The Andersons' Grain & Ethanol Group achieves $18.7m income for Q1 2011

In the US, agribusiness and ethanol company The Andersons has achieved record first quarter net income attributable to the company of $17.3 million (€12.3 million), or $0.93 per diluted share, on revenues of $1 billion. In the same three month period of 2010, the company reported results of $12.3 million, or $0.66 per diluted share, on $722 million of revenues.

During the quarter, the company re-evaluated its reportable segments which saw the Grain & Ethanol Group separated into two reportable segments; the Grain Division and the Ethanol Division.

Although the Grain Division led the company in first quarter income, the Plant Nutrient Group enjoyed the largest year to year increase in income. Continued good carry in the grain markets, particularly wheat, coupled with improved farm income opportunity created favourable fundamentals for our traditional agricultural businesses in the first quarter.

The Grain & Ethanol Group reported first quarter operating income of $18.7 million, which was just $2 million lower than its year earlier record result of $20.7 million. These results were led by the Grain Division. The division reported record operating income of $15.1 million in the first quarter of 2011, and $12.2 million for the same period of the prior year. The division benefitted from continued strong space income and record first quarter earnings from the investment in Lansing Trade Group. Revenues for the Grain Division were $638 million and $402 million for the first quarter of 2011 and 2010, respectively. Revenues increased significantly due to the climb in grain prices.

The Ethanol Division earned an operating income of $3.6 million in the first quarter. This compares to $8.5 million earned during the same period of the prior year. The decreased income is the result of a decline in the company's earnings from the ethanol LLC's, which have been negatively impacted by lower ethanol margins. Total revenues for the quarter were $133 million. In comparison, the division's revenues for the same period last year were $119 million.

'We are pleased to be able to report record first quarter earnings,' CEO Mike Anderson says. 'The investments made in our agricultural businesses over the last several years, including our investment in Lansing Trade Group, are paying off nicely in this very positive agricultural environment. It is also worth noting that the quarterly operating results for each of our non-agricultural businesses improved over the prior year result as well.'