MAUMEE, Ohio, Nov. 8, 2011 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE) today announced third quarter net income attributable to the company of $10.9 million, or $0.59 per diluted share, on revenues of $939 million. In the third quarter of 2010, the company reported results of $1.4 million, or $0.08 per diluted share, on revenues of $707 million. For the first nine months of 2011, the company earned a record $73.4 million, or $3.92 per diluted share, on revenues of $3.3 billion. In the same period of 2010, The Andersons reported results of $38.8 million, or $2.09 per diluted share, on $2.2 billion of revenues. The majority of the year to year revenue increase relates to rising prices in the company's agricultural businesses. It is important to remember that revenues in commodity-based businesses may not serve as good indicators of income or economic performance.

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The Grain & Ethanol Group reported third quarter operating income of $12.8 million, which was significantly higher than its year earlier result of $2.5 million. The group had record operating income through September of $76.8 million, in comparison to operating income of $42.8 million for the same period in 2010.

The Grain Division reported operating income of $8.3 million in the third quarter of 2011 versus $3.2 million for the same period last year. The division benefited from continued strong space income and record third quarter earnings from its investment in Lansing Trade Group. Revenues for the Grain Division were $539 million and $389 million for the third quarter of 2011 and 2010, respectively. Revenues increased significantly due to higher grain prices. The Grain Division's operating income for the first nine months of the year was $60.0 million on revenues of $2.0 billion. Last year, its operating income through September was $28.8 million on revenues of $1.2 billion.

The Ethanol Division earned an operating income of $4.4 million in the third quarter. This compares to a loss of $0.8 million during the same period of the prior year. The higher income is the result of an increase in the company's earnings from the investment in three ethanol limited liability company affiliates. Total revenues for the quarter were $179 million. In comparison, the division's revenues for the same period last year were $109 million. Revenues increased primarily due to higher ethanol prices. The Ethanol Division's operating income through September was $16.8 million on revenues of $477 million. In the prior year, its operating income for the same period was $14.0 million on revenues of $341 million.

The Plant Nutrient Group achieved operating income of $6.6 million during the third quarter of 2011 on revenues of $138 million. In the same three month period of 2010, the group had an operating income of $1.5 million on revenues of $129 million. This improved performance was due primarily to an increase in margin. Margins were strong primarily as a result of nutrient price appreciation. Total volume was down, year over year, primarily due to re-stocking of the nutrient pipeline some of which occurred in the prior quarter. The group's first nine months operating income this year was $35.8 million on $521 million of revenues. Last year, its operating income through the first nine months was $21.2 million on revenues of $461 million. Increased revenues this year are due to higher selling prices.

The Rail Group had an operating income of $1.1 million in the third quarter on revenues of $24 million. In the same three month period of 2010, the group earned $0.1 million and revenues were $22 million. This quarter, the group recognized $0.7 million in gains on sales of railcars and related leases, whereas last year a gain of $1.3 million was recorded. The average utilization rate for the quarter was 85 percent in comparison to 73 percent for the same period last year. The group's first nine months operating income this year was $7.4 million on $82 million of revenues. In 2010, operating income through September was $1.2 million and revenues were $73 million. These results included gains on sales of railcars and related leases of $7.7 million and $5.6 million in 2011 and 2010, respectively.

The Turf & Specialty Group had an operating loss of $1.2 million in the third quarter this year on $23 million of revenues. Last year, the group reported an operating loss of $0.3 million on $23 million of revenues for the same period. Both turf products tonnage and gross profit per ton decreased during the third quarter, in comparison to the prior year. Through the first nine months of 2011, the group's operating income was $3.8 million on $112 million of revenues. Last year, its operating income was $4.9 million for the same period on revenues of $106 million.

The Retail Group had an operating loss of $1.2 million in the third quarter of 2011 on revenues of $36 million. In the comparable period last year, the group's operating loss was $1.7 million and total revenues were $34 million. Through nine months, the group recorded a loss of $2.0 million and total revenues of $112 million. Last year through September the group lost $2.4 million on total revenues of $108 million.

"We are pleased to be able to report record year to date earnings. Our earnings continue to be led by our Grain & Ethanol and Plant Nutrient Groups," CEO Mike Anderson stated. "The performance of the operating teams in this positive agricultural environment has resulted in strong returns on all assets including acquisitions made in recent years. I am particularly proud of the Grain & Ethanol Group's record results this year, which have benefited from great space income and the record year to date results of Lansing Trade Group," added Mr. Anderson.

The company will host a webcast on Wednesday, November 9, 2011 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           Nine Months ended
                                                 September 30                September 30
    (in thousands, except per share
     data)                                       2011          2010        2011          2010
                                                 ----          ----        ----          ----

    Sales and merchandising revenues         $938,660      $706,825  $3,278,501    $2,239,822
    Cost of sales and merchandising
     revenues                                 873,696       653,716   3,012,080     2,040,609
                                              -------       -------   ---------     ---------
    Gross profit                               64,964        53,109     266,421       199,213

    Operating, administrative and
     general expenses                          54,486        50,143     165,923       146,653
    Interest expense                            5,711         4,625      20,609        13,923
    Other income (loss):
      Equity in earnings (loss) of
       affiliates                               9,731        (1,096)     29,489        15,476
      Other income, net                         1,217         3,561       5,541         9,096
                                                -----         -----       -----         -----
    Income before income taxes                 15,715           806     114,919        63,209
    Income tax provision                        4,484           438      40,265        24,406
                                                -----           ---      ------        ------
    Net income                                 11,231           368      74,654        38,803
      Net (income) loss attributable to
       the noncontrolling interest               (306)        1,026      (1,245)           25
                                                 ----         -----      ------           ---
    Net income attributable to The
     Andersons, Inc.                          $10,925        $1,394     $73,409       $38,828
                                              =======        ======     =======       =======

    Per common share
          Basic earnings attributable to The
           Andersons, Inc. common
           shareholders                         $0.59         $0.08       $3.96         $2.11
                                                =====         =====       =====         =====
          Diluted earnings attributable to
           The Andersons, Inc. common
           shareholders                         $0.59         $0.08       $3.92         $2.09
                                                =====         =====       =====         =====
          Dividends paid                      $0.1100       $0.0900     $0.3300       $0.2675
                                              =======       =======     =======       =======

    The Andersons, Inc.
    Consolidated Balance Sheets
    (Unaudited)

                                September 30   December 31  September 30
    (in thousands)                        2011         2010          2010
                                          ----         ----          ----

    Assets
    Current assets:
      Cash and cash equivalents        $38,510      $29,219       $25,732
      Restricted cash                   11,920       12,134         2,915
      Accounts receivable, net         158,757      152,227       143,591
      Inventories                      458,314      647,189       432,448
      Commodity derivative
       assets -current                 143,010      246,475       177,100
      Other current assets              58,792       51,314        48,653
                                        ------       ------        ------
    Total current assets               869,303    1,138,558       830,439

    Investments and other
     assets                            237,128      223,204       205,363
    Commodity derivative
     assets -noncurrent                  3,907       18,113         9,851
    Railcar assets leased to
     others, net                       183,346      168,483       169,694
    Property, plant and
     equipment, net                    164,893      151,032       147,184
    Total assets                    $1,458,577   $1,699,390    $1,362,531
                                    ==========   ==========    ==========

    Liabilities and
     shareholders' equity
    Current liabilities:
      Borrowings under short-
       term line of credit            $105,000     $241,100      $101,400
      Commodity derivative
       liabilities -current             55,354       57,621        47,968
      Other current liabilities        393,128      538,022       407,917
                                       -------      -------       -------
    Total current liabilities          553,482      836,743       557,285

    Deferred items and other
     long-term liabilities             130,394      117,984        97,107
    Commodity derivative
     liabilities -noncurrent             6,903        3,279         1,936
    Long-term debt, less
     current maturities                235,729      276,825       264,349
    Shareholders' equity               532,069      464,559       441,854
    Total liabilities and
     shareholders' equity           $1,458,577   $1,699,390    $1,362,531
                                    ==========   ==========    ==========

    Segment Data

                                                                                   Plant         Turf &
                                            Grain       Ethanol        Rail       Nutrient      Specialty      Retail     Other     Total
                                            -----       -------        ----       --------      ---------      ------     -----     -----
    Quarter ended
     September 30, 2011
    Revenues from
     external customers                    $538,723       $179,331    $24,067       $137,637       $23,051       $35,851       $-    $938,660

    Gross Profit                             20,757          3,079      5,180         20,977         4,714        10,257        -      64,964

    Equity in earnings
     of affiliates                            6,459          3,270          -              2             -             -        -       9,731

    Other income (loss),
     net                                        652             38        604            282           167           130     (656)      1,217

    Income (loss) before
     income taxes                             8,313          4,749      1,123          6,622        (1,245)       (1,233)  (2,614)     15,715

    Income attributable
     to the
     noncontrolling
     interest                                     -           (306)         -              -             -             -        -        (306)

    Operating income
     (loss) (a)                               8,313          4,443      1,123          6,622        (1,245)       (1,233)  (2,614)     15,409



    Quarter ended
     September 30, 2010
    Revenues from
     external customers                    $388,981       $109,264    $22,314       $129,109       $23,156       $34,001       $-    $706,825

    Gross Profit                             18,449          2,923      2,577         14,226         5,217         9,717        -      53,109

    Equity in earnings
     (loss) of
     affiliates                               1,538         (2,635)         -              1             -             -        -      (1,096)

    Other income, net                           664             45      1,782            233           244           128      465       3,561

    Income (loss) before
     income taxes                             3,220         (1,790)        85          1,462          (291)       (1,651)    (229)        806

    Loss attributable to
     the noncontrolling
     interest                                     -          1,026          -              -             -             -        -       1,026

    Operating income
     (loss) (a)                               3,220           (764)        85          1,462          (291)       (1,651)    (229)      1,832



    Nine months ended
     September 30, 2011
    Revenues from
     external customers                  $1,973,820       $476,783    $82,478       $521,109      $111,872      $112,439       $-  $3,278,501

    Gross Profit                            103,529         12,373     18,712         78,312        20,458        33,037        -     266,421

    Equity in earnings
     of affiliates                           18,117         11,366          -              6             -             -        -      29,489

    Other income (loss),
     net                                      1,754            133      2,198            541           716           430     (231)      5,541

    Income (loss) before
     income taxes                            59,955         18,089      7,432         35,813         3,811        (2,020)  (8,161)    114,919

    Income attributable
     to the
     noncontrolling
     interest                                     -         (1,245)         -              -             -             -        -      (1,245)

    Operating income
     (loss) (a)                              59,955         16,844      7,432         35,813         3,811        (2,020)  (8,161)    113,674



    Nine months ended
     September 30, 2010
    Revenues from
     external customers                  $1,151,984       $340,830    $72,639       $460,671      $105,971      $107,727       $-  $2,239,822

    Gross Profit                             66,328         11,050     10,930         57,785        21,689        31,431        -     199,213

    Equity in earnings
     of affiliates                            6,869          8,602          -              5             -             -        -      15,476

    Other income, net                         1,918             88      4,090            866         1,038           404      692       9,096

    Income (loss) before
     income taxes                            28,791         13,978      1,225         21,198         4,859        (2,400)  (4,442)     63,209

    Loss attributable to
     the noncontrolling
     interest                                     -             25          -              -             -             -        -          25

    Operating income
     (loss) (a)                              28,791         14,003      1,225         21,198         4,859        (2,400)  (4,442)     63,234



    (a) Operating income (loss) for each operating segment 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.

SOURCE The Andersons, Inc.

SOURCE: The Andersons, Inc.