MAUMEE, OHIO — Net income of The Andersons in the second quarter ended June 30 was $29,199,000, equal to $1.57 per share on the common stock, down 35% from $45,218,000, or $2.44 per share, in the second quarter last year. Sales were $1,315,834,000, down 2% from $1,338,167,000.
The Grain Group’s operating income in the quarter was $15,277,000, down 58% from $36,541,000 in the second quarter last year. The Grain division results were driven by a return to more normal space income.
The Andersons said wheat space income in the second quarter of the previous year “was extraordinary” and the company did not expect to repeat it. Sales in the division fell 10% to $718,911,000 from $797,130,000.
The Andersons sustained a loss of $2,105,000 within its Ethanol division, which compared with operating income of $8,830,000 in the same period a year ago. The loss was attributed to a decrease in the company’s earnings from its ethanol investment affiliates, whose income was significantly impacted by lower ethanol margins resulting from increased corn costs and lower ethanol demand. Sales in the division rose 2% to $167,758,000 from $164,704,000.
“We had a good quarter, although our expectations for the remainder of the year have been tempered by the drought conditions currently being experienced, which will certainly impact our grain and ethanol businesses,” said Mike Anderson, chief executive officer. “Although the results of our Ethanol group have declined, given the current ethanol margin environment, we feel the results demonstrate that our business structure, including co-products, services, and equity partners, perform much better in a down market than the general industry.”
For the six months ended June 30, overall net income was $47,606,000, or $2.56 per share, down 24% from $62,484,000, or $3.37 per share, in the same period a year ago. Net sales totaled $2,452,967,000, up 5% from $2,339,841,000.