The Andersons, ANDE reports fouth quarter & full year results
Ethanol group operating loss of $3.7 million in 2012 from $23.3 million profit in 2011. Significant lower ethanol margins from weak gasoline demand, oversupply ethanol, and high corn costs caused by last years drought. 4th quarter operating loss 0.8 million on revenues $215 million, vs operating income of $6.5 million on revenues of $165 million in 4th quarter of 2011.
Ande is well diversified and showed strong operating profit in rails, you reinforced the theory if the main ingredient is too costly and tax subsidies have subsided somewhat its difficult to mfer and distribuite with no margins. Ethanol plants are counting on strong crop from Brazil and drought easing. In Ohio the land looks good and there has been plenty rain.