Grain News

The Andersons, Inc. Reports 2Q Net Income of $44.3 Million, Up From $29.5 Million in 2Q 2013

Date Posted: August 6, 2014

Maumee, OH—The Andersons, Inc. (Nasdaq: ANDE) Aug. 6 announced financial results for the second quarter ended June 30, 2014.

Full Andersons Report


• Record operating income of $33.9 million for the Ethanol Group

• Second quarter diluted EPS up almost 50 percent from same period last year

• Plant Nutrient Group had operating income of $25.0 million

CEO Comments

"We're pleased with our first half performance for 2014, which is a record," said CEO Mike Anderson.

"Both our Ethanol and Plant Nutrient groups had strong results this quarter.

"In fact, our Ethanol Group had the best quarter in its history.

"In addition, our Grain Group's operating income benefitted from improved space income in our grain operations, and the addition of income from the Thompsons Limited joint venture."

All financial and operating highlights below are quarterly data compared to the same period of the prior year, unless otherwise noted.

Financial Highlights

Second quarter net income attributable to the company was $44.3 million, or $1.56 per diluted share, on revenues of $1.3 billion.

In the same three month period of 2013, the company reported results of $29.5 million, or $1.05 per diluted share, on revenues of $1.6 billion.

• The Ethanol Group realized excellent margins at all plants. These margins were supported primarily by ongoing increases in export demand, lower corn prices and excellent operating metrics. The Ethanol Group had record E-85 sales and an increase in distillers dried grains and corn oil sales.

• The Plant Nutrient Group exceeded its prior year six-month earnings performance.

• The Rail Group recognized $2.5 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions during the quarter, which is approximately $2.4 million less than the prior year.

Operating Highlights

The following highlights have impacted reported results, or may impact future results:

• Crop conditions in the majority of our territories are ideal. Continued good weather provides the potential for record corn and soybean yields.

• The Ethanol Group had record ethanol production.

• At this time, we have approximately 75 percent of the third quarter and 33 percent of the fourth quarter ethanol futures risk hedged. The majority of those hedges were placed in the first quarter, consistent with our strategy to lock-in reasonable forward returns when available in the market. Other hedges were added in the second quarter, consistent with our risk management strategy. We currently are managing margins in the spot market for the rest of our production.

• Volume for the Plant Nutrient Group was up approximately six percent during the first half of the year, regaining all of the first quarter volume reduction. Further, gross profit per ton increased slightly.

• At the end of June, the Rail Group's utilization rate was 89.1 percent, up from 86.1 percent the prior year. Further, the utilization rate is expected to increase as the year progresses.

For more information, call 419-891-6483.

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