MAUMEE, OHIO — The Andersons, Inc. posted positive third-quarter results for the quarter ended Sept. 30. The company posted net income of $12.8 million, equal to 70c per share on the common stock, up nearly 21% from $10.6 million, or 58c per share, during the same quarter of 2007.
Net revenues were $906 million, up 64% from $554 million during the third quarter of the previous year.
For the first nine months of 2008, the company’s net income was $66.3 million, or $3.60 per share, up 46% from $45.3 million, or $2.48 per share for the same period in 2007. Net revenues were $2.7 billion, up 69% from $1.6 billion the previous year.
"Our third-quarter and nine-month results are both records, however, we were disappointed by the sudden turn of events in the fertilizer markets," said Mike Anderson, president and chief executive officer. "Our current guidance is $3.50 to $4 per diluted share. The current guidance is also partially attributable to the economics in the ethanol industry. Numerous other factors will also have a bearing on the full year outcome, such as; grain prices, timing of railcar sales, and the performance of our equity investments, which include Lansing Trade Group and the ethanol production facilities."
The Grain & Ethanol Group’s operating income was $9.4 million in the third quarter, which was below its year earlier result of $13.7 million. The company said its grain business benefited from significantly improved basis income, and that it had recovered most of the basis losses incurred earlier in the year. The Grain & Ethanol Group’s operating income through the first nine months was $31.7 million in 2008. In 2007, operating income through September was $35.9 million. Total revenues through September 2008 and 2007 were $1.8 billion and $950 million, respectively, the company said.
Income from the ethanol business declined $8.8 million during the most recent quarter to a loss of $2 million. The decline was attributed to the combined performance of the company's investments in three ethanol limited liability companies.
Third-quarter income from the group’s investment in Lansing Trade Group was $2.6 million, which was $1 million lower than last year. Total third-quarter revenues for the group were $651 million, compared to total revenues of $383 million for the same period last year. While revenues for the group are higher, the company said such amounts do not serve as good predictors of income or economic performance in a commodity based business. During the quarter, the group purchased a grain storage facility, and leased two others, increasing its storage capacity by 7.6 million bus.