MAUMEE, Ohio, Nov. 3, 2010 /PRNewswire-FirstCall/ -- The Andersons, Inc. (Nasdaq: ANDE) today announced third quarter net income attributable to the company of $1.4 million, or $0.08 per diluted share, on revenues of $707 million. In the third quarter of 2009, the company reported similar results of $1.3 million, or $0.07 per diluted share, on revenues of $601 million. For the first nine months of 2010, the company earned $38.8 million, or $2.09 per diluted share, on revenues of $2.2 billion. In the same period of 2009, The Andersons reported results of $22.1 million, or $1.20 per diluted share, on $2.1 billion of revenues.

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The Grain & Ethanol Group's operating income of $2.5 million in the third quarter was below its year earlier result of $8.9 million. The grain business benefited from increased gross profit on grain sales due to the early harvest; however, this was more than offset by a significant decrease in space income, due to basis losses. The ethanol LLC's had a modest loss this quarter primarily because the company had previously, based on its view of the ethanol market at the time, contracted for ethanol sales at minimal margins. The ethanol results were also impacted by rising prices of certain inputs and higher than anticipated maintenance and repair costs. Third quarter 2010 income from the group's investment in Lansing Trade Group was down slightly from the prior year. Total third quarter revenues for the Grain & Ethanol Group were $498 million; including $219 million of grain and ethanol sales made in accordance with origination and marketing agreements between the company and its ethanol joint ventures. In the third quarter of 2009, the group's total revenues were $451 million and included $176 million of the previously mentioned sales. The Grain & Ethanol Group's operating income through the first nine months was a record $42.8 million in 2010 and $23.5 million in 2009. This considerable year-to-date income differential was due to increased performance in all businesses - grain, ethanol, and Lansing Trade Group. Although space income in the grain business was down significantly during the third quarter, space income through September is up from the prior year. Total revenues through September 2010 and 2009 were $1.5 billion and $1.4 billion, respectively.

The Plant Nutrient Group earned an operating income of $1.5 million during the third quarter of 2010 on revenues of $129 million. In the same three month period of 2009, the group had an operating loss of $2.8 million on revenues of $70 million. Volume was up 60 percent due to re-stocking of the nutrient pipeline spurred by rising grain prices, an early harvest, and favorable application weather throughout the Midwest. Margins were also improved year over year, during the third quarter, due to price escalation. The group's first nine months' operating income this year was $21.2 million on $461 million of revenues. Last year, its operating income through the first nine months was $9.6 million on revenues of $380 million. This year to year improvement was due primarily to a significant increase in volume as spring and fall application rates of potassium and phosphate returned to more normal levels and to the re-stocking which occurred in the third quarter.

The Rail Group had an operating income of $0.1 million in the third quarter of 2010 on revenues of $22 million. The group lost $1.1 million and had revenues of $21 million during the same three month period a year ago. Gross profit from the leasing business was down for the quarter due primarily to lower utilization rates and the corresponding storage expense from idle assets. The average utilization rate for the quarter was 72.9 percent in comparison to 74.4 percent for the same period last year. Increased leasing activity late in the quarter caused the utilization as of September 30 to increase to 75.6 percent. The group has approximately 22,600 cars and locomotives, which is down from the prior year total of 24,000 units due to the selective scrapping of over 1,500 railcars this year. All other operations showed nice improvement this quarter. The short-line railroad in which the group invested last quarter showed solid performance. The group's first nine months operating income this year was $1.2 million on $73 million of revenues. In 2009, operating income through September was $0.4 million and revenues were $72 million.

The Turf & Specialty Group reported an operating loss of $0.3 million in the third quarter for both this year and the prior year. A $1.3 million non-recurring gain was recognized in the prior year. Third quarter revenues for the group were $23 million, which is up $2 million from the prior year. Both turf products tonnage and gross profit per ton increased during the third quarter, in comparison to the prior year. Through the first nine months of 2010, the group's operating income was $4.9 million on $106 million of revenues. Last year, its operating income was a record $5.8 million for the same period on similar revenues.

The Retail Group had an operating loss of $1.7 million in the third quarter of 2010 on revenues of $34 million. In the comparable period last year, the group's operating loss was $2.3 million and total revenues were $37 million. Through nine months, the group recorded a loss of $2.4 million and total revenues of $108 million. Last year through September the group lost $2.1 million on total revenues of $120 million.

"We had mixed results this quarter," said Chairman and Chief Executive Officer Mike Anderson. "We were pleased with the performance of the Plant Nutrient Group, which typically has little to no income during the third quarter. The increase in railcar lease renewals at the end of the quarter and the resulting increase in the utilization rate were encouraging to see. Conversely, our Grain & Ethanol Group's results for the quarter were lower due primarily to the decreased performance of our ethanol business. Our grain business was impacted by a decline in wheat basis, which we expect to be regained through the balance of the wheat crop year. As it relates to our results through September, the Grain & Ethanol Group had record results of $42.8 million, and our Plant Nutrient Group is having their second best year, surpassed only by the unprecedented earnings seen in 2008," added Mr. Anderson.

The company will host a webcast on Thursday, November 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

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

                                       Three Months
                                          ended          Nine Months ended
                                      September 30         September 30
    (in thousands, except for
     per share amounts)                2010      2009        2010        2009
                                       ----      ----        ----        ----

    Sales and merchandising
     revenues                      $706,825  $601,000  $2,239,822  $2,109,346
    Cost of sales and
     merchandising revenues         653,716   549,990   2,040,609   1,923,628
                                    -------   -------   ---------   ---------
    Gross profit                     53,109    51,010     199,213     185,718

    Operating, administrative
     and general expenses            50,143    51,303     146,653     144,556
    Interest expense                  4,625     5,123      13,923      15,974
    Other income (loss):
      Equity in earnings (loss) of
       affiliates                    (1,096)    5,275      15,476       2,385
      Other income, net               3,561     2,443       9,096       6,406
                                      -----     -----       -----       -----
    Income before income taxes          806     2,302      63,209      33,979
    Income taxes                        438       685      24,406      12,803
                                        ---       ---      ------      ------
    Net income                          368     1,617      38,803      21,176
      Net (income) loss
       attributable to the
       noncontrolling interest        1,026      (367)         25         944
                                      -----      ----         ---         ---
    Net income attributable to
     The Andersons, Inc.             $1,394    $1,250     $38,828     $22,120
                                     ======    ======     =======     =======

    Per common share:
          Basic earnings              $0.08     $0.07       $2.11       $1.21
                                      =====     =====       =====       =====
          Diluted earnings            $0.08     $0.07       $2.09       $1.20
                                      =====     =====       =====       =====
          Dividends paid            $0.0900   $0.0875     $0.2675     $0.2600
                                    =======   =======     =======     =======

    The Andersons, Inc.
    Consolidated Balance Sheets
    (Unaudited)

                                    September 30  December 31  September 30
    (in thousands)                           2010         2009          2009
                                             ----         ----          ----

    Assets
    Current assets:
      Cash and cash equivalents           $25,732     $145,929      $180,578
      Restricted cash                       2,915        3,123         3,612
      Accounts receivable, net            143,591      137,195       101,279
      Margin deposits, net                 58,612       27,012        18,948
      Inventories                         432,448      407,845       190,818
      Commodity derivative assets -
       current                            118,488       24,255        26,608
      Other current assets                 48,653       41,464        51,412
                                           ------       ------        ------
    Total current assets                  830,439      786,823       573,255

    Investments and other assets          205,363      182,989       169,710
    Commodity derivative assets             9,851        3,137         2,065
    Railcar assets leased to
     others (net)                         169,694      179,154       181,830
    Property, plant and equipment
     (net)                                147,184      132,288       133,350
                                       $1,362,531   $1,284,391    $1,060,210
                                       ==========   ==========    ==========

    Liabilities and shareholders'
     equity
    Current liabilities:
      Short-term line of credit          $101,400           $-            $-
      Commodity derivative
       liabilities -current                47,968       24,871        59,033
      Other current liabilities           407,917      454,250       214,950
                                          -------      -------       -------
    Total current liabilities             557,285      479,121       273,983

    Deferred items and other long-
     term liabilities                      97,107       90,138        89,263
    Commodity derivative
     liabilities                            1,936          830         2,360
    Long-term debt                        264,349      308,026       307,427
    Shareholders' equity                  441,854      406,276       387,177
                                       $1,362,531   $1,284,391    $1,060,210
                                       ==========   ==========    ==========

    Segment Data

                                      Grain &              Plant     Turf &
                                      Ethanol     Rail    Nutrient  Specialty
                                      -------     ----    --------  ---------
    Quarter ended September 30, 2010
    Revenues from external customers   $498,245  $22,314  $129,109    $23,156

    Gross Profit                         21,372    2,577    14,226      5,217

    Equity in earnings (loss) of
     affiliates                          (1,097)       -         1          -

    Other income (loss), net                709    1,782       233        244

    Income before income taxes            1,430       85     1,462       (291)

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

    Operating income (loss) (a)           2,456       85     1,462       (291)



    Quarter ended September 30, 2009
    Revenues from external customers   $450,762  $21,156   $70,446    $21,451

    Gross Profit                         24,488    3,166     8,206      4,468

    Equity in earnings (loss) of
     affiliates                           5,271        -         1          -

    Other income (loss), net                751       66       337        287

    Income before income taxes            9,245   (1,064)   (2,769)      (314)

    Income attributable to the
     noncontrolling interest               (367)       -         -          -

    Operating income (loss) (a)           8,878   (1,064)   (2,769)      (314)



    Nine months ended September 30,
     2010
    Revenues from external customers $1,492,814  $72,639  $460,671   $105,971

    Gross Profit                         77,378   10,930    57,785     21,689

    Equity in earnings (loss) of
     affiliates                          15,471        -         5          -

    Other income (loss), net              2,006    4,090       866      1,038

    Income before income taxes           42,769    1,225    21,198      4,859

    Income attributable to the
     noncontrolling interest                 25        -         -          -

    Operating income (loss) (a)          42,794    1,225    21,198      4,859



    Nine months ended September 30,
     2009
    Revenues from external customers $1,431,684  $71,688  $379,846   $105,906

    Gross Profit                         71,112   13,712    44,834     20,501

    Equity in earnings (loss) of
     affiliates                           2,376        -         6          -

    Other income (loss), net              1,900      253     1,595        828

    Income before income taxes           22,600      437     9,623      5,825

    Income attributable to the
     noncontrolling interest                944        -         -          -

    Operating income (loss) (a)          23,544      437     9,623      5,825

                                         Retail     Other       Total
                                         ------     -----       -----
    Quarter ended September 30, 2010
    Revenues from external customers      $34,001        $-    $706,825

    Gross Profit                            9,717         -      53,109

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

    Other income (loss), net                  128       465       3,561

    Income before income taxes             (1,651)     (229)        806

    Income attributable to the
     noncontrolling interest                    -         -       1,026

    Operating income (loss) (a)            (1,651)     (229)      1,832



    Quarter ended September 30, 2009
    Revenues from external customers      $37,185        $-    $601,000

    Gross Profit                           10,682         -      51,010

    Equity in earnings (loss) of
     affiliates                                 -         3       5,275

    Other income (loss), net                  111       891       2,443

    Income before income taxes             (2,285)     (511)      2,302

    Income attributable to the
     noncontrolling interest                    -         -        (367)

    Operating income (loss) (a)            (2,285)     (511)      1,935



    Nine months ended September 30,
     2010
    Revenues from external customers     $107,727        $-  $2,239,822

    Gross Profit                           31,431         -     199,213

    Equity in earnings (loss) of
     affiliates                                 -         -      15,476

    Other income (loss), net                  404       692       9,096

    Income before income taxes             (2,400)   (4,442)     63,209

    Income attributable to the
     noncontrolling interest                    -         -          25

    Operating income (loss) (a)            (2,400)   (4,442)     63,234



    Nine months ended September 30,
     2009
    Revenues from external customers     $120,222        $-  $2,109,346

    Gross Profit                           35,559         -     185,718

    Equity in earnings (loss) of
     affiliates                                 -         3       2,385

    Other income (loss), net                  358     1,472       6,406

    Income before income taxes             (2,122)   (2,384)     33,979

    Income attributable to the
     noncontrolling interest                    -         -         944

    Operating income (loss) (a)            (2,122)   (2,384)     34,923

    (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.

SOURCE The Andersons, Inc.

SOURCE: The Andersons, Inc.