Several companies that rely on ethanol as a part of their business have reported strong financial results for the 2nd Quarter. According to The Andersons earning reports, the company’s net income for the 2nd Quarter surpassed the $25 million mark, almost $10 million more than what was reported during the same quarter in 2009. The company attributes much of the gain to their grain and ethanol group which boasted a record $43 million of operating income for the first six months of this year.
“We are pleased with our second quarter performance,” CEO Mike Anderson stated. “The Grain & Ethanol Group led our results with record performance in both the grain and ethanol areas. Our Plant Nutrient Group also had a strong quarter. As I review these results, I am again reminded that our strategy of purposeful diversification allows us to remain a strong and profitable company even when one or more of our business units is under performing,” said Anderson.
Archer Daniels Midland (ADM) also reported strong financials for 2nd Quarter. According to their earnings statements, net earnings increased $388 million to $446 million, and segment operating profit increased $591 million to $799 million from the company’s totals for the same period one year earlier. The Andersons Corn Processing unit’s profit increased $151 million as a result of stronger bioproducts sales.
The company’s rising ethanol profit margins have been the catalyst for the company to increase its ethanol production. At the end of the month, ADM will bring its plant in Cedar Rapids, Iowa online. With the production from the new plant, ADM is expected to become the country’s largest ethanol producer, surpassing POET.