The Andersons, Inc. (ANDE - Free Report) declared that its unit, The Andersons Rail Group, has completed the construction of a 27,300 square-foot railcar paint facility in Maumee, Ohio. The new facility will provide a more efficient and environmentally friendly way to clean and paint railcars.
Anderson’s rail operations range from the leasing, marketing and fleet management of railcars and locomotives to railcar repair and metal fabrication. The new Maumee railcar facility will help ease the existing scarcity of this kind of services.
The facility also includes the construction of 1,700 feet of new rail track that will allow the railcars to move through the building. This will also assist Andersons to fulfill the expected growth in demand for quality railcar painting, which ultimately leads to the improvement of customer services.
Maumee, Ohio-based Andersons, which belongs to the agricultural and farm products industry along with Monsanto Co. (MON - Free Report) , Archer Daniels Midland Co (ADM - Free Report) and Bunge Ltd (BG - Free Report) , reported first-quarter 2013 earnings of 67 cents per share, down 32% from 98 cents per share earned in the year-ago quarter. The results missed the Zacks Consensus Estimate of 86 cents.
Anderson’s Rail Group, on the other hand, registered record first quarter results with revenues spiking 28% to $46 million in the quarter and operating income increasing nearly two-fold to $14.6 million. The group's revenues and income benefited from higher lease rates and increased income from car financings.
The Rail Group witnessed a solid run in 2012 and the momentum is expected to continue in 2013 as well. However, the 2012 drought remains a headwind, Andersons expects the Rail Group to continue to perform well based on its proficiently managed railcar portfolio.
Andersons is a diversified company rooted in agriculture. The company conducts its businesses across North America in the grain, ethanol, and plant nutrient sectors, railcar leasing, turf and cob products, and consumer retailing.
Andersons currently retains a short-term Zacks Rank #3 (Hold).