The Andersons, Inc. Reports Second Quarter Results

Record Earnings Of $ 2.48 Per Diluted Share

The Plant Nutrient Group Leads Earnings Result

PRNewswire-FirstCall
MAUMEE, Ohio
Aug 6, 2008

The Andersons, Inc. , today announced record second quarter net income of $45.6 million, or $2.48 per diluted share, on revenues of $1.1 billion. In the same three-month period in 2007, the company reported net income of $25.5 million, or $1.40 per diluted share, on $634 million of revenues. For the first six months of 2008, the company's net income was $53.4 million, or $2.91 per diluted share, on revenues of $1.8 billion. In the first half of 2007, The Andersons earned $34.7 million, or $1.90 per diluted share, on revenues of $1.0 billion.

The Grain & Ethanol Group's record operating income of $20.0 million in the second quarter was significantly more than its year earlier result of $12.0 million. The grain business benefited from significantly improved margins on grain sales and the more than doubling of service fee income. The business, however, continues to be impacted by rising costs associated with higher grain prices. Specifically, interest expense increased more than $5.6 million in comparison to the prior period, and contract fair value adjustments were increased due to the increased risk of contract default associated with rising grain prices. Income from the ethanol joint ventures also grew during the most recent quarter. Second quarter income from the group's investment in Lansing Trade Group was $5.1 million higher this year. Total second quarter revenues for the group were $696 million; this compares to total revenues of $324 million for the same period last year. While revenues for the group are higher, such amounts do not serve as good predictors of income or economic performance in a commodity based business. The Grain & Ethanol Group's operating income through the first six months was $22.2 million in both 2008 and 2007. Total revenues through June 2008 and 2007 were $1.2 billion and $568 million, respectively.

The Rail Group's operating income was $4.9 million in the second quarter on revenues of $43 million. Last year, the group reported $6.9 million of income and $42 million of revenues for the same three-month period. The group recognized $1.1 million in gross margin from the sale of railcars and related leases during the quarter; however, in the second quarter last year it recognized gains of $4.1 million for similar sales. Gross profit from the leasing business was higher due to a higher utilization rate and growth in the size of the fleet. The group now has 23,840 cars and locomotives, which is 5 percent more than it had 12 months ago. The average utilization rate (the percentage of the fleet in service) for the quarter was 93.2 percent in comparison to 92.0 percent for the same period last year. The gross profit of the railcar repair business grew slightly during the second quarter due to the addition of a new repair shop in the second half of 2007. The group's first half operating income this year was $11.3 million on $78 million of revenues. In 2007, operating income through June was $9.9 million and revenues were $68 million. Included in these results were gains on sales of railcars and related leases of $3.3 million and $5.0 million, respectively.

The Plant Nutrient Group achieved record operating income of $47.4 million during the second quarter of 2008 on revenues of $274 million. With these results, the group has had quarter income records for six consecutive quarters. The group reported a $17.1 million operating profit on $183 million of revenues in the second quarter of 2007. These exceptional earnings resulted from significant margin increases primarily resulting from inventory value appreciation stemming from its significant storage space and unprecedented escalation in basic nutrient prices. This escalation of plant nutrient prices, lower corn acres, and pre-season buying at the end of 2007 have led to a reduced sales volume when compared to last year. The group's first half operating income this year was $54.9 million on $379 million of revenues. Last year, its operating income through the first six months was $17.5 million on revenues of $249 million. The purchase of Douglass Fertilizer & Chemical Inc. that was completed last quarter has proven to be accretive to earnings, as expected. Yesterday, the group announced the purchase of three pelleted lime facilities in Ohio, Illinois and Nebraska. The acquisition allows the group to expand its value added product offering and further broaden its geographic territory.

The Turf & Specialty Group had operating income of $1.9 million in the second quarter this year on $36 million of revenues. Last year, the group reported $0.7 million of income on $30 million of revenues for the period. Turf products tonnage increased slightly from year to year, and gross profit per ton increased considerably, in spite of record high raw material prices this year, due to a larger percentage of sales coming from proprietary products such as Contec DG. Through the first half of 2008, the group's operating income was $3.9 million on $76 million of revenues. Last year, its operating income was $2.5 million for the same period, and revenues were $67 million. The group, along with several partners, was recently awarded a $5.0 million grant by the state of Ohio for research and development expenses; this will be utilized to further develop technologically advanced and proprietary products.

The Retail Group reported revenues of $53 million for the second quarter of 2008, which is slightly below the $55 million in revenues reported for the same period in 2007. This sales decline is due to the overall decline in consumer spending. For the three-month period, the group earned operating income of $3.4 million. In the comparable period last year, the group's operating income was $3.6 million. Through six months the group has broken even on $86 million of revenues. Last year, operating income through June was $1.3 million and total revenues were $89 million. Margins have been reduced due to competitive sales pressure.

"Our second quarter and first half results are outstanding," said President and Chief Executive Officer Mike Anderson. "Both our Plant Nutrient and Grain & Ethanol Groups contributed significantly to our income during the period. I want to extend special thanks to our Plant Nutrient Group team. The team has worked tirelessly to serve customers and optimize their inventory position, while simultaneously exploring multiple growth opportunities and integrating Douglass Fertilizer into their business. It was truly a team effort and to see their results is rewarding. We are also excited by the addition of the three pelleted lime facilities yesterday, as this acquisition, like Douglass Fertilizer, is consistent with our strategic goal of growing our business to a national footprint.

"Last week we revised our full year guidance to $5.00 - $5.40 per diluted share," Mr. Anderson continued. "Our guidance was heavily influenced by the reported and expected performance of our Plant Nutrient Group. Numerous factors, however, will have a bearing on the full year outcome; basic nutrient prices, grain prices, timing of railcar sales, and the performance of our equity investments, which include the significant contributions of Lansing Trade Group and the ethanol production facilities."

The company will host a webcast on Thursday, August 7, 2008 at 11:00 A.M. ET, to discuss its performance and full year outlook. This can be accessed under the heading "Investors" 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 11 U.S. states and Puerto Rico, 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)          2008       2007         2008       2007

  Sales and merchandising
   revenues                   $1,100,700   $634,214   $1,813,701 $1,040,717
  Cost of sales and
   merchandising revenues        980,363    562,378    1,641,123    924,496
  Gross profit                   120,337     71,836      172,578    116,221

  Operating, administrative
   and general expenses           49,109     40,196       88,695     77,947
  Allowance for doubtful
   accounts receivable               864        411        2,569        644
  Interest expense                 8,521      4,190       17,643      9,212
  Other income / gains:
    Equity in earnings
     of affiliates                 7,781      4,823       16,420      7,655
    Other income, net              2,155      7,068        5,039     16,941
  Minority interest in net
   (income) loss of subsidiary       682        433         (253)       516
  Income before income taxes      72,461     39,363       84,877     53,530
  Income taxes                    26,835     13,875       31,428     18,803
  Net income                     $45,626    $25,488      $53,449    $34,727

  Per common share:
      Basic earnings               $2.53      $1.43        $2.96      $1.96
      Diluted earnings             $2.48      $1.40        $2.91      $1.90
      Dividends paid             $0.0775    $0.0475      $0.1550    $0.0950

  Weighted average shares
   outstanding-basic              18,065     17,792       18,046     17,761
  Weighted average shares.
   outstanding-diluted            18,380     18,245       18,383     18,260



                           The Andersons, Inc.
                       Consolidated Balance Sheets
                               (Unaudited)

                                           June 30  December 31  June 30
  (in thousands)                             2008       2007       2007

  Assets
  Current assets:
    Cash and cash equivalents               33,379    $22,300   $ 28,945
    Restricted cash                          3,664      3,726      3,756
    Accounts receivable, net               194,243    106,257    138,451
    Margin deposits, net                    79,017     20,467     27,139
    Inventories                            406,839    502,904    215,925
    Commodity derivative assets
     - current                             493,571    205,956     47,634
    Other current assets                    40,430     43,281     26,307
  Total current assets                   1,251,143    904,891    488,157

  Investments and other assets             156,005    137,518    106,477
  Commodity derivative assets               84,297     29,458     27,169
  Railcar assets leased to others (net)    152,879    153,235    146,567
  Property, plant and equipment (net)      110,146     99,886     99,117
                                        $1,754,470 $1,324,988   $867,487

  Liabilities and shareholders' equity
  Current liabilities:
    Short-term borrowings                 $432,500  $ 245,500   $ 77,000
    Commodity derivative liabilities
     - current                             160,611    122,488     39,481
    Other current liabilities              350,796    359,224    215,196
  Total current liabilities                943,907    727,212    331,677

  Deferred items and other long-term
   liabilities                              53,058     49,631     40,147
  Commodity derivative liabilities          19,923      2,090     26,002
  Long-term debt non-recourse               47,934     56,277     64,382
  Long-term debt                           281,496    133,195     87,150
  Minority interest                         12,471     12,219     13,120
  Shareholders' equity                     395,681    344,364    305,009
                                        $1,754,470 $1,324,988   $867,487



                                 Segment Data

                                    Grain &              Plant     Turf &
                                    Ethanol     Rail    Nutrient  Specialty

      Quarter ended June 30, 2008
  Revenues from external
   customers                       $695,787   $42,941   $273,501   $35,915

  Gross Profit                       29,195     9,100     58,396     7,266

  Other income / Equity in
   earnings of affiliates             9,002       340        181        96

  Operating income (loss)            19,994     4,874     47,369     1,882

      Quarter ended June 30, 2007
  Revenues from external
   customers                       $323,580   $42,445   $182,908   $30,394

  Gross Profit                       15,254    10,901     23,391     5,167

  Other income / Equity in
   earnings of affiliates             8,361       431        300       133

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


                                    Grain &              Plant     Turf &
                                    Ethanol     Rail    Nutrient  Specialty
      Six months ended June 30, 2008
  Revenues from external
   customers                     $1,194,910   $77,952   $378,970   $75,576

  Gross Profit                       40,574    20,251     72,074    14,192

  Other income / Equity in
   earnings of affiliates            20,175       518        327       189

  Operating income (loss)            22,227    11,300     54,909     3,882

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

  Gross Profit                       30,674    18,530     28,816    11,238

  Other income / Equity in
   earnings of affiliates            17,175       522        456       195

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



                                 Segment Data

                                             Retail    Other      Total
      Quarter ended June 30, 2008
  Revenues from external customers          $52,556       $-  $1,100,700

  Gross Profit                               16,380        -     120,337

  Other income / Equity in earnings
   of affiliates                                161      156       9,936

  Operating income (loss)                     3,360   (5,018)     72,461

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

  Gross Profit                               17,123        -      71,836

  Other income / Equity in earnings
   of affiliates                                158    2,508      11,891

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



                                             Retail    Other      Total
      Six months ended June 30, 2008
  Revenues from external customers          $86,293       $-  $1,813,701

  Gross Profit                               25,487        -     172,578

  Other income / Equity in earnings
   of affiliates                                308      (58)     21,459

  Operating income (loss)                      (17)   (7,424)     84,877

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

  Gross Profit                               26,963        -     116,221

  Other income / Equity in earnings
   of affiliates                                318    5,930      24,596

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

First Call Analyst:
FCMN Contact:

SOURCE: The Andersons, Inc.

CONTACT: Gary L. Smith, VP, Finance & Treasurer of The Andersons, Inc.,
+1-419-891-6417, gary_smith@andersonsinc.com


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