The Andersons Swings to Profit

CEO Mike Anderson reaffirms full-year guidance.
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The Andersons

(ANDE) - Get Report

rose 4% late Wednesday after the grain processor swung to a third-quarter profit and reaffirmed full-year guidance.

The Maumee, Ohio, company made $8.4 million, or 51 cents a share, for the quarter ended Sept. 30, reversing the year-ago loss of $636,000, or 4 cents a share. Revenue rose to $336 million from $289 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a nickel-a-share profit on sales of $285 million.

The Grain & Ethanol Group's third-quarter operating income of $12 million reversed a year-ago loss, as group revenue rose to $209 million from $159 million a year earlier. Total grain gross profit for the period was significantly higher due to the sale of a large number of wheat bushels at excellent margins during the period and an appreciation in corn basis values.

"With our strong third-quarter income this year, one might conclude that our prospects for the full year had noticeably improved," said CEO Mike Anderson.

But, he added, "There are several variables which could still swing either way.

"Supply and demand dynamics in the grain markets, including rainfalls that have delayed the fall harvest, will impact fourth quarter income," Anderson said. "Accordingly, I believe that our previously-announced guidance of $1.90 to $2.10 for our 2006 full-year earnings per diluted share is still a reasonable expectation."

Shares rose $1.41 to $34.99.