The Andersons Inc.
) reported fourth quarter EPS of $1.17, a 16% decline from $1.39
reported in the year-ago quarter but way ahead of the Zacks
Consensus Estimate of 97 cents.
Total revenue in the quarter was $1,298 million, up 12% from
$1,154 million in the prior-year quarter, outperforming the Zacks
Consensus Estimate of $1,280 million. The year-over-year
improvement was primarily driven by higher sales across the
company's segments besides price increases in the company's
Gross profit increased 5% year over year to $86.4 million
whereas gross margin dipped 40 basis points to 6.7%. Operating
income plunged 31% to $23.2 million from $33.8 million in the
year-ago quarter. Operating margin in the quarter was 1.8% compared
with 2.9% in the year-ago quarter.
Segment sales increased to $875 million from $784 million in the
year-earlier quarter. Operating income however dropped to $27.3
million from $35.6 million in the 2010 quarter.
The segment reported revenues of $165 million, up from $127 million
in the prior-year quarter due to higher ethanol prices. The
segment's operating income doubled to $6million.
Segment sales were $169 million versus $159 million in the
prior-year quarter. Operating profit was $2.4 million compared with
$8.9 million in the year-ago quarter.
The segment's sales increased to $25 million from $22 million in
the year-earlier quarter. The segment reported an operating income
of $2.3 million reversing the year-ago quarter's loss of $1.1
Turf & Specialty:
Total sales inched up 2% to $17.8 million from the year-ago
quarter. The segment reported an operating loss of $1.8 million
compared with a loss of $1.4 million in the year-earlier
Sales in the segment improved 5% to $45 million and the segment
reported an operating profit of $0.5 million compared with the
year-ago loss of $0.13 million.
Fiscal 2011 Performance
For fiscal 2011, Andersons reported a record EPS of $5.09, a 46%
year-over-year climb, ahead of the Zacks Consensus Estimate of
$4.92. Revenues clocked $4.576 billion, up 35% year over year but
falling short of the Zacks Consensus Estimate of $4.8 billion.
Escalating prices in the agricultural businesses were mainly
instrumental for the upside.
Cash and cash equivalents increased to $20.4 million as of
December 31, 2011, down from $29.2 million as of December 31, 2010.
Long-term debt stood at $238 million as of December 31, 2011
compared with $279 million as of June 30, 2011.
The majority of the company's revenues are derived from the
Grain & Ethanol group. Therefore, the company undertakes
constant efforts to upgrade the business and strengthen its market
position in the face of growing competition.
In 2011, the company added 1.7 million bushels of grain storage
capacity and began construction on a grain shuttle loader facility
in Nebraska. Andersons also acquired two businesses in the Plant
Nutrient Group - Immokalee Farmer Supply and New Eezy Gro
- which will help augment the customer base.
However, the impact of the generally weak economy on the
company's Retail group segment remains a concern. Not only is
Andersons witnessing a decline in the customer count, it is
generating lower average sales per customer, given the cuts in
discretionary spending. Stiff competition, especially from mass
merchandisers and do-it-yourself home centers, has also added to
the company's concerns.
Based in Maumee, Ohio, The Andersons, which has a Zacks #2 Rank
(Buy rating), is a diversified company operating in five different
business segments ranging from buying, selling and storing grain to
leasing railcars and running retail stores catering to the latest
home hardware needs. The company has operations across the U.S. and
in Puerto Rico, plus rail equipment leasing interests in Canada and
Andersons competes with
Archer Daniels Midland Company
) and privately held Cargill, Inc.
ARCHER DANIELS (
): Free Stock Analysis Report
ANDERSONS INC (
): Free Stock Analysis Report
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