Ethanol business spurs earnings at The Andersons

by Eric Schroeder
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MAUMEE, OHIO — Net income at The Andersons Inc. in the second quarter ended June 30 was $25,488,000, equal to $1.43 per share on the common stock, up 146% from $10,347,000, or 68c per share, in the second quarter of fiscal 2006. Sales rose 68% to $634,214,000 from $378,109,000 in the year-ago quarter.

Operating income in the grain and ethanol group rose to $11,981,000, up sharply from $1,923,000 in the second quarter a year ago. Revenue in the grain and ethanol group rose 117% to $323,580,000. Sales included more than $57 million of ethanol sales made by the group as part of a marketing agreement with ethanol joint ventures.

"Grain benefited from improved storage income and fee income for originating corn for ethanol companies, including those in which it is a significant investor," the company said.

The Andersons said its ethanol business also performed well during the quarter, with the Albion, Mich., and Clymers, Ind., plants in full swing.

"Our second-quarter and first-half results are gratifying," said Mike Anderson, president and chief executive officer. "The entire Plant Nutrient team did an excellent job in responding to unprecedented market demand this spring, our Grain and Ethanol businesses continued to achieve significant income growth, and we were again able to expand our railcar fleet."

Mr. Anderson said the company has raised its full-year earnings guidance to a range of $2.90 to $.315, up from the $2.35 to $2.60 per share projected during the first quarter.

For the six months ended June 30, net income was $34,727,000, or $1.96 per share, up 144% from $14,182,000, or 94c, in the first half of fiscal 2006. Net sales were $1,040,717,000, up 58% from $658,767,000.

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