The Andersons Inc. has reported that its third-quarter profit rose 55 percent to $16.9 million, or 90 cents share, largely on the strength of its rail-car division, which achieved record quarterly operating income.
For the quarter, the Maumee-based agribusiness had revenues of $1.1 billion, up 17 percent from $939 million for the same quarter a year ago. The company’s quarterly profits a year ago were $10.9 million, or 59 cents a share. The Andersons reported its earnings on Monday.
The Andersons stock rose $2.01 to close at $41.85 on Tuesday.
“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 rail-car assets,” Mike Anderson, company chief executive officer, said.
“We also had good results in the Grain Group, although some of its income has been accelerated due to the early harvest.”
Mr. Anderson said the company’s expectations for the remainder of the year will be tempered by this past summer’s drought damage, which is expected to continue to impact the company’s grain and ethanol businesses through the first half of 2013.
The Rail Group’s quarterly operating income was $19.1 million on revenues of $60 million, up from $1.1 million in income and $24 million in revenues a year ago. The rail division recorded a $13.5 million gain on the sale of rail cars and related leases, and other transactions.
The Grain Group had operating income of $10.8 million, compared to $8.3 million a year ago. Its quarterly revenues were $677 million, up from $539 million a year ago.
Operating income for the Plant Nutrient Group decreased to $0.8 million from $6.6 million a year ago, while the Ethanol Group had an operating loss of $0.9 million, which compared with operating earnings of $4.4 million a year ago.
The Anderson’s Turf & Specialty Group also had an operating loss of $1.6 million, which compared to a loss of $1.2 million a year ago, while the Retail Group had an operating loss of $1.8 million, compared to a loss of $1.2 million in the third quarter of 2011.