November 6, 2008


The Andersons Q3 net income marks 21-percent increase

The Andersons Inc. has posted a 21-percent increase on-year in its third-quarter net income.

Net income reached US$12.8 million, while net revenues surged 64 percent on-year to US$906 million.


During the Jan-Sep period, the company's net income increased 46 percent to US$45.3 million. Net revenues were US$2.7 billion, up 69 percent on-year.


Numerous factors will affect the full year results, such as grain prices, timing of railcar sales, and the performance of the company's equity investments, said president and chief executive officer Mike Anderson.


The Grain & Ethanol Group's operating income was US$9.4 million in the third quarter, down from last year's US$13.7 million. The company said its grain business benefitted from improved basis income and it had recovered most basis losses incurred early in the year. The group's operating income during the Jan-Sep period was US$31.7 million.


Third-quarter income from the group's investment in Lansing Trade Group was US$2.6 million, a drop of US$1 million from last year. Total third-quarter earnings for the group reached US$651 million, up from last year's US$383 million.


While revenues for the group are higher, The Andersons said they do not serve as good indicators of income or economic performance in a commodity-based business.


During the third quarter, the group purchased a grain storage facility and leased two others, increasing its storage capacity by 7.6 million bushels.