The Andersons, Inc. posts record earnings
February 07, 2008
by FoodBusinessNews.net Staff
MAUMEE, OHIO — The Andersons, Inc. on Feb. 6 posted record earnings for the fiscal year and fourth quarter with its net income for fiscal 2007 of $68.8 million, up 90% from $36.3 million in 2006. The company’s fourth-quarter net income was $23.5 million, up 70% from $13.8 million in the same period last year.
The Grain & Ethanol Group’s 2007 operating income of $65.9 million was more than double its previous income record of $28 million achieved in 2006. Total revenues were $1.5 billion for the year. This included $407 million of grain and ethanol sales made by the group in accordance with origination and marketing agreements between the company and its ethanol joint ventures, for which it receives a fee. The group’s 2006 revenues were $791 million.
The Andersons said total revenues in the Grain & Ethanol Group have increased for both the quarter and year due to a considerable increase in both the volume and price of grain sold, and due to an increase in the gallons of ethanol sold. Income from the ethanol investments grew significantly during the year because of the three ethanol plants in operation or under development: the Albion, Mich., plant began production in August 2006; the Clymers, Ind., plant began production in April 2007; and the third plant in Greenville, Ohio, is scheduled to begin production within the next week.
The group’s grain business also benefited from higher space and fee income. Additionally, income from the group’s investment in Lansing Trade Group L.L.C. was more than double the prior year. For the fourth quarter, the Grain & Ethanol Group's operating income was $30.1 million, in contrast to $12.3 million earned in the same three-month period of 2006. Total revenues for the quarter were $548 million, including $144 million of grain and ethanol sales made by the group in accordance with origination and marketing agreements with the ethanol joint ventures, for which only a fee is received. In comparison, the group's fourth-quarter revenues last year were $305 million.
"To be reporting record-breaking results for the fourth consecutive year is truly gratifying," said Mike Anderson, president and chief executive officer. "Our Grain & Ethanol and Plant Nutrient groups achieved phenomenal income growth this year, and the Rail Group maintained solid performance despite some tightening in the rail industry. To see the results of our strategic growth initiatives is very satisfying. Our investments in the ethanol business and Lansing Trade Group, and continual expansion of the rail business are clearly paying dividends. It was also rewarding to watch the Plant Nutrient Group rebound from the tough market realities of 2006 and end 2007 with record earnings — what a difference a year can make."