The Andersons Reports Third Quarter Loss on Declines in Grain Group
On November 4, The Andersons reported third quarter losses of $1.2 million, or four cents per share, compared to earnings of $16.8 million, or 59 cents per share in the same quarter a year before. Revenues fell 2% to $935.8 million from $952.9 million year on year for the quarter, and the Grain Group earned $131,000, representing a decline of 98.9% from $12,449,000 in the same quarter a year earlier. The company states that the significant decline is attributed to a drop in its core grain business results and a sizeable drop in equity earnings.
The poor performance in its Grain Group was offset by the performance of its Rail Group, which reported earnings of $11.9 million – a large jump from earnings of $4.2 million in the same quarter a year before, due to higher lease and utilization rates. The company’s Ethanol Group also reported positive results despite tight margins due to increased throughput and processing improvements made by the company. The Ethanol Group earned $5,888,000 – a 72% drop from $21,253,000 in the same quarter a earlier, but saw record ethanol production volumes.
The group’s Plant Nutrient Group posted a net loss of $11.1 million for the third quarter, compared to a net loss of $3 million a year before, but this performance included a $4.5 million negative impact having to do with recent acquisitions, and a further $2 million goodwill impairment charge in the Cob business.