Maumee, Ohio-The Andersons Inc. reported net income of $7.8 million ($0.42 per diluted share) on revenues of $713 million for the first quarter ending March 31, 2008. The results reflect a 15 percent drop from last year’s first-quarter income of $9.2 million ($0.51 per diluted share) on revenues of $407 million. The Grain & Ethanol Group’s first-quarter operating income of $2.2 million was significantly less than its year-ago result of $10.2 million, which the company attributed to cash prices for grain commodities failing to keep pace with the futures market, and to rising inventory carrying costs associated with higher grain prices. The company said income from its ethanol joint ventures grew significantly during the quarter, however. The Andersons said its Plant Nutrient Group achieved “unprecedented” first-quarter results, postings record operating income of $7.5 million on revenues of $105 million, compared with an operating profit of $0.4 million on revenues of $67 million in last year’s first quarter. “These earnings resulted from significant margin increases primarily resulting from inventory price appreciation, which began last year and has continued into 2008,” the company said, noting that sales volumes were down slightly from last year due to the escalation in plant nutrient prices. The Andersons also saw good results from its Rail Group during the first quarter, with record operating income of $6.4 million on revenues of $35 million, compared with $3 million and $26 million, respectively, in last year’s quarter. President and CEO Mike Anderson said the company was excited about its recent purchase of Douglass Fertilizer & Chemical in Florida (GM May 5, p. 1), saying the acquisition “is consistent with our strategic goal of increasing our plant nutrient footprint and national market share through geographic expansion.” The Andersons said it anticipates its full year 2008 earnings will be within a range of $3.65 to $4.00 per diluted share.
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