The Andersons, Inc.,
* Grain sales and margins have been stronger than expected, in spite of the 2002 reduced grain production in the Eastern Corn Belt * Higher grain prices and excellent weather conditions have increased the fall demand for plant nutrients * The Rail Group's car utilization rate continues to improve, as do orders in its fabrication unit * Lawn and turf fertilizer shipments have been stronger than we expected during the fall season * Retail sales are holding up despite the lackluster economy * Improved operating efficiencies * Cash flow has been strong and net capital spending has been below annual depreciation
Mike Anderson, President and Chief Executive Officer said, "We anticipate that 2002 could be a record setter for The Andersons. A portion of the increase in this year's earnings estimate is a result of acceleration of grain sales that we typically hold in inventory and sell the following year. Fortunately, a significant portion of the increase is coming from year-end performance improvements." Anderson added that he is proud that the employees have pulled together to make 2002 a very profitable year. "The economy has been a concern for some time. Our people have done a great job keeping a lid on expenses," Anderson said.
The company said it expects 2003 earnings to be more in line with historical averages. "The most recent four-year average of our earnings, provides a reasonable guideline of $1.15 to $1.30 fully diluted earnings per share for the coming year," explained Anderson. "We have often noted that our business is cyclical given our heavy investment in agribusiness. However, we expect to hold on to the efficiency gains we have achieved in 2002." The company will update the 2003 estimates at their quarterly earnings conference calls.
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.
About The Andersons, Inc.
The Andersons, Inc.,
SOURCE: The Andersons, Inc.
CONTACT: Gary Smith, Vice President, Finance and Treasurer of The
Andersons, Inc., +1-419-891-6417, or
Web site: http://www.andersonsinc.com/