Press Releases

MAUMEE, Ohio, May 7, 2014 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) announced first quarter net income attributable to the company of $22.7 million, or $0.80 per diluted share, on revenues of $1.0 billion. In the same three month period of 2013, the company reported results of $12.6 million, or $0.45 per diluted share, on $1.3 billion of revenues.

The Ethanol Group achieved record operating income of $19.8 million in the first quarter. This compares to $2.5 million earned during the same period of 2013. The higher income is primarily due to improved performance of the ethanol limited liability company investments, which benefited from strong ethanol margins. Ethanol margins during the first quarter were impacted by low U.S. ethanol stocks, accompanied by improving domestic and export demand. The Ethanol Group also benefitted from improved production rates, ongoing service fees, and increased co-product sales of corn oil, E-85, and distillers dried grains. Total revenues for the quarter were $189 million. In comparison, the group's revenues for the same period last year were $199 million.

The Rail Group had record first quarter operating income of $15.0 million on revenues of $52 million. In the same three month period of 2013, the group earned $14.6 million and revenues were $46 million. The group's revenue and income benefited from higher lease rates and increased income from car sales. The group recognized $10.8 million in pre-tax gains on sales of railcars and related leases and non-recourse transactions in the first quarter, which is approximately $1.0 million more than the prior year. The average utilization rate for the quarter was 88.4 percent in comparison to 84.6 percent for the same period last year.

The Grain Group reported first quarter operating income of $11.3 million in comparison to $8.3 million for the same period of the prior year. Included in this year's results is a pre-tax gain of $17.1 million from the partial sale of its Lansing Trade Group holdings. At the time of the sale the group reduced its ownership percentage, on a fully diluted basis, to approximately 39.2 percent, whereas previously it held approximately a 47.5 percent ownership interest in Lansing. The Grain Group's earnings from operations were a loss this quarter due in part to significantly lower space income, which was the result of less carry in the corn market and significantly reduced wheat inventory. The group's earnings from its equity investments were also significantly reduced. First quarter revenues for the Grain Group were $583 million and $836 million for 2014 and 2013, respectively. Revenues decreased primarily due to lower grain prices, which decreased almost 30 percent.

The Plant Nutrient Group had an operating loss of $1.4 million during the first quarter on revenues of $108 million. In the same three month period of 2013, the group reported an operating loss of $0.6 million and revenues of $112 million. The first quarter results were lower than anticipated due to weather related delays in fieldwork; it appears much of this volume will shift to the second quarter. Margins from year to year are down slightly due to a slow start to the season.

The Turf & Specialty Group had operating income of $1.4 million on $44 million of revenues during the first quarter. Last year, the group reported $4.0 million of operating income on $47 million of revenues for the period.

The Retail Group had an operating loss of $2.3 million during the first quarter on revenues of $28 million. In the prior year, the group's operating loss for the same three month period was $3.2 million, and revenues were $31 million.

"The superior results seen last year in both our Ethanol and Rail groups have continued into the first quarter. The Ethanol Group worked diligently to increase its production in the first quarter when other ethanol plants were forced to reduce production. This effort allowed our ethanol team to fully capitalize on the strong margins in the market. Our Rail Group continued to perform well, working to increase both lease and utilization rates over time," CEO Mike Anderson stated. "The Grain Group, however, had a difficult quarter. Anticipated returns on stored grain inventories simply did not materialize in the quarter. While the Plant Nutrient Group was impacted by adverse weather in the first quarter, it should benefit from an anticipated significant corn crop planting in the second quarter, as long as the weather cooperates," added Mr. Anderson.

The company will host a webcast on Thursday, May 8, 2014 at 11:00 A.M. ET, to discuss its performance. This can be accessed under the heading "Investor" on its website at www.andersonsinc.com.

The Andersons, Inc. is a diversified company rooted in agriculture. Founded in Maumee, Ohio, in 1947, the company conducts business across North America in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing.

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, and the risk factors set forth from time to time in the Company's filings with the Securities and Exchange Commission. Although the Company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

The Andersons, Inc. is located on the Internet at www.andersonsinc.com

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SOURCE The Andersons, Inc.

Nick Conrad, Phone: 419-891-6415, E-mail: nick_conrad@andersonsinc.com