The Andersons profit soars in third quarter
Nov. 9, 2011
by Eric Schroeder
MAUMEE, OHIO — Net income of The Andersons in the third quarter ended Sept. 30 was $10,925,000, equal to 59c per share on the common stock, up sharply from $1,394,000, or 8c per share, in the third quarter last year. Sales were $938,660,000, up 33%.
The Grain & Ethanol Group’s operating income in the quarter was $12.8 million, up from $2.5 million in the third quarter last year. The Grain division benefitted from continued strong space income and record third-quarter earnings from its investment in Lansing Trade Group. Revenues for the grain division advanced on higher grain prices.
The Anderson’s Ethanol division rebounded from a loss of $800,000 during the third quarter of fiscal 2010 to post income of $4.4 million in the most recent quarter. The gain reflected the company’s investment in three ethanol limited liability company affiliates.
Most other The Andersons divisions performed better than last year, with the Plant Nutrient Group earning $6.6 million during the third quarter (versus $1.5 million during the third quarter last year); the Rail Group operating profit was $1.1 million (versus $100,000); and the Retail Group had a loss of $1.2 million (versus a loss of $1.7 million).
The exception was the Turf and & Specialty Group, which saw its loss widen to $1.2 million from $300,000.
“We are pleased to be able to report record year-to-date earnings,” said Mike Anderson, chief executive officer. “Our earnings continue to be led by our Grain & Ethanol and Plant Nutrient Groups. The performance of the operating teams in this positive agricultural environment has resulted in strong returns on all assets, including acquisitions made in recent years.”
Net income in the nine months ended Sept. 30 was $73,409,000, or $3.96 per share, up from $38,828,000, or $2.11 per share, in the same period a year ago. Sales were $3,278,501,000, up 46% from $2,239,822,000.