The Andersons, Inc. Reports Record Earnings for the Fourth Consecutive Year

Grain & Ethanol and Plant Nutrient Businesses Lead Earnings Growth

PRNewswire-FirstCall
MAUMEE, Ohio
Feb 6, 2008

The Andersons, Inc. , today announced that both its full year and fourth quarter results established new records for the company. For the full year, net income was $68.8 million, or $3.75 per diluted share, on $2.4 billion of revenues. In 2006, the company's full year net income was $36.3 million, or $2.19 per share, and total revenues were $1.5 billion. The fourth quarter net income was $23.5 million, or $1.28 per diluted share, and total revenues were $785 million. In the same three month period of 2006, the company reported net income of $13.8 million, or $0.76 per share, on revenues of $463 million.

The Grain & Ethanol Group's 2007 operating income of $65.9 million was more than double its previous income record of $28.0 million achieved in 2006. Total revenues were $1.5 billion for the year. This included $407 million of grain and ethanol sales made by the group in accordance with origination and marketing agreements between the company and its ethanol joint ventures, for which it receives a fee. The group's 2006 revenues were $791 million. Total revenues in the Grain & Ethanol Group have increased for both the quarter and year due to a considerable increase in both the volume and price of grain sold, and due to an increase in the gallons of ethanol sold. Income from the ethanol investments grew significantly during the year because of the three ethanol plants in operation or under development; the Albion, MI plant began production in August 2006, the Clymers, IN plant began production in April 2007 and the third plant in Greenville, OH is scheduled to begin production within the next week. The group's grain business also benefited from higher space and fee income. Additionally, income from the group's investment in Lansing Trade Group LLC was more than double the prior year. For the fourth quarter, the Grain & Ethanol Group's operating income was $30.1 million, in contrast to $12.3 million earned in the same three month period of 2006. Total revenues for the quarter were $548 million, including $144 million of grain and ethanol sales made by the group in accordance with origination and marketing agreements with the ethanol joint ventures, for which only a fee is received. In comparison, the group's fourth quarter revenues last year were $305 million.

The Rail Group's operating income for 2007 was $19.5 million, which is the same as 2006. Revenues of $130 million for the year were up from $113 million in the prior year. The group grew the rail fleet by more than 8 percent during 2007, and ended the year with more than 22,700 cars and locomotives. The group's average lease rates have remained stable. The average utilization rate (the percentage of the fleet's railcars in service) for 2007 was 92.6 percent, which was down from the 2006 average of 95.2 percent; however the year ended with a utilization rate of 93.4 percent. Including gains from railcar sales and related leases entered into during the year, gross profit in the group's leasing business was slightly higher than year earlier results. The railcar repair and manufacturing businesses experienced declines in gross profit during the year, but saw some improvement in the fourth quarter. The Rail Group generated $3.8 million in operating income in the fourth quarter of 2007 on $28 million of revenues. In 2006, operating income for the same three month period was $3.4 million and revenues amounted to $24 million.

In 2007, the Plant Nutrient Group exceeded income records ending the year with operating income of $27.1 million on $466 million of revenues. This compares to the prior year operating income of $3.3 million on revenues of $265 million. The 2007 income is more than double the group's prior record of $10.4 million, established in 2005. Total nutrient volume for the year increased by more than 40 percent; this was influenced by both an approximate 20 percent increase in corn acreage and market share growth. Margin improvement also contributed significantly to the improved bottom line. For the fourth quarter, the group's operating income was $8.7 million on $140 million of revenues. Last year its operating income was $1.3 million on revenues of $67 million for the same three month period. Sales volume remained high in the fourth quarter as a result of increased wheat acres and stepped up buying in the face of further escalation of nutrient prices and robust demand driven by anticipated strong corn acres in 2008.

The Turf & Specialty Group's full year operating income was $0.1 million on $104 million of revenues. In 2006, the group had operating income of $3.2 million, and total revenues were $111 million. The 2007 shortfall in the lawn business was attributable to reduced sales of insecticide and fungicide products, and the escalation of raw material costs. The cob business had lower earnings during 2007 mainly due to the need to outsource a portion of the cob from competitors, which resulted in a significantly higher cob cost for the year. The group incurred an operating loss of $0.8 million in the fourth quarter on $19 million of revenues. Last year, its operating income was $0.2 million for the same period, and revenues were $18 million.

Total sales for the Retail Group were $180 million in 2007, or 1.9 percent above the 2006 total of $177 million. Same store sales, however, were down approximately 1 percent. The group reported operating income of $0.1 million in 2007 after recording a $1.9 million impairment charge on certain retail assets. In the prior year, the group earned operating income of $3.2 million. The Retail Group's fourth quarter operating loss was $0.6 million on $50 million of revenues, which includes the impairment. Last year, operating income was $1.9 million, and total revenues were $49 million in the same three month period.

"To be reporting record breaking results for the fourth consecutive year is truly gratifying. Our Grain & Ethanol and Plant Nutrient groups achieved phenomenal income growth this year, and the Rail Group maintained solid performance despite some tightening in the rail industry," said President and Chief Executive Officer Mike Anderson. Mr. Anderson added, "To see the results of our strategic growth initiatives is very satisfying. Our investments in the ethanol business and Lansing Trade Group, and continual expansion of the rail business are clearly paying dividends. It was also rewarding to watch the Plant Nutrient Group rebound from the tough market realities of 2006 and end 2007 with record earnings --- what a difference a year can make. My thanks to all our employees whose hard work made our current year performance possible."

The company will host a webcast on Thursday, February 7, 2008 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         Year ended
                                      December 31            December 31
  (in thousands, except for per
   share amounts)                   2007      2006        2007        2006

  Sales and merchandising
   revenues                      $784,634  $463,415  $2,379,059  $1,458,053
  Cost of sales and
   merchandising revenues         709,957   404,449   2,139,347   1,258,813
  Gross profit                     74,677    58,966     239,712     199,240

  Operating, administrative and
   general expenses                51,664    41,301     169,753     150,576
  Interest expense                  5,662     3,786      19,048      16,299
  Other income / gains:
    Equity in earnings of
     affiliates                    14,689     2,911      31,863       8,190
    Other income, net               2,591     2,151      21,731      13,914
  Minority interest in net
   loss / (income) of
   subsidiary                         291       -         1,356         -
  Income before income taxes       34,922    18,941     105,861      54,469
  Income taxes                     11,430     5,163      37,077      18,122
  Net income                      $23,492   $13,778     $68,784     $36,347

  Per common share:
        Basic earnings              $1.31     $0.78       $3.86       $2.27
        Diluted earnings            $1.28     $0.76       $3.75       $2.19
        Dividends paid             $0.078    $0.045      $0.220      $0.178

  Weighted average shares
   outstanding-basic               17,928    17,611      17,833      16,007
  Weighted average shares
   outstanding-diluted             18,320    18,122      18,326      16,566



                           The Andersons, Inc.
                       Consolidated Balance Sheets
                               (Unaudited)

                                              December 31      December 31
             (in thousands)                        2007             2006

  Assets
  Current assets:
    Cash and cash equivalents                     $22,300          $23,398
    Restricted cash                                 3,726            3,801
    Accounts receivable (net)                     106,257           87,698
    Margin deposits (net)                          30,467           15,273
    Inventories                                   502,904          296,457
    Commodity derivative assets - current         205,956           85,338
    Other current assets                           43,281           33,325
  Total current assets                            914,891          545,290

  Investments and other assets                    137,518           72,335
  Commodity derivative assets                      29,458           20,862
  Railcar assets leased to others (net)           153,235          145,059
  Property, plant and equipment (net)              99,886           95,502
                                               $1,334,988         $879,048

  Liabilities and shareholders' equity
  Current liabilities:
    Short-term borrowings                        $245,500          $75,000
    Commodity derivative liabilities -
     current                                      122,488           43,173
    Other current liabilities                     369,224          265,040
  Total current liabilities                       737,212          383,213

  Deferred items and other long-term
   liabilities                                     49,631           41,267
  Commodity derivative liability                    2,090           26,531
  Long-term debt non-recourse                      56,277           71,624
  Long-term debt                                  133,195           86,238
  Minority interest                                12,219              -
  Shareholders' equity                            344,364          270,175
                                               $1,334,988         $879,048



                                Segment Data

                                      Grain &             Plant     Turf &
                                      Ethanol      Rail  Nutrient Specialty
    Quarter ended December 31, 2007
  Revenues from external customers   $548,222   $27,681  $140,258   $18,921

  Gross Profit                         32,399     8,142    15,328     4,747

  Other income / Equity in
   earnings of affiliates              16,190       273       103        58

  Operating income (loss)              30,077     3,803     8,692      (785)

    Quarter ended December 31, 2006
  Revenues from external customers   $305,279   $23,768   $67,117   $17,955

  Gross Profit                         25,059     7,736     6,257     5,327

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

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

    Year ended December 31, 2007
  Revenues from external customers $1,498,652  $129,932  $466,458  $103,530

  Gross Profit                         79,367    37,040    50,602    19,738

  Other income / Equity in
   earnings of affiliates              43,591     1,038       909       438

  Operating income (loss)              65,934    19,505    27,055        95

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

  Gross Profit                         62,809    37,817    24,123    21,728

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

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



                                Segment Data

                                            Retail     Other         Total
    Quarter ended December 31, 2007
  Revenues from external customers         $49,552      $-        $784,634

  Gross Profit                              14,061       -          74,677

  Other income / Equity in earnings of
   affiliates                                  373       283        17,280

  Operating income (loss)                     (636)   (6,229)       34,922

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

  Gross Profit                              14,587       -          58,966

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

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

    Year ended December 31, 2007
  Revenues from external customers        $180,487      $-      $2,379,059

  Gross Profit                              52,965       -         239,712

  Other income / Equity in earnings of
   affiliates                                  840     6,778        53,594

  Operating income (loss)                      139    (6,867)      105,861

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

  Gross Profit                              52,763       -         199,240

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

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

First Call Analyst:
FCMN Contact:

SOURCE: The Andersons, Inc.

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


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