November 2, 2007

 

Andersons reports doubling of net income for the first nine months of the year

 

 

Andersons, Inc. on Wednesday (October 31) announced a 24-percent increase in third-quarter income and a doubling of net income for first-nine-months compared to the same period last year.

 

Net income was US$10.6 million or 58¢ per diluted share for the third quarter, up 24 percent from US$8.4 million, or 51¢ per diluted share for the same period last year.

 

Revenues for the quarter were US$554 million, up from US$336 million last year.

 

During the first nine months of 2007, the company earned net income of US$45.3 million double the US$22.6 million earned during the first nine months of 2006.

 

The Andersons' Grain & Ethanol Group's third-quarter operating income of US$13.7 million was US$1.8 million better than its year earlier result, which had included a 2006 gain of US$4.2 million from a business interruption insurance claim.

 

For the third quarter, The Andersons sold US$85 million of ethanol made by the group in accordance with marketing agreements between the company and its ethanol joint ventures, for which it receives a fee.

 

Income from ethanol joint ventures grew significantly during the most recent quarter. Both its Michigan and Indiana ethanol plants were in operation during the entire third quarter, the first quarter both plants were in full operation.

 

Third-quarter income from the group's investment in Lansing Trade Group LLC (LTG) was significantly higher this year.

 

The Grain & Ethanol Group's Operating income for first nine months of 2007 more than doubled to US$35.9 million from the US$15.7 million earned for the same period in 2006.

 

Total revenues through September were US$950 million, including US$171 million in sales of ethanol.

 

In comparison, the group's revenues for the first nine months of the prior year were US$486 million and did not include any sales of ethanol from the ethanol joint ventures. Total revenues in the Grain & Ethanol Group have increased for both the quarter and nine months due to an increase grain and ethanol sales on top of higher grain prices

 

The company's Grain and Ethanol and Plant Nutrient Groups are achieving excellent income growth this year, and the Rail Group is maintaining solid performance despite some tightening in that industry., said President and Chief Executive Officer Mike Anderson.

 

The company noted that the results of its agriculture related businesses were stronger than expected and announced on October 17th that an improvement in its full-year earnings outlook. While there are still various factors that could impact full-year results such as supply and demand dynamics in the grain and plant nutrient markets, the company believes it is the right guidance at this particular time.