MAUMEE, OHIO — Net income of The Andersons in the third quarter ended Sept. 30 was $16,884,000, equal to 91c per share on the common stock, up 55% from $10,925,000, or 59c per share, in the third quarter last year. Sales were $1,138,402,000, up 21% from $938,660,000.
The Grain Group’s operating income in the quarter was $10,807,000, up 30% from $8,313,000 in the third quarter last year. The company said Grain division results benefited from an early harvest, which resulted in higher gross profit on sales in comparison to the prior year’s third quarter.
Sales in the division rose 26% to $677,484,000 from $538,723,000. Revenues were driven by an increase in bushels sold, the company said.
The Andersons sustained a loss of $936,000 within its Ethanol division, which compared with operating income of $4,443,000 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 impacted significantly by lower ethanol margins resulting from increased corn costs and lower ethanol demand. Sales in the division rose 17% to $209,634,000 from $179,331,000.
“We had a great quarter, due in a large part to the exceptional results seen in our Rail Group, which has had record results every quarter this year due to skillful management of its railcar assets,” said Mike Anderson, chief executive officer. “We also had good results in the Grain Group, although some of its income has been accelerated due to the early harvest. The Grain Group’s performance was impacted by record Lansing Trade Group earnings. Our expectations for the remainder of the year still remain tempered by the drought, which will continue to impact our grain and ethanol businesses through the first half of 2013. Our recent acquisitions and capital expansions, however, will pay dividends in the future.
These include the acquisition of Mt. Pulaski Products, which was finalized last week, breaking ground on a new, state-of-the-art, railcar blast and paint facility, the recent opening of our Anselmo, Neb., grain elevator, and the previously mentioned Green Plains Grain Company, L.L.C. acquisition. We will effectively manage through the 2012 drought, as we have to date, and will continue our focus on long term earnings growth.”
For the nine months ended Sept. 30, overall net income was $64,490,000, or $3.47 per share, down 12% from $73,409,000, or $3.96 per share, in the same period a year ago. Net sales totaled $3,591,369,000, up 10% from $3,278,501,000.