Andersons rides ethanol, rail groups to profit surge
CHAMPAIGN — Strong performances in the ethanol and rail businesses propelled The Andersons to a big increase in first-quarter earnings.
The Maumee, Ohio-based firm reported net income attributable to the company of $22.7 million, or 80 cents per diluted share, for the first quarter of 2014. That compared with net income of $12.6 million, or 45 cents per diluted share, for the first quarter of 2013.
"The superior results seen last year in both our ethanol and rail groups have continued into the first quarter," company CEO Mike Anderson said in a release. "The ethanol group worked diligently to increase its production in the first quarter when other ethanol plants were forced to reduce production."
The Andersons has six operating groups, and four of them fared better this year than they did last year in terms of income. The ethanol, rail and grain groups all had greater first-quarter operating income this year than they did a year ago, and the retail group had a smaller operating loss than it did a year ago.
However, the turf and specialty group had less operating income than it did in 2013, and the plant nutrient group had a larger operating loss.
The higher income for the ethanol group stemmed from strong ethanol margins that resulted from low U.S. ethanol stocks and improving domestic and export demand.
In East Central Illinois, The Andersons has grain handling and storage facilities in Champaign and Mansfield.