World Grain - June 2012 - 16

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The Andersons reaches first-quarter record on grain results
MAUMEE, OHIO, U.S. — The Andersons, Inc. announced on May 7 record ﬁrst-quarter net income attributable to the company of $18.4 million, or 98¢ per diluted share, on revenues of $1.1 billion. In the same three-month period of 2011, the company reported results of $17.3 million, or 93¢ per diluted share, on $1 billion of revenues. The Grain Group reported record ﬁrst-quarter operating income of $19.4 million in 2012, and $15.1 million for the same period of the prior year. The group beneﬁted from strong space income and very good ﬁrst-quarter earnings from the investment in Lansing Trade Group. First-quarter revenues for the group were $700 million and $638 million for 2012 and 2011, respectively. Revenues increased due to a slight increase in both the average grain price and bushels sold. The Ethanol Group had operating income of $100,000 in the ﬁrst quarter. This compares to $3.6 million earned during the same period of 2011. The decreased income is the result of a decline in the company’s earnings from its ethanol investment afﬁliates, whose income was negatively impacted by lower ethanol margins resulting from increased industry production and lower demand led by declining exports. There was, however, increased income from corn oil, E-85, and CO2. Total revenues for the quarter were $151 million. In comparison, the group’s revenues for the same period last year were $133 million. The revenue increase is primarily due to an increase in the average price per gallon. “Our agricultural businesses continue to perform well. Although we will not see the same wheat basis gains we did last year, we are pleased with the year-to-date corn planting progress, on what is expected to be an approximate 96-million-acre crop. It is also gratifying to report record earnings in our Rail Group, which struggled for a few years during the economic downturn,” said Chief Executive Ofﬁcer Mike Anderson.

Noble’s ag income drops 63% in first-quarter
HONG KONG, CHINA — Noble Group Ltd. reported on May 10 that operating income from its agriculture division in the ﬁrst quarter dropped 63% to $47.3 million. Noble said it expects the segment’s performance to strengthen further into 2012 since its Brazilian sugar mills will move into the post-harvest production season. Overall net proﬁt for the company was down 46% to $110 million, compared to $203 million a year ago, which included a one-time gain from the sale of Noble’s ﬂeet management business. “The efforts that we have expended in recent years in getting into new businesses and new markets are starting to pay off and we look forward to extracting value from these initiatives under our new CEO, Yusuf Alireza,” said Noble’s founder and chairman, Richard Elman.

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World Grain - June 2012

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