The Andersons Inc. reported net income of $68.8 million ($3.75 per diluted share) on sales of $2.38 billion for the year ending Dec. 31, 2007, nearly doubling 2006’s record breaking performance of $36.3 million ($2.19 per share) and $1.46 billion, respectively. Fourth-quarter net income was $23.5 million ($1.28 per share) on sales of $784.6 million, up from the year-ago $13.8 million ($.76 per share) and $463.4 million.
“To be reporting record breaking results for the fourth consecutive year is truly gratifying,” said Mike Anderson, The Andersons president and CEO. “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.” He also said it was 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,” said Anderson.
Plant Nutrients exceeded income records, ending the year with operating income of $27.1 million on $466 million in revenues, versus the year-ago $3.3 million and $265 million, respectively. The 2007 income is more than double the group’s prior record of $10.4 million in 2005. Total nutrient volume for the year increased by more than 40 percent. Fourth-quarter operating income was $8.7 million on sales of $140 million, versus the year-ago $1.3 million and $67 million, respectively. Sales volumes remained high in the fourth quarter as a result of increased wheat acres and stepped-up buying in the face of further escalation of nutrient prices and robust demand driven by anticipated strong corn acres in 2008.
Grain & Ethanol operating income for 2007 was $65.9 million, more than double the year-ago $28.0 million. Total revenue from this group was $1.5 billion, up from the year-ago $791 million due to increased ethanol capacity and production.
The Turf & Specialty Group’s full year operating income was $95,000 on revenues of $103.5 million, versus 2006’s $3.2 million and $111.3 million, respectively. The 2007 shortfall was attributed to reduced sales of insecticide and fungicide, as well as the escalation in raw material costs.
The Retail Group had operating income of $100,000 on sales of $180 million, versus 2006’s $3.2 million and $177 million. In 2007, the group recorded a $1.9 million impairment charge on certain retail assets.
The Rail Group reported operating income of $19.5 million on revenues of $129.9 million, compared to the year-ago $19.5 million and $113.3 million.