The Andersons, Inc. Reports Record Earnings

Third Quarter & Nine Months Income Both Set New Earnings Records

Grain & Ethanol and Plant Nutrient Businesses Lead Earnings Growth

PRNewswire-FirstCall
MAUMEE, Ohio
Oct 31, 2007

The Andersons, Inc. , today announced that its third quarter and first nine months net income and earnings per diluted share established new records for the company. Net income was $10.6 million, or $0.58 per diluted share for the third quarter, and total revenues were $554 million. In the same three month period of 2006, the company reported net income of $8.4 million, or $0.51 per diluted share, on revenues of $336 million. During the first nine months of 2007, the company earned net income of $45.3 million, or $2.48 per diluted share, on revenues of $1.6 billion. The company more than doubled the net income of $22.6 million earned during the first nine months of 2006, or $1.41 per diluted share, on revenues of $995 million.

The Grain & Ethanol Group's third quarter operating income of $13.7 million was $1.8 million better than its year earlier result, which had included a 2006 gain of $4.2 million from a business interruption insurance claim. Total revenues were $383 million for the period. This included $85 million of ethanol sales made by the group in accordance with marketing agreements between the company and its ethanol joint ventures, for which it receives a fee. In the third quarter of 2006, the group's total revenues were $209 million and did not include any sales from the ethanol joint ventures. Income from ethanol joint ventures grew significantly during the most recent quarter. Both the Albion, Michigan and Clymers, Indiana ethanol plants were in operation during the entire third quarter, which was the first quarter both plants were in full operation. In addition, third quarter income from the group's investment in Lansing Trade Group LLC (LTG) was significantly higher this year. Through the first nine months of 2007, the Grain & Ethanol Group's operating income was $35.9 million, which is more than double the $15.7 million earned for the same period in 2006. Total revenues through September were $950 million, including $171 million in sales of ethanol. In comparison, the group's revenues for the first nine months of the prior year were $486 million and did not include any sales of ethanol from the ethanol joint ventures. Total revenues in the Grain & Ethanol Group have increased for both the quarter and nine months due to an increase in bushels sold, a considerable increase in the average price of the grains sold, and an increase in the gallons of ethanol sold.

The Rail Group's operating income of $5.8 million in the third quarter of 2007 was $0.9 million above the $4.9 million it earned in the same three month period in 2006. Revenues of $34 million for the quarter were up from $27 million in the same period of the prior year. The group now has approximately 22,600 cars and locomotives; this compares to about 20,400 cars and locomotives in the prior year. The group's average lease rates for new transactions and utilization rate (the percentage of the fleet's railcars in service at the end of the period) have decreased from a year ago due to softness in the overall rail leasing market. Including some gains from railcar sales and related leases entered into during the third quarter, operating income in the group's leasing business was higher than its year earlier results. Absent gains from sales, operating income from leasing was slightly lower. The railcar repair and manufacturing businesses also continued to experience lower operating income during the third quarter. Through the first nine months of the year the Rail Group had operating income of $15.7 million on $102 million of revenues. In 2006, operating income through the same period was $16.1 million and revenues amounted to $90 million.

The Plant Nutrient Group achieved operating income of $0.8 million during the third quarter of 2007; this is the first time in the history of the group that they have reported a profit in the third quarter. Total revenues were $77 million for the period. This represents a significant improvement from the same three month period in 2006 when the group reported a $1.9 million operating loss on $39 million of revenues. The net income record resulted from significant increases in both margin and volume. The third quarter volume increase is the result of customers buying earlier and more aggressively due to the escalation of nutrient prices and to replenish depleted fertilizer stockpiles left virtually empty at the end of the second quarter. The group's operating income for the first nine months was $18.4 million on $326 million of revenues. Last year, its operating income through the same period was $1.9 million and revenues were $198 million. The record quarter and year to date income and revenues for the group have been influenced by the significant increase in corn acreage, and nutrient inventory appreciation.

The Turf & Specialty Group incurred an operating loss of $1.6 million in the third quarter this year on $18 million of revenues. Last year, the group reported an operating loss of $0.4 million and revenues of $20 million for the period. Included in the 2006 earnings was a $0.4 million gain from the settlement of an insurance claim. Turf products tonnage continued to be lower in the third quarter due to relatively dry weather throughout much of the country which curtailed sales of some formulated products. Through the first nine months of 2007, the group's operating income was $0.9 million on $85 million of revenues. Last year, its operating income was $3.1 million for the same period, and revenues were $93 million.

The Retail Group reported an operating loss of $0.6 million for the third quarter of 2007; this compares to an operating loss of $0.4 million in the prior year. Revenues were $42 million for the quarter. Although total revenues were up from $41 million in the prior year due to the addition of the Sylvania, Ohio, Food Market, same store sales were down 1.6 percent for the period. The group's nine months to date operating income this year was $0.8 million on $131 million of revenues. Last year, operating income through September was $1.3 million, and total revenues were $128 million. The year to year income differential is caused primarily by competitive sales pressure in the Toledo area market and the performance of the new Sylvania Food Market.

"Our Grain and Ethanol and Plant Nutrient Groups are achieving excellent income growth this year, and the Rail Group is maintaining solid performance despite some tightening in that industry, which more than compensates for the softness being experienced in other segments," said President and Chief Executive Officer Mike Anderson. Mr. Anderson added, "A few weeks ago it became apparent that the results of our agriculture related businesses were stronger than we had expected. As a result, we announced on October 17th that our full-year earnings outlook had improved to be within a range of $3.15 to $3.35 per diluted share. While there are still various factors that could impact our full year results such as supply and demand dynamics in the grain and plant nutrient markets, timing of railcar sales, and investment results of LTG, we continue to believe this is the right guidance at this time."

The company will host a webcast on Thursday, November 1, 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 eight 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   Nine Months ended
                                      September 30         September 30

  (in thousands, except for per
   share amounts)                      2007      2006        2007      2006

  Sales and merchandising
   revenues                        $553,708  $335,871  $1,594,425  $994,638
  Cost of sales and
   merchandising revenues           502,962   284,327   1,423,952   848,056
  Gross profit                       50,746    51,544     170,473   146,582

  Operating, administrative and
   general expenses                  41,430    40,310     123,527   115,583
  Interest expense                    4,174     3,818      13,386    12,513
  Other income / gains:
    Equity in earnings of
     affiliates                       9,574      (483)     17,229     5,279
    Other income, net                 2,144     6,352      19,085    11,763
  Minority interest in net loss /
   (income) of subsidiary               549         -       1,065         -
  Income before income taxes         17,409    13,285      70,939    35,528
  Income taxes                        6,844     4,898      25,647    12,959
  Net income                        $10,565    $8,387     $45,292   $22,569

  Per common share:
        Basic earnings                $0.59     $0.52       $2.54     $1.46
        Diluted earnings              $0.58     $0.51       $2.48     $1.41
        Dividends paid              $0.0475    $0.045     $0.1425   $0.1325

  Weighted average shares
   outstanding-basic                 17,878    16,080      17,800    15,467
  Weighted average shares
   outstanding-diluted               18,311    16,591      18,282    16,021



                           The Andersons, Inc.

                       Consolidated Balance Sheets

                               (Unaudited)

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

  Assets
  Current assets:
    Cash and cash equivalents          $22,357      $23,398        $47,773
    Restricted cash                      3,737        3,801          3,815
    Accounts receivable (net)          127,382       87,698         79,552
    Margin deposits (net)               28,970       15,273         10,540
    Inventories                        306,908      296,457        172,056
    Commodity derivative assets -
     current                           108,039       85,338          9,914
    Other current assets                44,200       33,325         24,335
  Total current assets                 641,593      545,290        347,985

  Investments and other assets         115,597       72,335         63,973
  Commodity derivative assets           29,999       20,862          5,718
  Railcar assets leased to others
   (net)                               143,251      145,059        148,936
  Property, plant and equipment
   (net)                               100,829       95,502         93,065
                                    $1,031,269     $879,048       $659,677

  Liabilities and shareholders'
   equity
  Current liabilities:
    Short-term borrowings              $163,400     $75,000       $      -
    Commodity derivative
     liabilities - current               77,617      43,173         12,785
    Other current liabilities           244,624     265,040        171,638
  Total current liabilities             485,641     383,213        184,423

  Deferred items and other
   long-term liabilities                 45,315      41,267         37,832
  Commodity derivative liability         26,285      26,531          9,007
  Long-term debt non-recourse            60,107      71,624         77,222
  Long-term debt                         85,302      86,238         87,076
  Minority interest                      12,607           -              -
  Shareholders' equity                  316,012     270,175        264,117
                                     $1,031,269    $879,048       $659,677



                                Segment Data

                                      Grain &              Plant    Turf &
                                      Ethanol     Rail    Nutrient Specialty
   Quarter ended September 30, 2007
  Revenues from external customers    $382,907   $33,890   $76,732  $17,911

  Gross Profit                          16,294    12,300     6,458    3,753

  Other income / Equity in earnings
   of affiliates                        10,226       243       350      185

  Operating income (loss)               13,706     5,792       815   (1,626)

   Quarter ended September 30, 2006
  Revenues from external customers    $208,540   $27,339   $38,580  $20,396

  Gross Profit                          20,501    11,628     3,623    4,138

  Other income / Equity in earnings
   of affiliates                         4,064       127       348      569

  Operating income (loss)               11,950     4,898    (1,868)    (420)

   Nine months ended September 30,
    2007
  Revenues from external customers    $950,430  $102,251  $326,200  $84,609

  Gross Profit                          46,968    34,336    35,274   14,991

  Other income / Equity in earnings
   of affiliates                        27,401       765       806      380

  Operating income (loss)               35,857    15,702    18,363      880

   Nine months ended September 30,
    2006
  Revenues from external customers    $485,928   $89,558  $197,921  $93,329

  Gross Profit                          37,750    36,389    17,866   16,401

  Other income / Equity in earnings
   of affiliates                        12,068       442       781    1,087

  Operating income (loss)               15,653    16,115     1,938    3,073



                                Segment Data

                                          Retail     Other       Total
   Quarter ended September 30, 2007
  Revenues from external customers       $42,268     $   -     $553,708

  Gross Profit                            11,941         -       50,746

  Other income / Equity in earnings of
   affiliates                                149       565       11,718

  Operating income (loss)                   (554)     (724)      17,409

   Quarter ended September 30, 2006
  Revenues from external customers       $41,016     $   -     $335,871

  Gross Profit                            11,654         -       51,544

  Other income / Equity in earnings of
   affiliates                                265       496        5,869

  Operating income (loss)                   (418)     (857)      13,285

   Nine months ended September 30, 2007
  Revenues from external customers      $130,935     $   -   $1,594,425

  Gross Profit                            38,904         -      170,473

  Other income / Equity in earnings of
   affiliates                                467     6,495       36,314

  Operating income (loss)                    775      (638)      70,939

   Nine months ended September 30, 2006
  Revenues from external customers      $127,902     $   -     $994,638

  Gross Profit                            38,176         -      146,582

  Other income / Equity in earnings of
   affiliates                                697     1,967       17,042

  Operating income (loss)                  1,296    (2,547)      35,528

First Call Analyst:
FCMN Contact:

SOURCE: The Andersons, Inc.

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


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