The Andersons, Inc. Reports First Quarter Results

Record First Quarter Earnings of $0.66 per Diluted Share The Grain & Ethanol Group Leads Earning Results

PRNewswire-FirstCall
MAUMEE, Ohio
May 3, 2010

The Andersons, Inc. , today announced record first quarter net income attributable to the company of $12.3 million, or $0.66 per diluted share, on revenues of $722 million. In the same three month period of 2009, the company reported results of $5.0 million, or $0.27 per diluted share, on $697 million of revenues.

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The Grain & Ethanol Group reported a record first quarter operating income of $20.7 million, which was considerably higher than its year earlier result of $5.7 million. This was the result of all three businesses having improved results. The grain business had a record quarter as it benefited from higher space income due in part to the late harvest in 2009. The ethanol business had high earnings despite the decline in ethanol industry margins during the first quarter, as a large percentage of the ethanol had been contracted in advance. The Lansing Trade Group quarterly results were significantly higher than last year. Total first quarter revenues for the Grain & Ethanol Group were $521 million; this includes $210 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. In the first quarter of 2009, the group's total revenues were $481 million and included $206 million of the aforementioned sales. On April 30, the company finalized the previously announced acquisition of the assets of O'Malley Grain, Inc.'s two grain cleaning and storage facilities in Mansfield, IL and Fairmont, NE. This acquisition will allow the group to expand further into the production value chain.

The Rail Group's operating income was $1.0 million in the first quarter of 2010, which is comparable to the $0.9 million earned during the same three month period a year ago. Revenues were $27 million for the quarter in both 2010 and 2009. This quarter, the group recognized $2.6 million in gross margin from the scrapping and sale of railcars, whereas last year $0.3 million was recorded. Gross profit from the leasing business was significantly less due primarily to lower utilization rates, and the corresponding carrying costs of idle assets. The group now has approximately 23,400 cars and locomotives, which is down slightly from the prior year. The average utilization rate (the percentage of the fleet in service) for the quarter was 70.0 percent in comparison to 86.8 percent for the same period last year. As of the end of March, utilization had increased to 70.9 percent. Nationwide a significant portion of the total US rail fleet remains idle, however, rail traffic has recently posted moderate improvement. Both the railcar repair and manufacturing businesses continue to be negatively impacted by the overall economic decline.

The Plant Nutrient Group had operating income of $0.7 million during the first quarter of 2010. In the same three month period of 2009, the group reported a $2.0 million operating profit. Revenues for the first quarter of 2010 and 2009 were $103 million and $112 million, respectively. Even though tons sold increased by almost 10 percent, revenues declined in 2010 due to a decrease in the average selling price. Overall margins were down this quarter in comparison to the prior year because early 2009 margins were favorably impacted by high margins on deferred sales and prepay contracts from 2008. Margins have now returned to more normal levels and are meeting the company's expectations.

The Turf & Specialty Group achieved operating income of $2.7 million on $42 million of revenues during the first quarter. Last year, the group reported $3.1 million of income on $45 million of revenues for the period. Turf products tonnage was down slightly from the prior year, however, gross profit per ton increased this quarter due to product mix. The group continues to experience positive results from its focus on proprietary products and expanded product lines.

The Retail Group had an operating loss of $2.8 million during the first quarter of 2010 on revenues of $30 million. During the same period of the prior year the group had an operating loss of $2.7 million, and total same store revenues were $31 million. Customer counts decreased during the quarter in comparison to the prior year. The group continues to be impacted by the weakness in the overall economy; however, margins are remaining relatively stable.

The company recorded a one time adjustment to increase income tax expense by $1.5 million, as a result of the Patient Protection and Affordable Care Act, signed into law during the first quarter.

"We are pleased to be able to report record earnings," CEO Mike Anderson stated. "The Grain & Ethanol Group led our results with strong performance in all three areas - grain, ethanol and the Lansing Trade Group investment. As I review these results, I am again reminded that our strategy of purposeful diversification allows us to remain a strong and profitable company even when one or more of our business units is continuing to feel the after effect of last year's recession," added Mr. Anderson.

The company will host a webcast on Tuesday, May 4, 2010 at 11:00 A.M. ET, to discuss its performance. This can be accessed under the heading "Investor" 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 across the United States, in Puerto Rico, and has 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


  FINANCIAL TABLES FOLLOW. . .



  The Andersons, Inc.
  Consolidated Statements of Income
  (Unaudited)

                                                Three Months ended
                                                     March 31
  (in thousands, except for per share
   amounts)                                        2010          2009
                                                   ----          ----

  Sales and merchandising revenues             $721,998      $697,392
  Cost of sales and merchandising
   revenues                                     663,448       636,018
                                                -------       -------
  Gross profit                                   58,550        61,374

  Operating, administrative and general
   expenses                                      45,403        46,530
  Interest expense                                4,635         5,690
  Other income / gains:
    Equity in earnings (loss) of
     affiliates                                   9,905        (3,674)
    Other income, net                             3,654         1,239
                                                  -----         -----
  Income before income taxes                     22,071         6,719
  Income taxes                                    9,415         2,806
                                                  -----         -----
  Net income                                     12,656         3,913
    Net (income) loss attributable to the
     noncontrolling interest                       (391)        1,039
                                                   ----         -----
  Net income attributable to The
   Andersons, Inc.                              $12,265        $4,952
                                                =======        ======

  Per common share:
        Basic earnings                            $0.67         $0.27
                                                  =====         =====
        Diluted earnings                          $0.66         $0.27
                                                  =====         =====
        Dividends paid                          $0.0875       $0.0850
                                                =======       =======




  The Andersons, Inc.
  Consolidated Balance Sheets
  (Unaudited)


                                     March 31    December 31     March 31
  (in thousands)                           2010          2009          2009
                                           ----          ----          ----

  Assets
  Current assets:
    Cash and cash equivalents           $74,459      $145,929       $42,285
    Restricted cash                       3,336         3,123         7,342
    Accounts receivable, net            142,617       137,195       154,528
    Margin deposits, net                 32,255        27,012        11,883
    Inventories                         374,893       407,845       381,306
    Commodity derivative assets -
     current                             25,942        24,255        58,804
    Other current assets                 55,049        41,464        78,943
                                         ------        ------        ------
  Total current assets                  708,551       786,823       735,091

  Investments and other assets          192,993       182,989       149,285
  Commodity derivative assets               158         3,137         2,110
  Railcar assets leased to
   others (net)                         175,219       179,154       174,849
  Property, plant and equipment
   (net)                                132,661       132,288       120,561
                                     $1,209,582    $1,284,391    $1,181,896
                                     ==========    ==========    ==========

  Liabilities and shareholders'
   equity
  Current liabilities:
    Short-term line of credit                $-            $-       $25,200
    Commodity derivative
     liabilities -current                62,636        24,871        39,345
    Other current liabilities           344,400       454,250       344,355
                                        -------       -------       -------
  Total current liabilities             407,036       479,121       408,900

  Deferred items and other
   long-term liabilities                 91,840        90,138        84,304
  Commodity derivative
   liabilities                            3,190           830         1,754
  Long-term debt non-recourse            15,316        19,270        32,552
  Long-term debt                        272,535       288,756       284,827
  Shareholders' equity                  419,665       406,276       369,559
                                     $1,209,582    $1,284,391    $1,181,896
                                     ==========    ==========    ==========




  Segment Data


                             Grain &               Plant     Turf &
                             Ethanol     Rail    Nutrient   Specialty
                             -------     ----    --------   ---------
  Quarter ended March 31,
   2010
  Revenues from external
   customers                 $520,889   $26,690  $103,158     $41,633

  Gross Profit                 25,933     4,002    11,996       8,440

  Equity in earnings of
   affiliates                   9,903         -         2           -

  Other income, net               673     1,809       331         417

  Income before income
   taxes                       21,107     1,026       719       2,664

  (Income) loss
   attributable to the
   noncontrolling interest       (391)        -         -           -

  Operating income (loss)
   (a)                         20,716     1,026       719       2,664

  Quarter ended March 31,
   2009
  Revenues from external
   customers                 $480,521   $26,770  $111,762     $44,703

  Gross Profit                 23,299     5,731    14,522       8,419

  Equity in earnings (loss)
   of affiliates               (3,676)        -         2           -

  Other income (loss), net        559       (34)      488         305

  Income before income
   taxes                        4,696       882     2,047       3,097

  (Income) loss
   attributable to the
   noncontrolling interest      1,039         -         -           -

  Operating income (loss)
   (a)                          5,735       882     2,047       3,097







                              Retail    Other      Total
                              ------    -----      -----
  Quarter ended March 31,
   2010
  Revenues from external
   customers                  $29,628        $-   $721,998

  Gross Profit                  8,179         -     58,550

  Equity in earnings of
   affiliates                       -         -      9,905

  Other income, net               119       305      3,654

  Income before income
   taxes                       (2,827)     (618)    22,071

  (Income) loss
   attributable to the
   noncontrolling interest          -         -       (391)

  Operating income (loss)
   (a)                         (2,827)     (618)    21,680

  Quarter ended March 31,
   2009
  Revenues from external
   customers                  $33,636        $-   $697,392

  Gross Profit                  9,403         -     61,374

  Equity in earnings (loss)
   of affiliates                    -         -     (3,674)

  Other income (loss), net        111      (190)     1,239

  Income before income
   taxes                       (2,701)   (1,302)     6,719

  (Income) loss
   attributable to the
   noncontrolling interest          -         -      1,039

  Operating income (loss)
   (a)                         (2,701)   (1,302)     7,758

  (a) Operating income (loss) for each Group is defined as net sales
  and merchandising revenues plus identifiable other income less all
  identifiable operating expenses, including interest expense for
  carrying working capital and long-term assets and is reported net
  of the noncontrolling interest share of (income) loss.

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

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SOURCE: The Andersons, Inc.

CONTACT: Nicholas C. Conrad, VP, Finance & Treasurer, +1-419-891-6415,
nick_conrad@andersonsinc.com


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