MAUMEE, Ohio — The Andersons Inc. posted a 38 percent drop in second-quarter earnings due to lower profits on grain storage and a loss on ethanol production.
The Ohio-based agribusiness on Thursday reported net income of $28.47 million for the quarter that ended June 30, down from $46.04 million for the same quarter a year ago.
For shareholders, that equated to diluted earnings of $1.56 a share, down from $2.42 a share for the same quarter a year ago.
"We had a good quarter, although our expectations for the remainder of the year have been tempered by the drought conditions," CEO Mike Anderson said.
Though the ethanol group's results declined, he said The Andersons performed "much better in a down market than the general industry."
He also said the company's plant nutrient and rail groups both had higher operating income in the second quarter than a year ago.
Grain storage income was down this year, largely because last year's income from wheat storage was "extraordinary and likely not repeatable," Anderson said.
He said the ethanol group's operating loss stemmed from lower margins resulting from increased corn costs and lower ethanol demand.
The rail group achieved record operating income in the second quarter, partly due to increased income from the railcar repair business and higher gross profits from leasing.
The Andersons has grain terminals in Ohio, Michigan, Indiana, Illinois and Nebraska. Locally, the firm has grain handling and storage facilities in Champaign and Mansfield.