of we'll those some good and country is will be keep -- that have feeling that good, as others. short pockets to We and this the see we're with volume to where may different some So also relative

some So domestic trading good opportunity. that creates

So parts and It's type of the good and industry. I think the country same they've be continue good won't that production. for of that been us those for will tough have just on dry where and successively

Ken Zaslow

-- I two margin on corn generate I'm percentage with, much start your questions Okay. And corn -- oil? how Ethanol about side, were to was the your to I'll that I'm then would it assuming one the corn -- for able good you -- different, And here. of your it? frame If yield but think out, been on a assuming I'm is, oil margins that structure take Is how from oil. have can vastly us? assuming, you

Pat Bowe


So I pound mean, the moved a up in to see if $X.XX $X.XX a down mean, pound. I oil has $X.XX lows you what corn from to

a can as every corn year conventional up trading our using we're squeezing we new out we're And So achieving. brand-new ago. oil which deployed not yet. fully some technology There oil. a desk a to are technologies. technologies high possible, oil we've over ounce as we extensive yield But potential as some for of set We've veg are extraction get

products. And so grease, that well veg white other oil our as soybean the from plants from plants, oil trading and as desk fats handles not and other DCO only but trading,

that we the significant So a be for big renewable we've business feedstock to become for a green diesel market. us. diesel see pretty supplier And

and originate produce raw materials in see supply players, do those beef as now. and merchant of oil crusher several agreements on with core that or to While work renewable place can of have a bean tallow, we're processor ourselves as not we several of a we diesel a

within renewable has fit where market this us emergence for new So of overall the exciting been thing and that. diesel can we the

have it's just veg than entire to oil we the at complex. So I look think broader DCO,

Ken Zaslow

going oil open being likely more of leverage How just to with participating the the do about in to share diesel able going -- a to is get margins the thought you have to to Or be that? renewable opportunity? And think you able and share corn that it you're you're sell market?

Pat Bowe

also who of a now. lot Yes. on producers as working both working diesel materials. going Well, raw have the we're And others side, the exciting that's with the There's supply with part well. where the right renewable discussions we're on,

a ethanol As space the Marathon you have renewable player they're in we know, in our with diesel. partnership Petroleum a and

with had participants a lot to a discussions in we've have lots this that them. of lot others And everybody. we good of now this with relationship a new new them So are So is -- industry, are of right?

or in the opportunities it, equity it's are about us and side with and ag of create going excited agreements partnerships All some to very participation. supply

that people to -- of within we're the with going kind both with discussions good now of we're all of in on lots industries. So announce, clear nothing but middle right

Ken Zaslow

then last Okay. my question is ethanol And on outlook.

And be again, peers do playing the your see of XXXX, be soft drag maybe how quarter out? next better Some of will you'll in that the into anything XXXX. the Do you XXXX fourth quarter you in and you And will assume situation would will about kind said I and of think a better. be see guys that over that? ethanol be

will Just and and leave you. Thank kind what I on there. of long-term thoughts figuring out it ethanol. are your Short

Pat Bowe

with agree those comments. I

the for is high the players I think in prices and in challenge -- basis the the quarter. high corn third the corn industry just that most

lesser will quarter. third So have opportunity than the margin fourth quarter

to softened DDG muted. meal, DDG little Still say markets Soybean bit the values down have got a soybean have have little feed wanted -- or come don't bit, if has from you sorry, been oil exports they a were. market has I'm international where

in margins about quarter. fourth and into if we're seen, remains we not as 'XX. see quarter be optimistic we'll fourth the as So the good to are think as in That third but quarter

for So $XXX about – going Ken, me to the because EBITDA I'm million not sure, ask you're

Ken Zaslow

don't have anymore. I to

Pat Bowe

I the just to credit want get hitting trailing XX,XXX. for

so able I'm do that. that often, -- to that us we're excited remind So of you quite we're

Ken Zaslow

away our and see I And job, that I an calls. you, think nothing and be. take should done in usually I never you've from You excellent

agree have great job. done happen I to So a that you

Pat Bowe

you. Thank


comes question next of Our Eric from Larson Research. Seaport

Eric Larson

Thank everyone. you. morning, Good

MTM derivative as the is, quarter, what question enter So is my balance? your you first third

Brian Valentine

or $X more but or it's today. a sit It's sheet, $X on gains of the of plus balance -- to less probably we million kind it's less or million wash minus sitting a more It's Eric, as actually, wash.

were So to last probably itself. at your that had predicted, you asked a of we year-end, lot point about time stuff, the as question you reversed

Pat Bowe

crush. took in news our as that on losses of because we about the our good mark-to-market big in We it some The -- hedge had Eric positions earlier back got we -- quarter losses and spades. ethanol in

Brian don't now. right have mentioned, As we much

Now that and ends markets see could because however, the volatility. and -- come on that was a MTM quarter ending to those shift third just numbers booked. the us quite the just It to in bit can fourth, back you have have so much that nice

really So that felt nice.

Eric Larson

want Yes. in No, call volatility, was probably it grain quite I time, the because maybe most dips volatile that the happened had seen really pretty years. the you And the figured probably grain XX second because dip it some -- was the amazing. was. grain if quarter price that I've to That

figured reversing themselves. probably MTMs of the you I benefit So those got that

have of but the going was good clearly the the should down it I the swing, not the to Yet, that that's talking I ethanol off year, strong but difficult it's year going but of your to in planting -- question, going seem a be -- money it's this have a did doesn't quarter also a to probably I mean, might trading, it's in ball. And not Ben, crop cover next supplies. we're it probably kind lot the to believe ethanol blows relatively observation? at look corn in of to fair a you second encourage areas. utilize going farmers on I and something lose about up maybe prior you a tight and a in -- understand chunk so when So that Is good going you fourth in against the mean, the difficult a you isn't half. fall. we're to like trading be have for the more but you're stretch lot fourth comps seasonal some quarter. other comp

Pat Bowe

Brian I'll in and think chime I really let it's here. fair,

I we for think number how sure will the don't finishes. ethanol be know

how optimistic fact, and good driving We're In that and about we talked it. demand about feel looks.

that I we year. good be that fourth So quarter remains of last had will elevation bean to good itself, reminded, as a are Ben, be seen. much number Whether a than that's better the period going crop. we Trade, repeat lap and to just But could last a year. that in have kind really

do We have supplies. margins. We are going higher have tight to

didn't the little about a on a to you're probably to are was So quarter say that, run as in it We I of and Prices good in reset had we year. out more huge a into number, you we're and you really said. in conservative feel we've half of pushing us that get number stable, that good a fertilizer beat time, because year's fertilizer. fourth and the second or hard can PN going by be it, [indiscernible] but Eric, blow water me trading, give last hard. would the grain

good see wet, So know. Beans should as we're you it applications. good about and been fall pretty feeling have

drying so beans a And sidedress in areas. under our applications coming good could there be some lot of

against and So ethanol, we're optimistic about to have but just execute fall it. fall PN

Eric Larson

more fourth for because fourth weather comment final the about just little bit of quarter. fourth I May be bit I my that thought. just maybe faster it lot maybe flattened on then haven't the seen income had didn't the put any the for into sharp Should come curve on really talks would premium some We've of futures in of itself kind And didn't quarter and off quarter? inverse early itself in optimistic how June. than that market in And I number old in out. much But we the the we grain storage Okay. a -- quite would crop, think that I guess a a I and flatten be available. storage have

Pat Bowe

of wheat we're we the bit to numbers. be are little a Like bit don't little -- a carry going I getting Yes, cash there, think carry little those grain, a said, I big storage, bit. a in nearbys. But

with that a trade reaction to crop just will top. important little the most not carry, thing. time the and cherry going we think likely good just not right premiums a some that a counting big on it's big will get biggest be happen, have see weaker on be the and That's to we're I be bit to But If we and flow. expect now. thing at harvest maybe that

Eric Larson


middle is name my So Ken.

going question. ask I'm next So to the

of $XXX about for EBITDA what better. So adjusted or million 'XX

Brian Valentine

million $XXX 'XX, For or better?

Eric Larson

I mean Yes. -- Yes. congratulations.

Brian Valentine

feel of north right? just a say trailing I'd $XXX XX did we good, of We months million.

this fundamentals. demand feel good about overall As well. of team And year, the really half and execute back said, with good hopefully, to hopefully, good continues continues we Pat our and momentum

Pat Bowe

I good cost and Eric, that's years really we place a paid think on is making that our the put news, for off, have And three is and now savings growth. initiatives in us. difference last big the productivity focus the really

we either mentioned expansions two outlook as at three-year have as we'd or on, our facilities bolt to or in some well our some M&A. that So product technology

that a as level. in We what's We're are call excited lot and happening general, about and things at farm working opportunities in sustainable ag. as diesel ag on of area. the in renewable it, happening particularly level several about, the what's growth carbon excited just We're at well in

to we're across you chain, business business our if these look a of fertilizer and the feel renewable grain positioned our opportunities. with So and in ag biofuels business, up we our type very down well participate lot

penetrate placed as on really of starting as decarbonization there's and economy, ag one probably well no to that. Andersons U.S. The this capitalize to I think So now, the it's

makes about the future. excited So us that's what

Eric Larson

your markets to follow-up I thank a last already? you three your have And quickly sustainable. believe or numbers. in that said your million wrong this about it. million you you cost -- I what you you, I is down accomplished? on final the to clearly definitely true much carb $XX in Brian might of about it And how be P&L the us obvious Pat. cost give have follow-up. quickly feel Could numbers. have, going $XX I update come you mentioned $XX Got be million, I cumulative in goes with it, you it's four the was saves and of years. had Pat, probably those But will that question an you the here. over believe Can But on Well, and saves about of

Brian Valentine

Eric, to approximately $XX look, probably relative and to about million million we $XX reductions think about we to million XXXX. are If $XX total Yes. if XXXX, compared

the -- we you're of comp along feel in place, being that by cost management good P&L in offset this sure accruals and those that and everything seeing year. the mentioned, are our and a we're remain making higher way. disciplined we incentive in what is As been lot But we executed and have about

Eric Larson

a Thanks, congrats Good. again. great Okay. guys. And quarter on

Pat Bowe

Thank you.


further time. like this for closing no call Hoelter back over showing at the questions Instructions] to turn any I'd [Operator to I'm Mr. remarks.

Mike Hoelter

want Thanks, this Valerie. joining you for We thank morning. us to all

Eastern November call at X, scheduled results. review Our will next XXXX for earnings quarter third our Wednesday, a.m. XX we time, conference is Daylight when

thank in always, we for The As soon. speaking interest you your to Andersons, again look with forward and you


this today’s all does Thank for conference. and gentlemen you Ladies conclude participating.

may all great a You disconnect. Have day.