February 10, 2011

The Andersons Q4 net income rises on strong gains

The Andersons Inc. said on Tuesday (Feb 8) that its net income increased in the fourth-quarter as strong growths were recorded in its grain and ethanol division as well as in its plant nutrient unit.

The agribusiness company said its net income rose to US$25.8 million, or US$1.39 per share, compared to US$16.2 million, or 88 cents per share, during the same period last year. Revenue for the quarter was $1.15 billion, compared to $916 million during the same period last year.

The results widely beat analyst expectations of 87 cents per share on revenue of $1.06 billion, according to a survey.

Shares of Andersons rose US$4.45, or 11%, to US$45 during after-market trading.

The company said its ethanol division returned to profitability during the quarter, putting the company in line with other agribusiness conglomerates, like Archer Daniels Midland Co., which have seen profit margins improve at ethanol plants, as gasoline prices have increased. Anderson said it expected the improvements to continue through 2011.

For the year, the company reported net income of US$64.7 million, or US$3.48 per diluted share, compared to US$38.4 million, or US$2.08 per share, during the same period last year. Revenue for the year was US$3.4 billion, compared to US$3 billion the prior year.

The company said its Grain and Ethanol Group's operating income for the year was US$81.4 million, compared to operating income of $51.4 million in 2009. It Plant Nutrient Group had operating income of US$30.1 million in the year, due mainly to an increase in volume of more than 30%. In 2009, the group had an operating income of US$11.3 million.