Maumee, Ohio — Fueled by record income from its Rail Group, The Andersons Inc. on Nov. 5 announced third-quarter net income of $16.9 million ($0.90 per diluted share) on revenues of $1.1 billion, up from last year’s third-quarter income of $10.9 million ($0.59 per diluted share) on revenues of $939 million. Nine-month earnings were $64.5 million ($3.43 per diluted share) on revenues of $3.6 billion, compared with $73.4 million ($3.92 per diluted share) on revenues of $3.3 billion in 2011. Third-quarter operating income from the Plant Nutrient Group, at $0.8 million on revenues of $135 million, was down from last year’s $6.6 million and $138 million, respectively, due to lower margins. Nine-month operating income for the group was $34.5 million on revenues of $619 million, compared with $35.8 million and $521 million, respectively, in 2011. Higher year-to-date revenues were attributed to increased volume and higher selling prices. Driven by higher lease and sales income, the Rail Group saw third-quarter income soar to $19.1 million on revenues of $60 million, compared with $1.1 million and $24 million, respectively, in last year’s quarter. Thanks to an early harvest, the Grain Group also saw third-quarter operating income climb to $10.8 million on revenues of $677 million, compared with last year’s $8.3 million and $539 million, respectively. Third-quarter results for the company’s Ethanol, Turf & Specialty, and Retail groups were disappointing, however. Citing lower ethanol margins, the Ethanol Group posted a third-quarter operating loss of $0.9 million on revenues of $210 million, compared with earnings of $4.4 million and revenues of $179 million in 2011. The Turf & Specialty Group had a third-quarter operating loss of $1.6 million on revenues of $22 million, compared with last year’s operating loss of $1.2 million on $23 million of revenues. The Retail Group had a third-quarter operating loss of $1.8 million on revenues of $35 million, compared with last year’s operating loss of $1.2 million and revenues of $36 million. “Our expectations for the remainder of the year still remain tempered by the drought, which will continue to impact our grain and ethanol businesses through the first half of 2013,” said CEO Mike Anderson. Anderson highlighted the company’s recent Green Plains Grain Company LLC acquisition (GM Nov. 5, p. 13), and said this and other expansions will pay dividends in the future. “We will effectively manage through the 2012 drought, as we have to date, and will continue our focus on long term earnings growth,” he said.
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