Good ethanol news from The Andersons

Amist the recent doom and gloom of corn ethanol indicators comes encouraging results from a large American agricultural company.

The Andersons (NASDAQ: ANDE) partially credits better than expected profits from new ethanol plants and corn production as contributing to its decision to raise full-year earnings per share estimates.

In early May, the company indicated it anticipated full-year earnings in the range of $2.35 to $2.60 per diluted share. The company is now forecasting its 2007 earnings per diluted share to be between $2.80 and $3.05.

"Our earnings outlook for 2007 has increased primarily because of strong second quarter performance in our agricultural businesses," said President and CEO Mike Anderson.

Anderson gave most credit to the season's planting exceeding expectations, with higher corn acreages and associated higher margins on corn boosting the earnings outlook for the company's Grain & Ethanol and Plant Nutrient Groups.

"Additionally, our new ethanol plant in Clymers, Indiana has begun producing ethanol, and both ethanol plants are realizing better margins and throughput than our earlier projections envisioned."

Some ethanol producers have been concerned about the rising costs of corn eroding their ability to make the fuel at a profit (see Study: U.S. near corn-based ethanol tipping point and Ethanol sector slapped on bad VeraSun earnings.) 

The Andersons is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in rail leasing, industrial products formulation, turf products production, and general merchandise retailing.

Founded in Maumee, Ohio in 1947, the company now has operations in seven U.S. states plus rail equipment leasing interests in Canada and Mexico.