Andersons profits up on record rail, ethanol income
MAUMEE, Ohio — The Andersons Inc. reported second-quarter earnings Tuesday that were slightly higher than a year ago.
The Ohio-based agricultural firm had net income attributable to the company of $29.5 million, up from $29.2 million in the second quarter of 2012.
For shareholders, that translated to diluted earnings of $1.57 a share, up from $1.56 a share a year earlier.
"We had record quarterly results in both our Rail and Ethanol groups, and strong results in our Plant Nutrient Group," CEO Mike Anderson said.
The Rail Group had record operating income of $9.7 million, compared with $7.2 million during the same quarter in 2012. The group benefited from higher lease rates and increased income from railcar financing.
The Ethanol Group had record operating income of $10.6 million, compared with a $2.1 million operating loss in the 2012 quarter.
Anderson attributed the turnaround to "significant ethanol margin improvement." He noted an increase in the average price per gallon of ethanol and said the company benefited from added volume from its production facility in Denison, Iowa.
Anderson cautioned that the ethanol market will continue to be volatile.
The Andersons' Grain Group had operating income of $2.1 million, down from $15.3 million a year earlier. Anderson attributed that to the 2012 drought, which led to significantly reduced income from storage space.
The effects of the drought may affect third-quarter income, too. But Anderson said a projected record corn crop should have a positive effect the last three or four months of this year.
In East Central Illinois, The Andersons has grain handling and storage facilities in Champaign and Mansfield.