The Andersons, Inc. Reports Record Revenues and Income EPS of $2.19 for Year vs. $1.69 in 2005

2006 Net Income of $36.3 Million Up 39%

PRNewswire-FirstCall
MAUMEE, Ohio
Feb 8, 2007

The Andersons, Inc. , today announced its 2006 results, with full-year net income at $36.3 million, or $2.19 per diluted share, on $1.5 billion of revenues. In 2005, the company's full-year net income was $26.1 million, or $1.69 per diluted share, and total revenues were $1.3 billion. Fourth-quarter net income in 2006 was $13.8 million, or $0.76 per diluted share, and total revenues were $463 million. In the same three-month period of 2005, the company reported net income of $15.3 million, or $0.99 per diluted share, on $384 million of revenues.

The Grain and Ethanol Group's full-year 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 profit 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, Michigan 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, Indiana 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, LLC exceeded its 2005 fourth-quarter income in the most recent three-month period and achieved significant income growth for the full year.

The Rail Group's 2006 revenues of $113 million exceeded 2005 by $21 million. Full-year operating income in 2006 was $19.5 million. In 2005, the group had operating income of $22.8 million on $92 million of revenues. Income from the rail leasing business was lower this year because gains from the sale of railcars were down since fewer cars were liquidated in 2006, and maintenance costs were higher. The group's railcar fleet continued to grow in 2006, and the utilization rate of the fleet remained high. Revenues and income from the group's railcar repair and manufacturing businesses also continued to increase this year. In the fourth quarter of 2005, the group generated total revenues of $33 million and $9.5 million of operating income, including a significant amount from the liquidation of some railcars. Without a similar sale during the fourth quarter this year, the group's fourth-quarter 2006 revenues of $24 million and operating income of $3.4 million were below its 2005 results.

The Plant Nutrient Group's revenues were $265 million in 2006, and its operating income was $3.3 million. In 2005, its revenues amounted to $271 million and operating income was $10.4 million. The company believes that farmers reduced the amount of nutrients applied to their fields in response to significantly higher energy and nutrient input costs during the important 2006 planting and growing seasons. This resulted in lower wholesale and retail demand for plant nutrients including a deferral of fall season purchasing, and a reduction in the group's gross profit and operating income. In the fourth- quarter of 2006, the group had operating income of $1.3 million on $67 million of revenues. In 2005, fourth-quarter revenues were $60 million, and operating income was $1.7 million.

The Turf and Specialty Group's full-year operating income was $3.2 million in 2006, on $111 million of revenues. In 2005, the group incurred an operating loss of $3.0 million, on revenues of $123 million. The year-to-year improvement resulted from a change in the group's business model which realigned staffing and assets in both the turf and cob products businesses. In the fourth quarter, the group typically incurs an operating loss due to the seasonal nature of its businesses. This year it achieved a slight operating profit for the quarter on revenues of $18 million. During the same three-month period in 2005, the group incurred an operating loss of $1.5 million, with revenues of $22 million.

The Retail Group achieved an operating income of $3.2 million in 2006. This was $0.3 million higher than its 2005 performance. Revenues amounted to $177 million in 2006, down 3.0 percent from 2005. Improved average gross margins were partially offset by lower average sales per transaction and increased operating expenses. The group's fourth-quarter operating income of $1.9 million was slightly below its year-earlier result. During the quarter, the group began construction of a smaller-format food-only store in Sylvania, Ohio. The new "Andersons Market" is scheduled to open in the spring of 2007.

"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 President and Chief Executive Officer Mike Anderson. "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 percent. This successful growth benefits all of our constituents - our customers, our employees, our communities, and of course, our shareholders. With the Clymers, Indiana 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."

The company will host a webcast on Friday, February 9, 2007 at 11:00 A.M. ET, to discuss its fourth quarter and full-year performance. This can be accessed under the heading "Investor Relations" on its website at www.andersonsinc.com.

The Andersons, Inc. is a diversified company with interests in the grain, ethanol and plant nutrient sectors of U.S. agriculture, as well as in railcar leasing and repair, 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 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. 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.

                           The Andersons, Inc.

                    Consolidated Statements of Income


                                   Three Months ended       Year ended
                                      December 31           December 31
  (in thousands, except for per
   share amounts)                    2006      2005        2006        2005

  Sales and merchandising
   revenues                      $463,415  $384,421  $1,458,053  $1,296,949
  Cost of sales and
   merchandising revenues         402,865   315,548   1,250,921   1,098,506
  Gross profit                     60,550    68,873     207,132     198,443

  Operating, administrative and
   general expenses                42,885    44,349     158,468     153,759
  Interest expense                  3,786     3,108      16,299      12,079

  Other income, net                 2,151       868      13,914       4,386
  Equity in earnings of
   affiliates                       2,911       984       8,190       2,321
  Income before income taxes       18,941    23,268      54,469      39,312
  Income tax provision              5,163     7,932      18,122      13,225
  Net income                      $13,778   $15,336     $36,347     $26,087

  Per common share:
        Basic earnings              $0.78     $1.03       $2.27       $1.76
        Diluted earnings            $0.76     $0.99       $2.19       $1.69
        Dividends paid             $0.045   $0.0425     $0.1775     $0.1650

  Weighted average shares
   outstanding-basic               17,611    14,930      16,007      14,842
  Weighted average shares
   outstanding-diluted             18,122    15,490      16,566      15,410



                           The Andersons, Inc.

                       Consolidated Balance Sheets
                               (Unaudited)

                                              December 31       December 31
             (in thousands)                       2006              2005

  Assets
  Current assets:
    Cash and cash equivalents                    $23,398           $13,876
    Restricted cash                                3,801             3,936
    Accounts receivable (net) and
     margin deposits                             136,819            83,291
    Inventories                                  299,105           240,806
    Other current assets                          33,325            30,632
  Total current assets                           496,448           372,541

  Investments and other assets                    72,335            39,008
  Railcar assets leased to others (net)          145,059           131,097
  Property, plant and equipment (net)             95,502            91,498
                                                $809,344          $634,144

  Liabilities and shareholders' equity
  Current liabilities:
    Short-term borrowings                        $75,000           $12,400
    Other current liabilities                    265,040           263,922
  Total current liabilities                      340,040           276,322

  Deferred items and other long-term
   liabilities                                    41,267            30,896
  Long-term debt non-recourse                     71,624            88,714
  Long-term debt                                  86,238            79,329
  Shareholders' equity                           270,175           158,883
                                                $809,344          $634,144



                                          Segment Data

                                        Grain &    Plant            Turf &
                                        Ethanol  Nutrient   Rail   Specialty
     Quarter ended December 31, 2006
  Revenues from external customers      $305,279  $67,117  $23,768  $17,955

  Gross Profit                            25,059    6,257    9,320    5,327

  Other income / Equity in earnings of
   affiliates                              3,799      234       69       28

  Operating income (loss)                 12,302    1,349    3,428      173

     Quarter ended December 31, 2005
  Revenues from external customers       215,795   60,400   33,455   21,979

  Gross Profit                            26,655    7,151   14,945    4,809

  Other income / Equity in earnings of
   affiliates                              1,157      200      106       44

  Operating income (loss)                 14,770    1,651    9,542   (1,486)

      Year ended December 31, 2006
  Revenues from external customers       791,207  265,038  113,326  111,284

  Gross Profit                            62,809   24,123   45,709   21,728

  Other income / Equity in earnings of
   affiliates                             15,867    1,015      511    1,115

  Operating income (loss)                 27,955    3,287   19,543    3,246

      Year ended December 31, 2005
  Revenues from external customers       628,255  271,371   92,009  122,561

  Gross Profit                            50,456   32,774   43,281   18,888

  Other income / Equity in earnings of
   affiliates                              2,890    1,096      642      589

  Operating income (loss)                 12,623   10,351   22,822   (3,044)


                                             Segment Data

                                            Retail      Other       Total
     Quarter ended December 31, 2006
  Revenues from external customers         $49,296       $-        $463,415

  Gross Profit                              14,587        -          60,550

  Other income / Equity in earnings of
   affiliates                                  168        764         5,062

  Operating income (loss)                    1,856       (167)       18,941

     Quarter ended December 31, 2005
  Revenues from external customers          52,792        -         384,421

  Gross Profit                              15,313        -          68,873

  Other income / Equity in earnings of
   affiliates                                  129        216         1,852

  Operating income (loss)                    2,003     (3,212)       23,268

      Year ended December 31, 2006
  Revenues from external customers         177,198        -       1,458,053

  Gross Profit                              52,763        -         207,132

  Other income / Equity in earnings of
   affiliates                                  865      2,731        22,104

  Operating income (loss)                    3,152     (2,714)       54,469

      Year ended December 31, 2005
  Revenues from external customers         182,753        -       1,296,949

  Gross Profit                              53,044        -         198,443

  Other income / Equity in earnings of
   affiliates                                  646        844         6,707

  Operating income (loss)                    2,921     (6,361)       39,312

First Call Analyst:
FCMN Contact:

SOURCE: The Andersons, Inc.

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


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