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Andersons (ANDE) Rides on Strategic Objectives & Tax Reform

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On Feb 28, we issued an updated research report on The Andersons, Inc. (ANDE - Free Report) . The company is anticipated to benefit from its focus on strategic objectives in the Grain Group and Plant Nutrient Group, as well as productivity and cost-saving efforts. Reduction in tax rate due to the U.S. tax reform also bodes well for the company.

Strategic Objectives of Grain Group

Andersons’ Grain Group has achieved year-over-year improvements in five consecutive quarters on an adjusted basis. The company remains confident about its strong ownership positions and anticipates to earn solid storage income. It also expects that its affiliates and particularly Lansing Trade Group will be poised for improvement in 2018.

Upbeat Plant Nutrient Group

Andersons continues to believe in the long-term strategic value of the overall Plant Nutrient business, especially in the value-added products. The company remains optimistic about growth opportunities in the value-added Nutrient sector, and continues to develop new products to help farmers sustainably maximize yield and meet environmental challenges.

Cost-Savings to Aid Earnings

Andersons has made good progress on its second $10-million run-rate cost savings goal. The company remains confident that it will reach the overall goal of $20 million by the end of 2018.

Tax Reform to Boost Results

Andersons anticipates to benefit from a substantial decrease in its effective tax rate in 2018. The December 2017 tax reform has reduced the federal income tax rate from 35% to 21%. The company believes the new law beginning in 2018 will keep the company’s effective tax rate in the range of 23-25% for the year.

Andersons belongs to the Zacks Agriculture - Products industry along with other players like Cal-Maine Foods, Inc. (CALM - Free Report) , Cosan Limited and Monsanto Company .

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