Income rises sharply at The Andersons
May 03, 2007
by Eric Schroeder
MAUMEE, OHIO — Net income at The Andersons Inc. in the first quarter ended March 31 was $9,239,000, equal to 52c per share on the common stock, up sharply from $3,835,000, or 25c per share, in the first quarter of fiscal 2006. Sales rose 46% to $409,144,000 from $280,658,000 in the year-ago quarter.
Operating income in the grain and ethanol group rose to $10,170,000, up from $1,780,000 in the first quarter a year ago. Revenue in the grain and ethanol group rose 92% to $246,584,000. Sales included more than $30 million of ethanol sales made by the group as part of a marketing agreement with its new Albion, Mich., ethanol joint venture.
The Andersons said its grain business sold more bushels than during the same period last year, and average grain prices were more than 40% higher than year-ago levels. Operations also benefited from improved income from grain storage and fee income for originating corn for the ethanol companies, the Andersons said.
The company said its ethanol business also performed well during the quarter, with the Albion plant now in full operation. The Andersons said another plant in which it is a significant investor, located in Clymers, Ind., began producing ethanol this week.
Mike Anderson, president and chief executive officer, set the company’s guidance for the full year at $2.35 to $2.60 per share.