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The Andersons' agricultural businesses, including its grain elevators, heavily influenced its record profits for 2011. Higher prices for corn, soybeans, and other commodities were credited by firm leaders.
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Grain pushes Andersons to record profits

THE BLADE

Grain pushes Andersons to record profits

$95.1M for 2011 surpasses high of $69M reached in '07

A record year for its grain business netted the The Andersons Inc. a record profit of $95.1 million in 2011, the company reported Wednesday.

The Maumee-based agribusiness' profit, which equated to $5.09 a share, easily bested its previous record profit of $69 million set in 2007. It was a 47 percent increase over 2010, when it posted its then-second-best profit of $64.7 million, or $3.48 per share.

For the year, The Andersons revenues totaled $4.6 billion, a 35 percent increase over the $3.4 billion in revenues it had in 2010. The company's shares closed up $1.06 Wednesday to finish at $44.25 per share on the Nasdaq market.

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For the fourth quarter, the company reported a profit of $21.7 million, or $1.17 a share, down from $25.8 million, or $1.39 a share, for the same period a year earlier.

"Clearly, both our full-year and fourth-quarter earnings were heavily influenced by the results within our agricultural businesses. The record full-year earnings in both our grain and plant nutrient groups, and second-best year in the ethanol group, is gratifying," said Mike Anderson, the firm's chief executive. "Our 2011 rail group results improved significantly from the prior year as a result of improved economic conditions," he added.

The grain division's record operating income totaled $87.3 million. In 2010, its operating income was $64.4 million. The company said the growth in operating income was mainly because of higher grain prices in 2011.

Meanwhile, the company's ethanol group posted operating income of $23.3 million, which compared to $17 million a year earlier.

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The Andersons said it was able to increase operating income through higher earnings from the three ethanol plants in which it has invested. In 2011, ethanol prices rose, helping to push total revenues from the plants to $642 million, compared to $469 million in 2010.

The Andersons' plant nutrient group, like the grain group, had record operating income. The division's income totaled $38.3 million, compared to $30.1 million a year earlier, a result of higher nutrient prices.

The company's rail group had struggled in recent years because of the sluggish economy, but it rebounded in 2011 to post operating income of $9.8 million, compared to $100,000 in 2010.

The company said the increased income was because of higher uses of its rail car fleet and profitable lease rates. The average utilization rate for The Andersons' rail cars was 84.6 percent, compared to 73.6 percent in 2010.

The turf and specialty group showed a decline, while the retail group showed improvement although it posted a loss. Turf and specialty had operating income of $2 million, down from $3.4 million in 2010, while the retail unit had an operating loss of $1.5 million, which compared to a loss of $2.5 million in 2010.

Contact Jon Chavez at: jchavez@theblade.com or 419-724-6128.

First Published February 9, 2012, 4:59 a.m.

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The Andersons' agricultural businesses, including its grain elevators, heavily influenced its record profits for 2011. Higher prices for corn, soybeans, and other commodities were credited by firm leaders.  (THE BLADE)  Buy Image
The Andersons' retail group recorded an operating loss of $1.5 million in 2011, an improvement over a $2.5 million loss in 2010.  (THE BLADE)  Buy Image
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