MAUMEE, OHIO, U.S. — The Andersons, Inc. reported on Feb. 6 net income of $79.5 million, or $4.23 per share, for 2012, a decrease of 16% from 2011’s record earnings of $95.1 million or $5.09 per diluted share.
Revenues increased to $5.3 billion, compared to $4.6 billion in the prior year, due to rising volumes and prices, and growth in the agricultural businesses.
The company earned $15 million in the fourth quarter of 2012, or 80¢ per diluted share, on revenues of $1.7 billion. In the same three month period of 2011, the company reported net income of $21.7 million, or $1.17 per diluted share, on revenues of $1.3 billion.
The Grain Group's 2012 operating income was $63.6 million, compared to operating income of $87.3 million in the prior year. The group had considerably lower space income in 2012, as a result of the drought, but an increase in bushels sold. In 2011, the group benefited from significant escalation in wheat basis.
Lansing Trade Group contributed strongly to the Grain Group's result with its best ever annual performance. Total revenues for the Grain Group were $3.3 billion and $2.8 billion in 2012 and 2011, respectively. Revenues increased due to greater sales volume and higher grain prices.
For the fourth quarter, the group's operating income was $18.1 million on revenues of $1.2 billion. In the same three month period of 2011, the group had operating income of $27.3 million on revenues of $876 million. The group acquired the majority of the Green Plains Grain Company assets, on Dec. 3, 2012. The acquisition included seven facilities in Iowa and five in Tennessee, with grain storage capacity of approximately 32 million bushels. The Grain Group's storage capacity increased nearly 30%, and 30,000 tonnes of fertilizer storage was added as well.
The Ethanol Group had an operating loss of $3.7 million in 2012, compared to operating income of $23.3 million in the prior year. The operating income decline was due to significantly lower ethanol margins resulting from weak gasoline demand, an oversupply of ethanol, and high corn costs caused by last year's drought. The ethanol plants, however, continue to benefit from co-product sales of corn oil, E-85, distillers dried grains and CO2. The group's fourth quarter operating loss was $800,000 on revenues of $215 million. During the same three month period of 2011, operating income was $6.5 million on revenues of $165 million.
"This is definitely one of those years where our purposeful diversification paid off," said Chief Executive Officer Mike Anderson. "The Rail Group had its best year ever, due to skillful management of its railcar portfolio. Similarly, our Plant Nutrient Group had its second record year in a row even though margins decreased, as they increased sales volume and prudently managed their inventory. Our Grain Group also had good results, in part due to the record earnings of Lansing Trade Group, even though there were unfavorable impacts caused by the drought.
"In the last year we demonstrated our commitment to growth by acquiring New Eezy Grow, Inc., Denison, Mt. Pulaski, and the majority of the assets of the Green Plains Grain Company. We also opened our Anselmo, Nebraska grain elevator in August and look forward to opening a new railcar blast and paint facility this spring. As we have in the past, we will continue to focus on long term earnings growth."
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