Milling & Baking News - February 27, 2007 - 54

F I N A N C I A L

New ethanol business boosts
income at The Andersons
MAUMEE, OHIO - Net income of
The Andersons, Inc. in the year ended
Dec. 31, 2006, was $36,347,000, equal to
$2.27 per share on the common stock,
an increase of 39% from $26,087,000, or
$1.76, in 2005. Net revenue for the year
totaled $1,458,053,000, up 12% from
$1,296,949,000 in 2005.
Fourth-quarter net income in 2006
fell 10% to $13,778,000, or 78c per share,
from $15,336,000, or $1.03, in the fourth
quarter of 2005. Total revenues for the
fourth quarter were $463,415,000, up
21% from $384,421,000 in the same period last year.
The Grain and Ethanol Group's fullyear operating income of $27.9 million
in 2006 established a new record, $15.3
million higher than the $12.6 million it
achieved in 2005, the group's previous
best full-year performance. Operating
income of $12.3 million in the fourth
quarter of 2006 was below the $14.8 million the group generated a year earlier.
The number of grain bushels delivered
to The Andersons' elevators increased
slightly this year. Total grain gross prof-

it and operating income also improved
for the year, despite reduced earnings
from grain storage attributable in part to
higher interest costs.
The group's emerging ethanol business
continued to register
income growth during the most recent
quarter. The group's Albion, Mich.,
ethanol plant, in which The Andersons,
Inc. is a significant investor, began production during the third quarter and
shipped ethanol and distillers dried
grain to customers throughout the
fourth quarter of 2006.
Construction of its Clymers, Ind.,
plant, in which the company also is a
significant investor, is progressing well
and is scheduled to start producing ethanol early in the second quarter of 2007.
Recently, construction also began on a
Greenville, Ohio, plant, which is expected to begin operations in early 2008.
The group's investment in Lansing
Trade Group, L.L.C. exceeded its 2005
fourth-quarter income in the most recent

Weston Foods operating income
rises 6% in fiscal year 2006
TORONTO - Improved sales growth,
primarily due to price increases in key
product categories, combined with
changes in sales mix to help boost fiscal 2006 operating income 6% to C$256

With an

million ($219 million) at Weston Foods.
Adjusted operating income, which included C$46 million in restructuring
charges, including C$26 million in employee termination benefits and other

R E S U L T S

three-month period and achieved significant income growth for the full year.
"We've been making a lot of changes
throughout the company during the
past two years, and they're showing
some very positive results," said Mike
Anderson, president
and chief executive
officer. "Our strategic
decision to enter the
ethanol business is
definitely having an
impact, as is our continued growth in
rail, our investment in Lansing Trade
Group, restructuring in Turf and Specialty, and other process improvements
throughout the company.
"As a result, in spite of the really
tough market realities encountered by
our Plant Nutrient Group this year, we
beat our previous net income record by
39%. This successful growth benefits
all of our constituents - our customers, our employees, our communities,
and of course, our shareholders. With
the Clymers, Ind., ethanol plant scheduled to begin production two months
from now, and continued growth in
our rail business, we look forward
to continued positive progress in the
coming year." MBN
exit related costs, C$19 million of fixed
asset impairment and accelerated depreciation and a loss of C$1 million on
the sale of fixed assets, totaled C$325
million for the year, up 8%.
Net sales in the year ended Dec.
31, 2006, were C$4.4 billion ($3.77
billion), down 0.6% from fiscal 2005.
The company cited a sales increase of

All Natu ral Ingredient
-

At Siemer Milling Company, we take pride in providing you with the best
ingredients for healthy foods that taste great . We heat-treat our wheat flour to
create a fully-functional replacement for natural and modified food starches and
gums. Our all-natural product IS perfect for soups

Benef its
* All-Natural
te

R

laces MFS & Gums

* Improves Flavor & Functionality
* Significant Cost Savings

!

2OO7

rs
Learn more about all-natural ingredients today.
bakingbusiness.com / world-grain.com

Call 1.800.826.1065 or visit www .sie rn er rn illing .com
Milling & Baking News, February 27, 2007 / 55
http://www.bakingbusiness.com http://www.world-grain.com
Milling & Baking News - February 27, 2007

Table of Contents for the Digital Edition of Milling & Baking News - February 27, 2007
