Andersons’ 3Q spurred by Plant Nutrient Group

Maumee, Ohio-The Andersons Inc. reported net income of $1.4 million ($.08 per diluted share) on revenues of $707 million for the 3Q ended Sept. 30, 2010, compared with last year’s $1.3 million ($.07 per diluted share) on revenues of $601 million. For the first nine months of 2010, the company earned $38.8 million ($2.09 per diluted share) on revenues of $2.2 billion, versus last year’s $22.1 million ($1.20 per diluted share) on $2.1 billion. The Plant Nutrient Group saw 3Q operating income of $1.5 million on revenues of $129 million, up from last year’s operating loss of $2.8 million on $70 million. Volume was up 60 percent due to re-stocking of the nutrient pipeline spurred by rising grain prices, an early harvest, and favorable application weather throughout the Midwest. Margins were also improved due to price escalation. Nine-month operating income for the group was $21.2 million on $461 million of revenues, versus last year’s $9.6 million and $380 million. The company said the year-to-year improvement was due primarily to a significant increase in volume as spring and fall application rates of potash and phosphates returned to more normal levels and re-stocking occurred in the third quarter. The Grain & Ethanol Group’s 3Q operating income of $2.5 million was below last year’s $8.9 million. The grain business benefited from increased gross profit on grain sales due to the early harvest, but this was more than offset by a significant decrease in space income due to basis losses. The group’s operating income through the first nine months was a record $42.8 million, compared with 2009’s $23.5 million. The company attributed the nine-month results to increased performance in all businesses ?Çô grain, ethanol, and Lansing Trade Group. “We were pleased with the performance of the Plant Nutrient Group, which typically has little to no income during the third quarter,” said chairman and CEO Mike Anderson. “As it relates to our results through September, the Grain & Ethanol Group had record results of $42.8 million, and our Plant Nutrient Group is having their second best year, surpassed only by the unprecedented earnings seen in 2008.”