MAUMEE, Ohio — The Andersons Inc. announced second quarter net income attributable to the company of $15.9 million, or $0.87 per diluted share, on revenues of $811 million.
In the same three month period of 2008, the company reported record results of $45.6 million, or $2.48 per diluted share, on $1.1 billion of revenues.
For the first six months of 2009, the company earned $20.9 million, or $1.14 per diluted share, on revenues of $1.5 billion.
In the first half of 2008, The Andersons reported record results of $53.4 million, or $2.90 per diluted share, on revenues of $1.8 billion.
It should be noted that the earnings from the prior year included unprecedented margins in the Plant Nutrient Group that accounted for nearly two-thirds of the income.
Grain and Ethanol Group
The Grain and Ethanol Group’s operating income of $8.9 million in the second quarter was significantly less than its year earlier result of $20 million.
The grain business had its third best second quarter as it benefited from good space income. The ethanol business was profitable during the second quarter of 2009.
When compared to the prior year; however, income from the ethanol business was down considerably in the second quarter as last year the business benefited from margins being locked in before the ethanol industry decline.
Rail Group
The Rail Group’s operating income was $0.6 million in the second quarter of 2009, which is down significantly from the $4.9 million earned during the same three month period a year ago.
The group continues to be impacted by the double digit declines in rail traffic. The group now has approximately 23,800 cars and locomotives.
The average utilization rate (the percentage of the fleet in service) for the quarter was 80.6 percent in comparison to 93.3 percent for the same period last year.
Plant Nutrient Group
The Plant Nutrient Group had an operating income of $10.3 million during the second quarter of 2009, on revenues of $198 million.
In the same three month period of 2008, the group achieved record operating income of $47.4 million, on revenues of $274 million.
Margins were down significantly from the prior year. Margins were significantly lower as basic nutrient prices deflated in 2009, whereas in 2008 margins greatly increased as nutrient prices inflated.
Retailers
Retailers reducing their nutrient inventory holdings, and lower application rates of basic nutrients (potash, potassium and to a lesser degree nitrogen), led to reduced sales volume this quarter.
The group’s first half operating income this year was $12.4 million on $309 million of revenues.
Last year, its operating income through the first six months was a record $54.9 million on revenues of $379 million.
Hartung Brothers Inc.
The group acquired Hartung Brothers Inc.’s Fertilizer Division Aug. 1. Hartung Brothers Inc. is a regional wholesale supplier of liquid fertilizers with five locations in Wisconsin and one in southeastern Minnesota.
This acquisition will allow the group to expand its value added product offering, grow its wholesale customer base, and broaden its geographic territory.
The Turf and Specialty Group had a record operating income of $3 million in the second quarter this year on $40 million of revenues.
Last year, the group reported $1.9 million of income on $36 million of revenues for the period.
The Retail Group reported revenues of $49 million for the second quarter of 2009, which is below the $53 million in revenues reported for the same period in 2008.
The group earned operating income of $2.9 million in the second quarter of 2009.
In the comparable period last year, the group’s operating income was $3.4 million.
Both the group’s margins and customer counts have improved slightly; however, this was offset by a decline in the average sale per customer.
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