The Andersons Reports First Quarter Results

The Andersons, Inc. has announced record first quarter net income attributable to the company of $17.3 million, or $0.93 per diluted share, on revenues of $1.0 billion. In the same three-month period of 2010, the company reported results of $12.3 million, or $0.66 per diluted share, on $722 million of revenues.

The Andersons is ranked No. 27 on the CropLife 100 list of the largest ag retailers in the U.S.

During the quarter, the company re-evaluated its reportable segments. As a result, the Grain & Ethanol Group was separated into two reportable segments, specifically the Grain Division and the Ethanol Division. The company’s investment in Lansing Trade Group is included in the Grain Division. Segment information for earlier periods has been restated for comparability purposes.

Although the Grain Division led the company in first quarter income, the Plant Nutrient Group enjoyed the largest year to year increase in income. Continued good carry in the grain markets, particularly wheat, coupled with improved farm income opportunity created favorable fundamentals for our traditional agricultural businesses in the first quarter. Increased demand for U.S. exports of grains and other agricultural products to feed an ever growing world population along with the U.S. corn based ethanol demand continues to create positive agriculture fundamentals.

The Grain & Ethanol Group reported first quarter operating income of $18.7 million, which was just $2.0 million lower than its year earlier record result of $20.7 million. These results were led by the Grain Division. The division reported record operating income of $15.1 million in the first quarter of 2011, and $12.2 million for the same period of the prior year. The division benefited from continued strong space income and record first quarter earnings from the investment in Lansing Trade Group. Revenues for the Grain Division were $638 million and $402 million for the first quarter of 2011 and 2010, respectively. Revenues increased significantly due to the overall climb in grain prices.

The Ethanol Division earned an operating income of $3.6 million in the first quarter. This compares to $8.5 million earned during the same period of the prior year. The decreased income is the result of a decline in the company’s earnings from the ethanol LLC’s, which have been negatively impacted by lower ethanol margins. Total revenues for the quarter were $133 million. In comparison, the division’s revenues for the same period last year were $119 million.

The Plant Nutrient Group achieved operating income of $5.1 million during the first quarter. In the same three month period of 2010, the group reported $0.7 million of operating income. This improved performance was due entirely to an increase in margin. Volume was virtually unchanged from the prior year. The margin improvement is primarily the result of the lagging effect of price escalation in the second half of 2010. Revenues for the first quarter of 2011 and 2010 were $124 million and $103 million, respectively. Revenues grew due to an increase in the average selling price per ton.

The Rail Group had an operating income of $3.5 million in the first quarter on revenues of $29 million. In the same three month period of 2010, the group earned $1.0 million and revenues were $27 million. This quarter, the group recognized $4.8 million in gains on sales of railcars and related leases, whereas last year $2.6 million was recorded. Gross profit from the leasing business was lower due primarily to lower average lease rates, decreased end of lease income, and increased maintenance expense incurred when preparing cars to return to service. The average utilization rate for the quarter was 82 percent in comparison to 70 percent for the same period last year.

The Turf & Specialty Group earned operating income of $3.3 million on $47 million of revenues during the first quarter. Last year, the group reported $2.7 million of income on $42 million of revenues for the period. Turf products tonnage was up from the prior year, however, margin per ton decreased slightly due to changing product mix.

The Retail Group had an operating loss of $2.7 million during the first quarter on revenues of $31 million. During the same period of the prior year the group had a loss of $2.8 million, and total revenues were $30 million.

In the prior year, the company recorded a one time adjustment to increase income tax expense by $1.5 million, as a result of the Patient Protection and Affordable Care Act, signed into law during the first quarter of 2010. This adjustment had an earnings per share impact of $0.09 on the 2010 first quarter results.

“We are pleased to be able to report record first quarter earnings,” CEO Mike Anderson stated. “The investments made in our agricultural businesses over the last several years, including our investment in Lansing Trade Group, are paying off nicely in this very positive agricultural environment. It is also worth noting that the quarterly operating results for each of our non- agricultural businesses improved over the prior year result as well,” added Anderson.

(Source: Ohio Ag Connection)

Leave a Reply

CropLife 100 Stories

Greg Musson, Gar Tootelian
CropLife 100California Ag Retailer Steps Up To Feed Families Affected By Drought
September 16, 2016
GAR Tootelian, Inc. (GAR) in Reedley, CA, is challenging the Central Valley to help raise enough money and provide 525,000 meals Read More
Wilbur-Ellis Sedgwick Grand opening 2015
CropLife 100Wilbur-Ellis Receives ResponsibleAg Certification At Sedgwick Location
September 9, 2016
Wilbur-Ellis Co., a recognized leader in precision agriculture technology and the distribution of crop protection products, announces the ResponsibleAg certification Read More
Growmark FS Outlet
CropLife 100GROWMARK To Build New Fertilizer Facility In Ayr, Ontario
August 31, 2016
GROWMARK announced plans Wednesday to build a new state-of-the-art fertilizer facility in Ayr, Ontario. It will be managed by FS Read More
CHS St. Paul, MN fertilizer terminal
CropLife 100CHS Completes $10 Million Renovation Of St. Paul Agronomy Fertilizer Terminal
August 29, 2016
CHS Inc., North America’s leading farmer-owned cooperative and a global energy, grains and foods company, has completed a $10 million Read More
Trending Articles
Corn Field
Eric SfiligojFacing Ag Industry Challenges
September 26, 2016
At the 2016 annual Mid America CropLife Association (MACA) meeting in September, a pair of crop protection company representatives discussed Read More
Bayer Monsanto
Crop InputsBayer-Monsanto Mega-Merger: 6 Things You Need To Know
September 14, 2016
Mega mergers have become almost routine in the agricultural industry. Right on the heels of Monday’s news that fertilizer giants Potash Read More
Potash Corp Agrium
Crop InputsAgrium, Potash Corp To Merge To Create $36 Billion Company
September 12, 2016
Canada’s Agrium Inc. and Potash Corp of Saskatchewan Inc. have agreed to combine in a deal that would create a Read More
Osage Co-op Elevator Osage, IA Finished Building
OpinionAre We Crazy?
September 8, 2016
At some point in the first few months of my employment here at CropLife® magazine, I started getting curious about Read More
ManagementMAGIE 2016 Highlights and Deere Anti-Trust
September 1, 2016
CropLife Editor Eric Sfiligoj discusses the recent Midwest AG Industries Exposition and the Department of Justice’s objection to John Deere Read More
ASMARK 2016 Retailers Live! Tour - CPS
CropLife 100CPS Acquires Texas Retail Operation
August 23, 2016
Crop Production Services (CPS) has acquired the assets of Larry’s Chemical and Spray, Inc., for an undisclosed amount in an Read More
Latest News
Young Corn Field
StewardshipStudy: Ohio Farmers Doing ‘A Good Job Of Managing…
September 27, 2016
Leaders from Ohio’s largest grain farming organizations announced today that Ohio farmers are doing their part in effectively managing phosphorus Read More
Growmark FS Outlet
Industry NewsGROWMARK To Purchase Suncor’s Share Of UPI
September 26, 2016
GROWMARK and Suncor have reached an agreement in which GROWMARK will purchase Suncor’s 50% interest in UPI, Inc. in Ontario, Read More
Corn Field
Eric SfiligojFacing Ag Industry Challenges
September 26, 2016
At the 2016 annual Mid America CropLife Association (MACA) meeting in September, a pair of crop protection company representatives discussed Read More
Syngenta Seedcare Institute
Seed/BiotechSyngenta Opens New North America Seedcare Institute In …
September 23, 2016
Syngenta unveiled its new Seedcare Institute in Stanton, MN, during a recent grand opening celebration. More than 150 industry leaders, Read More
StewardshipMonsanto Invests $1.6 Million In System To Quantify Gre…
September 23, 2016
The USDA – Natural Resources Conservation Service (USDA-NRCS) recently awarded the National Corn Growers Association (NCGA) and its Soil Health Read More
Pipe rack
LegislationCourt Sides With Ag Retailers On PSM
September 23, 2016
The D.C. Court of Appeals has ruled the Occupational Safety and Health Administration violated the Occupational Safety and Health Act when Read More
ManagementPacific Coast Fertilizer Announces Interest In Longview…
September 22, 2016
Pacific Coast Fertilizer LP (PCF) announced at the Cowlitz Economic Development Council board of directors meeting its interest in developing Read More
Young corn plants in soil
UncategorizedCool Planet Raises Additional $9 Million To Commerciali…
September 22, 2016
Cool Planet has announced the first close of a new financing round to commercialize the company’s Cool Terra Engineered Biocarbon Read More
Crop InputsJim Loar Promoted To President And CEO Of Cool Planet
September 22, 2016
In a move that reflects and reinforces the company’s commitment to the agricultural market, the Cool Planet board of directors Read More
BlendersNorth Dakota Coop Debuts Dry Fertilizer Plant
September 22, 2016
North Central Grain Cooperative has begun operations at a new dry fertilizer plant at its Rolla, ND, site. It is Read More
Crop InputsMonsanto, Bayer Officials Defend Proposed $66 Billion M…
September 21, 2016
Top officials for Monsanto and Bayer defended their proposed $66 billion merger before skeptical senators on Tuesday, insisting that the Read More
ManagementUpcoming Shows & Recent Events
September 19, 2016
Editors Paul Schrimpf and Eric Sfiligoj talk about upcoming trade shows and events and review the Mid America CropLife Association Read More
Industry NewsVerdesian Life Sciences Appoints New CEO
September 19, 2016
Verdesian Life Sciences, a plant health and nutrition company, today announced that its board of directors has named Kenneth M. Avery Read More
Corn
Crop InputsEPA Settles With Syngenta For Alleged Multi-Regional Pe…
September 19, 2016
The U.S. EPA has announced a multi-region settlement with Syngenta Crop Protection, LLC (Syngenta) in Greensboro, NC, for alleged violations of Read More
ManagementMerger Mania
September 16, 2016
Editors Paul Schrimpf and Eric Sfiligoj discuss this week’s mega-ag mergers of Bayer and Monsanto and Potash and Agrium. Read More
Monsanto sign
Crop InputsMonsanto Ends Up Being A Bargain For Bayer
September 16, 2016
History will say Bayer got a bargain in its $66 billion purchase of Monsanto, writes David Nicklaus, St. Louis Post-Dispatch. The Read More
Greg Musson, Gar Tootelian
CropLife 100California Ag Retailer Steps Up To Feed Families Affect…
September 16, 2016
GAR Tootelian, Inc. (GAR) in Reedley, CA, is challenging the Central Valley to help raise enough money and provide 525,000 meals Read More
Crop InputsBayer, Monsanto CEOs Discuss Merger
September 15, 2016
Werner Baumann, Bayer CEO, and Hugh Grant, Monsanto CEO, discuss why they decided to merge their companies. Read More