The Andersons, Inc. Reports Record 4th Qtr. & Full Year Earnings

EPS of $2.55 for Year vs. $1.59 in 2003

Full Year Net Income of $19.1 Million Up 64%

PRNewswire-FirstCall
MAUMEE, Ohio
Feb 9, 2005

The Andersons, Inc. , today announced fourth-quarter 2004 net income of $8.3 million, or $1.09 per diluted share. In the same three-month period of 2003, the company's net income was $6.7 million, or $0.91 per diluted share. Full-year net income amounted to $19.1 million, or $2.55 per diluted share. In 2003, the company's net income was $11.7 million, or $1.59 per diluted share. Total revenues were $374 million for the fourth quarter this year compared to $443 million a year ago. Full-year revenues of $1.28 billion in the year just ended were $28 million higher than 2003.

The Agriculture Group's fourth-quarter and full-year results both established new income performance records. Operating income was $11.6 million for the quarter, $1.8 million higher than the $9.8 million the group generated a year earlier. Full-year operating income in 2004 was $21.3 million. This was $7.4 million above the $13.9 million achieved in 2003. Revenues of $288 million for the fourth quarter this year were $75 million below last year primarily due to lower average grain prices. Full-year revenues of $909 million were $10 million higher than the previous year. Record corn and soybean production in the U.S. this year enabled the group's elevators to achieve strong earnings from grain storage in the fourth quarter of 2004, and full-year grain space income was the highest it's been in three years. Operating income in the group's plant nutrient business this year was its second best year ever. As a result of tonnage growth of more than 10% and price increases in certain products, revenues increased significantly. Average gross margins were slightly lower than the prior year. During the year, the Agriculture Group acquired an elevator in Oakville, Indiana, continued to benefit from its investment in Lansing Grain, a grain trading company, and sold two underperforming farm centers. The group has also been evaluating the possibility of investing in ethanol production facilities in its region.

The Rail Group's operating income of $2.8 million in the fourth quarter of 2004 was $1.1 million above the $1.7 million it earned in the year-earlier three-month period. Revenues of $15.7 million for the quarter were 76 percent higher than the $8.9 generated in the comparable period of 2003. Full-year income of $11.0 million and revenues of $59.3 million also exceeded 2003 results by a wide margin. In 2003, the group had earned $4.1 million on revenues of $35.2 million. Contributing to the group's significant income growth in 2004 was a large acquisition made early in the year. This transaction dramatically increased the number of railcars the group owns directly, leases, or manages for others throughout North America and improved the group's overall operating efficiency.

The Processing Group typically incurs an operating loss during the fourth quarter. This year the loss amounted to $2.5 million, on revenues of $21.7 million. During the same three-month period in 2003, the group's operating loss was $1.5 million, with revenues of $20.9 million. In the most recent three-month period, turf-care product volumes were up slightly but were offset by higher employment-related costs and other non-recurring realignment charges. For the full calendar year, turf-care product volumes were lower, and the group incurred an operating loss of $0.1 million, or $1.1 million below the $1.0 million operating income it achieved in 2003. Full-year revenues of $128 million in 2004 were $6 million below last year. Margin pressure in the group's cob-based products business also contributed to the decline in the group's operating income. In response to these conditions, the group has closed a lawn products manufacturing operation in Pennsylvania and has reduced certain sales, general and administrative expenses. It has also reduced year- end inventories of turf-care products by 23 percent versus 2003.

The Retail Group reported revenues of $48.5 million for the fourth quarter of 2004, a 3.3 percent decrease in same-store sales compared to the same three-month period in 2003. Sales of $179 million for the full year were flat compared to the group's 2003 experience. Customer counts and average gross margins were also relatively unchanged, but expenses increased versus 2003, both for the quarter and the full year. As a result, the group achieved an operating income of $0.9 million for the quarter, $0.9 million below the prior year. For the full calendar year, operating income was $2.1 million in 2004, compared to $3.4 million in 2003. It was noted that competitors had opened several new stores in the group's region during the past year, especially in the Lima and Toledo, Ohio market areas.

"All considered, our overall performance in 2004 was very gratifying," said President and Chief Executive Officer Mike Anderson. "Agriculture and Rail both posted exceptional results, the company set new earnings records, for the quarter as well as the year, and cash provided by operating activities has been very strong. We were able to achieve these results in spite of unusually high energy prices, continued escalation in health care costs, and a huge investment in terms of employees' time and significant external expenditures that we incurred in connection with the initial year of the new Sarbanes-Oxley regulations."

The company will host a webcast on Thursday, February 10, 2005 at 10:00 A.M. EST, to discuss its 2004 performance. This can be accessed under the heading "Financial Information" on its website at www.andersonsinc.com .

The Andersons, Inc. is a diversified company with interests in the grain and plant nutrient sectors of U.S. agriculture, as well as in railcar marketing, industrial materials formulation, turf products production, and general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company presently has operations in six U.S. states plus rail equipment leasing interests in Canada and Mexico.

This release contains forward-looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially. Without limitation, these risks include economic, weather and regulatory conditions, competition, and the risk factors set forth from time to time in the company's filings with the Securities and Exchange Commission. It also includes financial information, of which, as of the date of this press release, the Company's independent auditors have not completed their audit. Subsequent events may occur or additional information may arise that could have an effect on the final year-end financial information. Although the Company believes that the assumptions upon which the financial information and its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct.

  The Andersons, Inc. is located on the Internet at www.andersonsinc.com

  FINANCIAL TABLES FOLLOW . . .



                             The Andersons, Inc.

                      Consolidated Statements of Income
                                 (Unaudited)

                                  Three Months ended        Year ended
                                     December 31           December 31
  (in thousands, except for per
   share amounts)                  2004      2003        2004        2003

  Sales and merchandising
   revenues                      $373,642  $443,136  $1,275,273  $1,246,964
  Cost of sales and
   merchandising revenues         317,413   389,892   1,086,174   1,082,870
  Gross profit                     56,229    53,244     189,099     164,094

  Operating, administrative and
   general expenses                43,215    42,074     154,895     143,129
  Interest expense                  2,671     1,929      10,545       8,048
  Other income                      2,322     1,232       6,444       5,048
  Income before income taxes       12,665    10,473      30,103      17,965
  Income taxes                      4,385     3,736      10,959       6,264
  Net income                       $8,280    $6,737     $19,144     $11,701

  Per common share:
        Basic earnings              $1.14     $0.94       $2.64       $1.64
        Diluted earnings            $1.09     $0.91       $2.55       $1.59
        Dividends paid             $0.080    $0.070      $0.305      $0.280

  Weighted average shares
   outstanding-basic                7,292     7,147       7,247       7,141
  Weighted average shares
   outstanding-diluted              7,568     7,388       7,498       7,340



                            The Andersons, Inc.

                         Consolidated Balance Sheets
                                 (Unaudited)

                                               December 31       December 31
             (in thousands)                       2004              2003

  Assets
  Current assets:
    Cash and cash equivalents                     $8,439            $6,444
    Restricted cash                                1,532               -
    Accounts receivable (net) and
     margin deposits                              66,235            68,546
    Inventories                                  251,428           259,755
    Other current assets                          30,659            22,234
  Total current assets                           358,293           356,979

  Other assets                                    20,628            13,702
  Railcar assets leased to others (net)          101,358            29,489
  Property, plant and equipment (net)             92,510            92,449
                                                $572,789          $492,619

  Liabilities and shareholders' equity
  Current liabilities:
    Notes payable                                $12,100           $48,000
    Other current liabilities                    240,447           219,447
  Total current liabilities                      252,547           267,447

  Deferred items and other long-term
   liabilities                                    32,220            27,254
  Long-term debt non-recourse                     64,343               -
  Long-term debt                                  89,803            82,127
  Shareholders' equity                           133,876           115,791
                                                $572,789          $492,619



                                 Segment Data

                        Agri-            Process-
                       culture    Rail     ing     Retail   Other    Total
   Quarter ended
    December 31, 2004

  Revenues from
   external customers  $287,684  $15,685  $21,738  $48,535    $-    $373,642

  Gross Profit           31,017    7,395    3,976   13,841     -      56,229

  Other income            1,132      627      143      215     205     2,322

  Operating income
   (loss)                11,622    2,779   (2,515)     951    (172)   12,665

   Quarter ended
    December 31, 2003

  Revenues from external
   customers            363,130    8,885   20,945   50,176     -     443,136

  Gross Profit           28,568    5,039    5,316   14,321     -      53,244

  Other income              813     (123)     182      146     214     1,232

  Operating income
   (loss)                 9,834    1,689   (1,545)   1,839  (1,344)   10,473

  Year ended
   December 31, 2004

  Revenues from external
   customers            909,480   59,283  127,814  178,696     -   1,275,273

  Gross Profit           87,372   28,793   21,503   51,431     -     189,099

  Other income            3,543      963      596      756     586     6,444

  Operating income
   (loss)                21,302   10,986     (144)   2,108  (4,149)   30,103

  Year ended December
   31, 2003

  Revenues from external
   customers            899,174   35,200  134,017  178,573     -   1,246,964

  Gross Profit           76,706   13,626   23,367   50,395     -     164,094

  Other income            2,518       90      964      835     641     5,048

  Operating income
   (loss)                13,868    4,062    1,022    3,413  (4,400)   17,965

SOURCE: The Andersons, Inc.

CONTACT: Gary Smith of The Andersons, Inc., +1-419-891-6417


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