Led by its Grain and Ethanol divisions, The Andersons Inc. on Wednesday reported a third-quarter profit of $17.2 million, or 91 cents a share, a 2 percent increase over the same period a year ago when the company had profits of $16.9 million, or 90 cents a share.
The Maumee agribusiness said revenues for the quarter totaled $1.2 billion, up slightly from $1.1 billion in the same period a year ago. The company’s stock, which trades on Nasdaq, closed at $76.31 Wednesday, down 54 cents a share.
“We had a record third quarter, due to the exceptional results seen in our Ethanol and Rail groups,” Mike Anderson, the company’s chief executive officer, said. “Our expectation for the last quarter of the year is that it will be comparable to results seen in 2010 and 2011. The fourth quarter of 2012 results were tempered by the drought, which we are happy to say is behind us; we are instead in the midst of a record corn crop,” he added.
For the quarter, the Grain Group had operating income of $14.3 million, compared to $10.8 million a year ago. The company said its grain revenues were higher because of an increase in the bushels it sold even as the price per bushel actually decreased.
The Ethanol Group had record operating income of $10.9 million, compared to a loss of $900,000 a year ago. The increased income was because of a rise in earnings from The Andersons’ investments in the company’s ethanol production facilities, which benefited from higher profit margins. The facilities are experiencing higher income because of an increased number of ethanol by-products that are being produced and sold, such as corn oil, distillers’ dried grains, E-85 fuel, and carbon dioxide gas.
Meanwhile, the company said its Rail Group had operating income of $12.4 million, a drop from the same period a year ago, when it was $19.1 million. The income fell because of lower gains on sales of rail cars. In the third quarter, sales were $2.2 million; a year ago, they totaled $13.5 million.