Press Releases

The Andersons, Inc. Reports First Quarter Results
Earnings Of $0.27 Per Diluted Share
PRNewswire-FirstCall
MAUMEE, Ohio

The Andersons, Inc. , today announced first quarter net income attributable to the company of $5.0 million, or $0.27 per diluted share, on revenues of $697 million. In the same three month period of 2008, the company reported results of $7.8 million, or $0.42 per diluted share, on $713 million of revenues.

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The Grain & Ethanol Group's first quarter operating income of $5.7 million was higher than its year earlier result of $2.2 million. This was the result of the grain business having a record quarter. The grain business benefited from significantly higher space income. In contrast, last year, the grain business suffered a significant basis loss during the quarter. The ethanol business lost less than $1.0 million in the first quarter due mainly to the combined performance of the company's equity investments in three ethanol limited liability companies. The ethanol business last year benefited from margins being locked in before the market decline, and earning $1.3 million in development fee income. The Lansing Trade Group quarterly results were significantly lower than last year, primarily due to declines in its trading business. Total first quarter revenues for the group were $481 million; this includes $206 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 2008, the group's total revenues were $499 million and included $186 million of the aforementioned sales.

The Rail Group's operating income was $0.9 million in the first quarter of 2009, which is down considerably from the $6.4 million earned during the same three month period a year ago. The group has been impacted by the continued double digit declines in rail traffic that began in late 2008. Revenues of $27 million for the quarter were down from the $35 million reported in 2008. This quarter, the group recognized $0.3 million in gross margin from the sale of railcars and related leases, whereas last year $2.2 million was recorded. Gross profit from the leasing business was significantly less due to lower utilization rates, the corresponding increase in storage expense from idle assets, increased maintenance expense, and decreased leasing rates. The group now has approximately 23,700 cars and locomotives, which is 2 percent more than it had twelve months ago. The average utilization rate (the percentage of the fleet in service) for the quarter was 86.8 percent in comparison to 93.4 percent for the same period last year. Nationwide a significant portion of the total US rail fleet is idle, which suggests a further decline in the Rail Group's utilization rate is possible. The gross profit of both the railcar repair and manufacturing businesses declined significantly in the first quarter due to reduced sales resulting from the overall economic decline.

The Plant Nutrient Group earned an operating income of $2.0 million during the first quarter of 2009, on revenues of $112 million. In the same three month period of 2008, the group reported a $7.5 million operating profit on $105 million of revenues. Overall margins were down this quarter in comparison to the prior year. Margins were positively impacted by a favorable product mix and the recognition of high gross margin profit on deferred sales and prepay contracts from 2008. Margins, however, were negatively impacted by a $2.9 million lower of cost or market inventory adjustment the group recorded this quarter. Total volume increased due to the eight additional fertilizer and lime facilities acquired after the first quarter of 2008. Excluding the newly acquired businesses, volume was down approximately 15 percent due primarily to de-stocking of the retail dealer inventory and weather related spring field work delays. As was recently announced, the group has entered into a definitive agreement to acquire the Hartung Brothers Inc. Fertilizer Division (HBI). HBI is a regional wholesale supplier of liquid fertilizers with five locations in Wisconsin and one in southeastern Minnesota. This acquisition will allow the group to grow its value added product offering, expand its wholesale customer base, and broaden its geographic territory.

The Turf & Specialty Group achieved operating income of $3.1 million on $45 million of revenues during the first quarter. Last year, the group reported $2.0 million of income on $40 million of revenues for the period. Turf products tonnage increased 13 percent from year to year. Gross profit per ton also increased this quarter. The group continues to experience positive results from its focus on proprietary products and expanded product lines.

The Retail Group reported revenues of $34 million for the first quarter of both 2008 and 2009. Customer counts for the year increased slightly; however, this was offset by a slight decline in the average sale per customer. The group continues to be impacted by the weakness in the overall economy; however, successful pricing and marketing strategies led gross profit to increase by more than 3 percent this quarter. For the three month period, the Retail Group incurred an operating loss of $2.7 million, compared to a $3.4 million loss in the first quarter of 2008.

"Considering the state of the economy we feel good about our overall performance so far this year. Our Grain & Ethanol Group had mixed results; with the record performance of the grain business being offset by the results of the ethanol business and Lansing Trade Group. The Plant Nutrient Group was profitable in a quarter that in the past has often been a loss quarter; however, they were again affected by lower of cost or market adjustments. The Turf & Specialty Group is performing well as the value added and propriety product strategy they have pursued continues to be successful. Our Rail Group, and our Retail Group to a lesser extent; however, have been impacted by the overall economic decline," said President and Chief Executive Officer Mike Anderson. "We are especially thankful for the diversity of our business units, as this purposeful diversification has positioned us to remain a strong and profitable company during uncertain economic times," added Mr. Anderson.

Mr. Anderson also stated, "In the past we provided an earnings range with our first quarter release, with updates as deemed necessary. After much consideration, however, we have decided to discontinue our practice of giving earnings guidance at this time. In addition to the impact of the unprecedented pressures facing the overall economy, numerous other factors will have a bearing on our full year outcome: weather patterns during the agricultural planting and growing season within our region, volatility of nutrient and energy prices, timing of railcar sales, and the performance of our equity investments, which include the ethanol production plants and Lansing Trade Group."

The company will host a webcast on Thursday, May 7, 2009 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 in 12 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

  FINANCIAL TABLES FOLLOW . . .




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

                                                        Three Months ended
                                                             March 31
  (in thousands, except for per share amounts)            2009      2008
                                                          ----      ----

  Sales and merchandising revenues                      $697,392  $713,001
  Cost of sales and merchandising revenues               636,018   660,760
                                                         -------   -------
  Gross profit                                            61,374    52,241

  Operating, administrative and general expenses          46,339    39,586
  Allowance for doubtful accounts receivable                 191     1,705
  Interest expense                                         5,690     9,122
  Other income / gains:
    Equity in earnings (loss) of affiliates               (3,674)    8,639
    Other income, net                                      1,239     2,884
                                                           -----     -----
  Income before income taxes                               6,719    13,351
  Income taxes                                             2,806     4,593
                                                           -----     -----
  Net income                                               3,913     8,758
    Net (income) loss attributable to the
     noncontrolling interest                               1,039      (935)
                                                           -----      ----
  Net income attributable to The Andersons, Inc.          $4,952    $7,823
                                                          ======    ======

  Per common share:
      Basic earnings                                       $0.27     $0.43
                                                           =====     =====
      Diluted earnings                                     $0.27     $0.42
                                                           =====     =====
      Dividends paid                                     $0.0850   $0.0775
                                                         =======   =======



                            The Andersons, Inc.
                        Consolidated Balance Sheets
                               (Unaudited)

                                        March 31   December 31 March 31
            (in thousands)                2009        2008       2008
                                          ----        ----       ----

  Assets
  Current assets:
    Cash and cash equivalents           $42,285     $81,682    $34,765
    Restricted cash                       7,342       3,927      3,689
    Accounts receivable, net            154,528     126,255    176,225
    Margin deposits, net                 11,883      13,094     65,932
    Inventories                         381,306     436,920    558,030
    Commodity derivative assets -
     current                             58,804      84,919    283,417
    Other current assets                 78,943     109,165     59,801
                                         ------     -------     ------
  Total current assets                  735,091     855,962  1,181,859

  Investments and other assets          149,285     153,488    156,521
  Commodity derivative assets             2,110       3,662     50,828
  Railcar assets leased to
   others (net)                         174,849     174,132    172,142
  Property, plant and
   equipment (net)                      120,561     121,529    100,192
                                        -------     -------    -------
                                     $1,181,896  $1,308,773 $1,661,542
                                     ==========  ========== ==========

  Liabilities and
   shareholders' equity
  Current liabilities:
    Short-term line of credit           $25,200   $       -   $390,000
    Commodity derivative liabilities
     - current                           39,345      67,055    153,791
    Other current liabilities           344,355     458,208    362,736
                                        -------     -------    -------
  Total current liabilities             408,900     525,263    906,527

  Deferred items and other long-term
   liabilities                           84,304      80,687     49,419
  Commodity derivative liabilities        1,754       3,706      8,734
  Long-term debt non-recourse            32,552      40,055     51,667
  Long-term debt                        284,827     293,955    279,348
  Shareholders' equity                  369,559     365,107    365,847
                                        -------     -------    -------
                                     $1,181,896  $1,308,773 $1,661,542
                                     ==========  ========== ==========



  Segment Data

                                    Grain &            Plant     Turf &
                                    Ethanol     Rail  Nutrient  Specialty
                                    -------     ----  --------  ---------
  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

  Quarter ended March 31, 2008
  Revenues from external
   customers                       $499,123  $35,011  $105,469    $39,661

  Gross Profit                       11,379   11,151    13,678      6,926

  Equity in earnings of
   affiliates                         8,636        -         3          -

  Other income (loss), net            2,537      178       143         93

  Income before income taxes          3,168    6,426     7,540      2,000

  (Income) loss attributable
   to the noncontrolling
   interest                            (935)       -         -          -

  Operating income (loss) (a)         2,233    6,426     7,540      2,000


                                     Retail    Other     Total
                                     ------    -----     -----
  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

  Quarter ended March 31, 2008
  Revenues from external
   customers                        $33,737   $    -  $713,001

  Gross Profit                        9,107        -    52,241

  Equity in earnings of
   affiliates                             -        -     8,639

  Other income (loss), net              147     (214)    2,884

  Income before income taxes         (3,377)  (2,406)   13,351

  (Income) loss attributable
   to the noncontrolling
   interest                               -        -      (935)

  Operating income (loss) (a)        (3,377)  (2,406)   12,416


  (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:
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SOURCE: The Andersons, Inc.

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