MAUMEE, OHIO, U.S. — The Andersons, Inc. announced on May 7 first-quarter net income attributable to the company of $12.6 million, or 67¢ per diluted share, on revenues of $1.3 billion. In the same three month period of 2012, the company reported results of $18.4 million, or 98¢ per diluted share, on $1.1 billion of revenues.
The Grain Group reported first quarter operating income of $8.3 million in 2013 in comparison to $19.4 million for the same period of the prior year. The Grain Group had considerably lower space income this quarter as a result of the 2012 drought and market carry was much lower than the previous year. The group, however, benefited from record earnings from its investment in Lansing Trade Group. First quarter revenues for the Grain Group were $836 million and $700 million for 2013 and 2012, respectively. Revenues increased due to higher grain prices and greater sales volume, which resulted primarily from the addition of the former Green Plains Grain facilities.
"Our Rail Group continues to perform well, as they skillfully manage their railcar portfolio. We are pleased with the continued strong performance of Lansing Trade Group and improved margins in the ethanol business," Chief Executive Officer Mike Anderson stated. "The 2012 drought, however, continues to impact our profitability. As we have mentioned before, this will continue to impact our grain and ethanol businesses this year. While the Plant Nutrient Group was impacted by adverse weather in the first quarter, they should benefit from an anticipated record corn crop planting in the second quarter, as long as the weather cooperates.”
The Rail Group had record first quarter operating income of $14.6 million on revenues of $46 million. In the same three month period of 2012, the group earned $8 million and revenues were $36 million. The group's revenue and income benefited from higher lease rates and increased income from car financings. The group recognized $9.3 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions. In 2012, the company recognized gains of $6.3 million on similar transactions. The average utilization rate for the quarter was 84.6 percent in comparison to 85.7% for the same period last year. The rail fleet has increased by more than 500 cars during the past year to 23,508 cars.
The Ethanol Group had operating income of $2.5 million in the first quarter. This compares to $100,000 earned during the same period of 2012. The higher income is the result of improved ethanol margins and increased co-product income. The sale of co-products such as corn oil, E-85, Distillers Dried Grains and CO2 remains a focus of the group as it contributes to a more consistent income base. Total revenues for the quarter were $199 million. In comparison, the group's revenues for the same period last year were $151 million. The revenue increase is primarily due to the added volume from the Denison, Iowa plant, which was acquired in the second quarter of 2012.
The Plant Nutrient Group had an operating loss of $600,000 million during the first quarter on revenues of $112 million. In the same three month period of 2012, the group reported operating income of $5.8 million and revenues of $175 million. The lower revenue and income were primarily due to weather related delays in fieldwork that led to approximately a one-third decrease in volume; this volume has likely been shifted to the second quarter. Margins from year to year are down slightly due to a very slow start to the season and limited inventory price appreciation.
The Turf & Specialty Group achieved record operating income of $4 million on $47 million of revenues during the first quarter. Last year, the group reported $2.2 million of operating income on $45 million of revenues for the period. Margin for the lawn business increased; and the increase more than offsets the decrease in volume from the prior year first quarter. Process improvements made in the lawn business last year are resulting in operational efficiencies.
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