The Andersons, Inc. Reports Record Income

EPS of $1.40 for Second Quarter

Grain & Ethanol and Plant Nutrient Businesses Lead Earnings Growth

PRNewswire-FirstCall
MAUMEE, Ohio
Aug 1, 2007

The Andersons, Inc. , today announced that its second-quarter and first-half net income and per-share earnings established new records for the company, more than doubling its best previous performances. Net income was $25.5 million, or $1.40 per diluted share in the second quarter this year, and total revenues were $634 million. In the same three-month period of 2006, the company reported net income of $10.3 million, or $0.66 per diluted share, on $378 million of revenues. For the first six months of 2007, the company's net income was $34.7 million, or $1.90 per diluted share, on revenues of $1.04 billion. In the first half of 2006, The Andersons earned $14.2 million, or $0.90 per diluted share, on revenues of $659 million.

The company's Grain & Ethanol Group achieved operating income of $12.0 million in the most recent quarter, significantly above the $1.9 million it earned in the second quarter of 2006. Total revenues were $324 million for the period. This included $57 million of ethanol sales made by the group in accordance with marketing agreements between the company and its ethanol joint ventures. In the second quarter of 2006, the group's total revenues were $149 million. Grain benefited from improved storage income and fee income for originating corn for ethanol companies, including those in which it is a significant investor. Ethanol also achieved income growth during the most recent quarter. The Albion, Michigan plant, which commenced production of ethanol during the second half of last year, was in operation throughout the second quarter this year, and the plant in Clymers, Indiana began production of ethanol this spring. Second-quarter income from the group's investment in the Lansing Trade Group LLC was lower this year. Through the first six months of 2007, the Grain & Ethanol Group's operating income was $22.2 million, or $18.5 million higher than the first half of 2006. Total year-to-date revenues this year were $568 million. In 2006, the group's first half revenues were $277 million.

The Rail Group's operating income of $6.9 million in the second quarter of 2007 was $1.9 million more than it achieved in the same three-month period a year ago. Revenues of $42 million for the quarter were up $14 million. The group's railcar fleet increased by about 16 percent from its June 2006 total. However, its utilization rate (the percentage of the fleet's railcars in service at the end of the period) decreased somewhat from a year ago. Including some gains from railcar sales made during the second quarter, operating income in the group's leasing business was higher than its year- earlier results, but its railcar repair and manufacturing businesses experienced lower operating income in total for the quarter. The group's first half operating income this year was $9.9 million on $68 million of revenues. In 2006, operating income through the first six months was $11.2 million and revenues amounted to $62 million.

The Plant Nutrient Group achieved operating income of $17.1 million in the second quarter of 2007 on $183 million of revenues. The application of nutrients in conjunction with the planting of agricultural crops throughout the U.S. each spring makes the second quarter the key selling season for this group. This was especially true this year. A large increase in U.S. corn acreage this spring helped the group achieve by far its best-ever quarterly operating income. In 2006, the group's operating income was $5.0 million for the quarter, on $113 million of revenues. The group's first half operating income this year was $17.5 million on $249 million of revenues. Last year, its operating income through the first six months was $3.8 million and revenues amounted to $159 million.

The Turf & Specialty Group had operating income of $0.7 million in the second quarter this year on $30 million of revenues. Last year, it reported $1.3 million of income and $33 million of revenues for the period. Turf products tonnage was lower in the second quarter this year due to relatively dry weather throughout much of the country which curtailed sales of some formulated products. While raw material prices remained high by historical standards, average lawn products gross margins increased slightly as a result of several new value-added products. Through the first half of 2007, the group's operating income was $2.5 million on $67 million of revenues. Last year, its operating income was $3.5 million for the same period, and revenues amounted to $73 million.

The Retail Group reported total revenues of $55 million for the most recent quarter. Same-store sales were down 2.9 percent for the period. Sales of some lawn & garden products were clearly impacted by the dry weather this spring. For this three-month period, the group achieved operating income of $3.6 million. In the comparable period last year, the group's operating income was $4.2 million with revenues of $55 million. The group's six-months to-date operating income this year was $1.3 million on $89 million of revenues. Last year, operating income through June was $1.7 million, and total revenues stood at $87 million.

"Our second-quarter and first-half results are gratifying," said President and Chief Executive Officer Mike Anderson. "The entire Plant Nutrient team did an excellent job in responding to unprecedented market demand this spring, our Grain & Ethanol businesses continued to achieve significant income growth, and we were again able to expand our railcar fleet."

Mr. Anderson also stated, "In mid-June it became apparent that the spring season in our agriculture-related businesses was stronger than we had expected, and we had also begun production of ethanol at the Clymers, Indiana plant which had been under construction for the past year. As a result, we announced that our full-year earnings outlook had improved. While there are still a couple of months left in the growing season this year, and it has been drier than normal in parts of our eastern corn belt region, we now believe that our 2007 full-year earnings will be within a range from $2.90 to $3.15 per diluted share."

The company will host a webcast on Thursday, August 2, 2007 at 11:00 A.M. ET, to discuss its performance and full year outlook. 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 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. 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

                      (Unaudited)
                                    Three Months ended     Six Months ended
                                         June 30               June 30
  (in thousands, except for per
   share amounts)                     2007      2006        2007      2006

  Sales and merchandising revenues $634,214  $378,109  $1,040,717  $658,767
  Cost of sales and merchandising
   revenues                         559,601   323,342     920,083   563,729
  Gross profit                       74,613    54,767     120,634    95,038

  Operating, administrative and
   general expenses                  42,477    38,581      82,097    75,273
  Interest expense                    4,190     4,501       9,212     8,695
  Other income / gains:
    Equity in earnings of
     affiliates                       3,916     2,209       6,748     5,762
    Other income, net                 7,068     2,352      16,941     5,411
  Minority interest in net loss /
   (income) of subsidiary               433       -           516       -
  Income before income taxes         39,363    16,246      53,530    22,243
  Income taxes                       13,875     5,899      18,803     8,061
  Net income                        $25,488   $10,347     $34,727   $14,182

  Per common share:
        Basic earnings                $1.43     $0.68       $1.96     $0.94
        Diluted earnings              $1.40     $0.66       $1.90     $0.90
        Dividends paid              $0.0475    $0.045     $0.0950   $0.0875

  Weighted average shares
   outstanding-basic                 17,792    15,220      17,761    15,155
  Weighted average shares
   outstanding-diluted               18,245    15,776      18,260    15,728



                      The Andersons, Inc.

                   Consolidated Balance Sheets
                           (Unaudited)

                                          June 30   December 31   June 30
             (in thousands)                 2007        2006        2006

  Assets
  Current assets:
    Cash and cash equivalents              $28,945     $23,398     $15,474
    Restricted cash                          3,756       3,801       3,836
    Accounts receivable (net)              138,451      87,698      87,152
    Margin deposits (net)                   27,139      15,273       7,133
    Inventories                            215,925     296,457     174,310
    Commodity derivative assets -
     current                                47,634      85,338       5,686
    Other current assets                    26,307      33,325      24,623
  Total current assets                     488,157     545,290     318,214

  Investments and other assets             106,477      72,335      64,344
  Commodity derivative assets               27,169      20,862      11,192
  Railcar assets leased to others (net)    146,567     145,059     136,271
  Property, plant and equipment (net)       99,117      95,502      91,355
                                          $867,487    $879,048    $621,376

  Liabilities and shareholders' equity
  Current liabilities:
    Short-term borrowings                  $77,000     $75,000     $51,600
    Commodity derivative liabilities -
     current                                39,481      43,173       9,562
    Other current liabilities              215,196     265,040     169,723
  Total current liabilities                331,677     383,213     230,885

  Deferred items and other long-term
   liabilities                              40,147      41,267      33,683
  Commodity derivative liability            26,002      26,531      11,066
  Long-term debt non-recourse               64,382      71,624      82,529
  Long-term debt                            87,150      86,238      88,862
  Minority interest                         13,120         -           -
  Shareholders' equity                     305,009     270,175     174,351
                                          $867,487    $879,048    $621,376



                                Segment Data

                                       Grain &             Plant    Turf &
                                       Ethanol    Rail    Nutrient Specialty
      Quarter ended June 30, 2007
  Revenues from external customers     $323,580  $42,445  $182,908  $30,394

  Gross Profit                           16,161   12,771    23,391    5,167

  Other income / Equity in earnings of
   affiliates                             7,454      431       300      133

  Operating income (loss)                11,981    6,902    17,117      706

      Quarter ended June 30, 2006
  Revenues from external customers     $148,763  $27,836  $113,308  $33,428

  Gross Profit                           10,304   11,883    10,110    5,628

  Other income / Equity in earnings of
   affiliates                             2,363      195       332      155

  Operating income (loss)                 1,923    4,999     5,041    1,344

     Six months ended June 30, 2007
  Revenues from external customers     $567,523  $68,361  $249,468  $66,698

  Gross Profit                           31,581   22,036    28,816   11,238

  Other income / Equity in earnings of
   affiliates                            16,268      522       456      195

  Operating income (loss)                22,151    9,910    17,548    2,506

     Six months ended June 30, 2006
  Revenues from external customers     $277,388  $62,219  $159,341  $72,933

  Gross Profit                           17,249   24,761    14,243   12,263

  Other income / Equity in earnings of
   affiliates                             8,004      315       433      518

  Operating income (loss)                 3,703   11,217     3,806    3,493



                                Segment Data

                                           Retail      Other       Total
       Quarter ended June 30, 2007
  Revenues from external customers        $54,887      $-        $634,214

  Gross Profit                             17,123       -          74,613

  Other income / Equity in earnings of
   affiliates                                 158     2,508        10,984

  Operating income (loss)                   3,616      (959)       39,363

       Quarter ended June 30, 2006
  Revenues from external customers        $54,774      $-        $378,109

  Gross Profit                             16,842       -          54,767

  Other income / Equity in earnings of
   affiliates                                 268     1,248         4,561

  Operating income (loss)                   4,155    (1,216)       16,246

     Six months ended June 30, 2007
  Revenues from external customers        $88,667      $-      $1,040,717

  Gross Profit                             26,963       -         120,634

  Other income / Equity in earnings of
   affiliates                                 318     5,930        23,689

  Operating income (loss)                   1,329        86        53,530

     Six months ended June 30, 2006
  Revenues from external customers        $86,886      $-        $658,767

  Gross Profit                             26,522       -          95,038

  Other income / Equity in earnings of
   affiliates                                 432     1,471        11,173

  Operating income (loss)                   1,714    (1,690)       22,243

First Call Analyst:
FCMN Contact: mary_schroeder@andersonsinc.com

SOURCE: The Andersons, Inc.

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


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