Maumee, Ohio-Propelled by a good performance from its Grain and Ethanol Group that partially offset declines in its Rail and Plant Nutrient segments, The Andersons Inc. on May 6 reported first-quarter net income of $4.95 million ($0.27 per diluted share) on revenues of $697 million, down 37 percent from last year’s $7.82 million ($0.42 per share) and $713 million, respectively. The Grain and Ethanol Group posted first-quarter operating income of $5.7 million on revenues of $481 million, compared to $2.2 million and $499 million in last year’s quarter. The company said its grain business had a record quarter, due in part to significantly higher space income, while the ethanol business lost slightly less than $1 million, due mainly to the combined performance of the company’s equity investments in three ethanol limited liability companies. The Plant Nutrient Group saw operating income of $2 million on revenues of $112 million for the first quarter, compared with $7.5 million and $105 million, respectively, in last year’s first quarter. The company attributed the income decline to lower overall margins that were impacted by a $2.9 million inventory adjustment during the quarter, but total volumes increased due to eight additional fertilizer and lime facilities acquired after the first quarter of 2008. Excluding these new businesses, the group’s volume was down roughly 15 percent due to spring fieldwork delays and de-stocking of retail dealer inventories. Hampered by double digit declines in rail traffic since late 2008, the company’s Rail Group posted first-quarter operating income of $0.9 million on revenues of $27 million, well below last year’s $6.4 million and 35 million, respectively. Gross profit from the group’s leasing business was significantly less due to lower utilization rates, increases in storage expense and maintenance expense, and decreased leasing rates. The Turf and Specialty Group posted first-quarter operating income of $3.1 million on $45 million of revenues, compared with $2 million and $40 million, respectively, in last year’s first quarter. The Retail Group reported revenues of $34 million for the first quarters of both 2008 and 2009. “Considering the state of the economy, we feel good about our overall performance so far this year,” said President and CEO Mike Anderson. “We are especially thankful for the diversity of our business units, as this purposeful diversification has positioned us to remain a strong and profitable company during uncertain economic times.” Anderson added that the company would not provide full-year earnings guidance due to “the impact of the unprecedented pressures facing the overall economy,” and other factors, including weather uncertainties and the volatility of nutrient and energy prices.
Transparency Across the Fertilizer Value-Chain