Andersons shares fall on weak 3Q profit
MAUMEE, Ohio (AP) - The Andersons Inc., a diversified
agricultural and transportation company, said Wednesday that its
third-quarter profit fell 90 percent as fertilizer retailers kept
inventories lean and its rail group suffered from double-digit
declines in rail traffic amid the economic slump.
The company earned almost $1.3 million, or 7 cents per share,
for the quarter that ended Sept. 30, down sharply from $12.8
million, or 70 cents per share, during the same period last year.
Revenue tumbled 34 percent to $601 million, from $905.7 million a
year earlier.
Analysts surveyed by Thomson Reuters had been expecting a much
higher profit of 37 cents per share on revenue of $691.6 million.
NASDAQ:ANDE Updated: 16:00 ET 27.64 -1.20 |
Andersons shares fell $2.48, or 8.3 percent, to $27.51 in
after-hours trading. Before the results were released the shares
had fallen 6 percent to close at $29.99.
The company's plant nutrient group lost $2.8 million in the most
recent quarter on revenue of $70 million, compared with a
year-earlier profit of $7.2 million on revenue of $162 million.
Andersons said margins were down significantly from high levels in
the 2008 period, and retailers continue to maintain lower inventory
holdings that drove down sales volume.
Andersons' grain and ethanol group's operating income slipped to
$8.9 million from $9.4 million a year ago as commodity prices
returned closer to historical levels from last year's highs. Its
rail group lost $1.1 million, versus a year-sgo $5.2 million
profit, as the economic downturn drove double-digit declines in
freight traffic. The percentage of its fleet of about 24,000 cars
and locomotives that was in service during the quarter tumbled to
74.4 percent from 93.3 percent last year.
The company said its retail division continues to be impacted by
lower customer traffic and spending, although profit margins have
remained consistent year-over-year.
11/04/09 19:12
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