MAUMEE, OHIO, U.S. — The Andersons, Inc. announced on Feb. 11 that net income attributable to the company in 2013 increased to $89.9 million, or $3.18 per diluted share, from $79.5 million, or $2.82 per diluted share, in the previous year.
Revenues in 2013 were $5.6 billion, compared to $5.3 billion in the previous year.
The Andersons said it should be noted that all prior period per share data in this release has been adjusted to reflect the company’s February 2014 three-for-two stock split.
The company earned $30.7 million in the fourth quarter of 2013, or $1.08 per diluted share, on revenues of $1.6 billion. In the same three month period of 2012, the company reported net income of $15 million, or $0.53 per diluted share, on revenues of $1.7 billion.
The Grain Group’s 2013 operating income was $46.8 million, compared to $63.6 million in the prior year. The group had considerably lower space income in 2013, as a result of the drought, but increased gross profit on sales, primarily due to growth.
Lansing Trade Group contributed significantly to the Grain Group’s result. Total revenues for the Grain Group were $3.6 billion and $3.3 billion in 2013 and 2012, respectively. Revenues increased due to greater sales volume, as average grain prices actually declined. For the fourth quarter, the group’s operating income was $22.1 million on revenues of $1.1 billion. In the same three month period of 2012, the group had operating income of $18.1 million on revenues of $1.2 billion. Both space income and gross profit on sales in the fourth quarter were higher than the prior year.
The Ethanol Group had record operating income of $50.6 million in 2013, compared to a loss of $3.7 million in the prior year. The significant increase in operating income was primarily due to higher ethanol margins, which were impacted by solid ethanol export demand, and lower corn costs.
The ethanol plants also benefitted from improved production rates and increased co-product sales of corn oil, E-85 and distillers dried grains. Total 2013 revenues were $832 million, up from $743 million in 2012. The revenue increase was due to both a full year of production at the Denison, Iowa, U.S., plant and an increase in the average price of ethanol.
The group’s fourth quarter results were a record not only for the fourth quarter, but for any quarter. The operating income was $26.6 million on revenues of $197 million. During the same three month period of 2012, a loss of $0.8 million was incurred on revenues of $215 million.
The Rail Group achieved operating income of $42.8 million both this year and last year. Gross profit from the leasing business was significantly higher than the prior year due to higher lease and utilization rates. The full year utilization rate increased 1.5% in 2013 to 86.1%, and utilization ended the year at 88.3%.
The group recognized $19.4 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions. In 2012, the company recognized gains of $23.7 million on similar transactions. Revenues of $165 million for 2013 were higher than the $156 million reported in the prior year. The Rail Group had operating income of $6.2 million in the fourth quarter on revenues of $32 million. In 2012, operating income for the same three month period was $8.6 million on revenues of $29 million. The prior year fourth quarter results included a $2.8 million lease settlement.
The Plant Nutrient Group finished the year with operating income of $27.3 million on revenues of $709 million. In 2012, the group’s operating income was $39.3 million and revenues were $797 million. Margins and volume in 2013 were lower than the prior year due to flat to declining markets, but were still solid. For the fourth quarter, the group’s operating income was $6.2 million on $171 million of revenues as many nutrient prices reset and they experienced a good fall season. Last year the group had operating income of $4.7 million during the same three month period on revenues of $178 million.
“I am proud of our 2013 results and the team we have here at The Andersons,” said Chief Executive Officer Mike Anderson. “The Ethanol Group had exceptional results; they worked to simultaneously optimize margins, yields, production rates and co-product sales. Quite simply, the Ethanol Group hit the ball out of the park. The Rail Group nearly matched its record income from last year, even with a $4.3 million decrease in gains on railcar sales. Despite the unfavorable impacts of the 2012 drought, the Grain Group had good results, in part due to the strong earnings of Lansing Trade Group.
“The Plant Nutrient Group also had good results, as they managed through the nutrient price reset well. Lastly our Turf & Specialty Group had a record year as they continued to focus on their proprietary product strategy. In the last year we have demonstrated our continuing commitment to growth. We acquired Thompsons Limited through a 50/50 joint venture with Lansing Trade Group, which expanded our territory into Canada. We also expanded our railcar repair business through both the acquisition of Mile Rail and the opening of the Maumee paint facility. Lastly, as mentioned earlier, we acquired the assets of the Cycle Group at the end of 2013.”
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