MAUMEE, Ohio, Aug. 3, 2011 /PRNewswire/ -- The Andersons, Inc. (Nasdaq: ANDE), today announced second quarter net income attributable to the company of $45.2 million, or $2.42 per diluted share, on revenues of $1.3 billion. In the same three month period of 2010, the company reported results of $25.2 million, or $1.36 per diluted share, on revenues of $811 million. During the first six months of 2011, the company earned a record $62.5 million, or $3.34 per diluted share. In the first half of 2010, The Andersons reported results of $37.4 million, or $2.02 per diluted share. The revenue for the first six months of 2011 and 2010 were $2.3 billion and $1.5 billion, respectively. It is important to remember that revenues in commodity-based businesses do not serve as good predictors of income or economic performance.

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The Grain Division led the company's second quarter income with its record results. The Plant Nutrient Group also had highly favorable results. Higher than usual space income in the grain markets, particularly wheat, along with favorable fundamentals in other areas of the agricultural sector impacted the second quarter results.

The Grain & Ethanol Group reported record second quarter operating income of $45.3 million, which was more than double its year earlier result of $19.6 million. The group had record operating income through June of $64.0 million this year, in comparison to first half 2010 operating income of $40.3 million.

The Grain Division reported record operating income of $36.5 million in the second quarter of 2011 and $13.4 million for the same period last year. The division benefited from continued strong space income as a result of significant basis gains that were realized earlier in the year than is typical, and good second quarter earnings from its investment in Lansing Trade Group. Revenues for the Grain Division were $797 million and $361 million for the second quarter of 2011 and 2010, respectively. Revenues increased significantly due primarily to higher grain prices. The Grain Division's operating income for the first six months of the year was $51.6 million on revenues of $1.4 billion. Last year, its first half operating income was $25.6 million on revenues of $763 million.

The Ethanol Division earned an operating income of $8.8 million in the second quarter. This compares to $6.2 million earned during the same period of the prior year. The higher income is the result of an increase in the company's earnings from its investments in its three ethanol limited liability company affiliates. Total revenues for the quarter were $165 million. In comparison, the division's revenues for the same period last year were $113 million. Revenues increased primarily due to higher ethanol prices. The Ethanol Division's operating income through June was $12.4 million on revenues of $297 million. In the prior year, its first half operating income was $14.8 million on revenues of $232 million.

The Plant Nutrient Group achieved operating income of $24.1 million during the second quarter of 2011, on revenues of $260 million. In the same three month period of 2010, the group had an operating income of $19.0 million on revenues of $228 million. This improved performance was due primarily to an increase in margin, as volume declined year over year. Margins were strong primarily as a result of nutrient price appreciation attributable to strong world demand and to a lesser extent due to a favorable product mix that included more value added products. The group's first half 2011 operating income was $29.2 million on $383 million of revenues. Last year, the operating income through the first six months was $19.7 million on revenues of $332 million. Increased revenues this year are due to higher selling prices.

The Rail Group had an operating income of $2.8 million in the second quarter on revenues of $30 million. In the same three month period of 2010, the group earned $0.1 million and revenues were $24 million. This quarter, the group recognized $2.3 million in gains on sales of railcars and related leases, whereas last year a gain of $1.7 million was recorded. Gross profit from the leasing business was also higher. The average utilization rate for the quarter was 85 percent in comparison to 71 percent for the same period last year. The group's first half operating income this year was $6.3 million on $58 million of revenues. In 2010, operating income through June was $1.1 million and revenues were $50 million. These results included gains on sales of railcars and related leases of $7.1 million and $4.3 million in 2011 and 2010, respectively.

The Turf & Specialty Group had an operating income of $1.8 million in the second quarter this year on $42 million of revenues. Last year, the group reported operating income of $2.5 million on $41 million of revenues for the same period. Turf products tonnage decreased slightly, and gross profit per ton declined due to higher input costs. Through the first half of 2011, the group's operating income was $5.1 million, which is similar to the prior year's result. The group's revenues for 2011 and 2010 through June were $89 million and $83 million, respectively.

The Retail Group had an operating income of $1.9 million during the second quarter of 2011 on revenues of $45 million. During the same period of the prior year, the group had an operating income of $2.1 million and revenues were $44 million. Through the first six months, the group lost $0.8 million and revenues were $77 million. Last year through June, the group lost $0.7 million on revenues of $74 million.

"We are pleased to be able to report record year to date earnings. While we have always mentioned that our second and fourth quarters are strong for us, these second quarter results were unusually strong due to the significant and accelerated grain basis income," CEO Mike Anderson stated. "The investments made in our agricultural businesses over the last several years are benefitting from a positive agricultural environment. I am particularly proud of the Grain Division's record results this year as well as PNG's strong second quarter results in the face of a delayed spring planting season. It is also worth noting that the environment in the Rail industry has improved and we believe the worst is behind us," added Mr. Anderson.

The company will host a webcast on Thursday, August 4, 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, and general merchandise retail. 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

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

                             Three months ended      Six months ended
                                  June 30                 June 30
    (in thousands,
     except per share
     data)                       2011      2010        2011        2010
                                 ----      ----        ----        ----

    Sales and
     merchandising
     revenues              $1,338,167  $810,999  $2,339,841  $1,532,997
    Cost of sales and
     merchandising
     revenues               1,215,395   723,445   2,138,384   1,386,893
                            ---------   -------   ---------   ---------
    Gross profit              122,772    87,554     201,457     146,104

    Operating,
     administrative and
     general expenses          57,730    51,107     111,437      96,510
    Interest expense            7,562     4,663      14,898       9,298
    Other income:
      Equity in earnings
       of affiliates           12,512     6,667      19,758      16,572
      Other income, net         2,018     1,881       4,324       5,535
                                -----     -----       -----       -----
    Income before
     income taxes              72,010    40,332      99,204      62,403
    Income tax
     provision                 25,975    14,553      35,781      23,968
                               ------    ------      ------      ------
    Net income                 46,035    25,779      63,423      38,435
      Net income
       attributable to
       the noncontrolling
       interest                  (817)     (610)       (939)     (1,001)
                                 ----      ----        ----      ------
    Net income
     attributable to
     The Andersons,
     Inc.                     $45,218   $25,169     $62,484     $37,434
                              =======   =======     =======     =======

    Per common share:
          Basic earnings
           attributable to
           The Andersons,
           Inc. common
           shareholders         $2.44     $1.37       $3.37       $2.04
                                =====     =====       =====       =====
          Diluted earnings
           attributable to
           The Andersons,
           Inc. common
           shareholders         $2.42     $1.36       $3.34       $2.02
                                =====     =====       =====       =====
          Dividends paid      $0.1100   $0.0900     $0.2200     $0.1775
                              =======   =======     =======     =======

    The Andersons, Inc.
    Consolidated Balance Sheets
    (Unaudited)

                                                  December
                                    June 30,         31,      June 30,
    (in thousands)                        2011         2010         2010
                                          ----         ----         ----

    Assets
    Current assets:
      Cash and cash equivalents        $18,616      $29,219     $204,317
      Restricted cash                   12,572       12,134        3,548
      Accounts receivable, net         240,254      152,227      132,701
      Inventories                      469,551      647,189      237,994
      Commodity derivative assets
       -current                        187,438      246,475       21,534
      Other current assets              48,577       51,314       32,176
                                        ------       ------       ------
    Total current assets               977,008    1,138,558      632,270

    Investments and other assets       226,498      223,204      209,290
    Commodity derivative assets
     -noncurrent                         8,560       18,113          389
    Railcar assets leased to
     others, net                       178,141      168,483      169,331
    Property, plant and
     equipment, net                    153,642      151,032      144,165
    Total assets                    $1,543,849   $1,699,390   $1,155,445
                                    ==========   ==========   ==========

    Liabilities and
     shareholders' equity
    Current liabilities:
      Borrowings under short-term
       line of credit                 $194,200     $241,100           $-
      Commodity derivative
       liabilities -current             24,289       57,621       54,918
      Other current liabilities        405,772      538,022      278,051
                                       -------      -------      -------
    Total current liabilities          624,261      836,743      332,969

    Deferred items and other
     long-term liabilities             132,630      117,984       95,268
    Commodity derivative
     liabilities -noncurrent             1,850        3,279        2,911
    Long-term debt, less
     current maturities                260,645      276,825      281,740
    Shareholders' equity               524,463      464,559      442,557
    Total liabilities and
     shareholders' equity           $1,543,849   $1,699,390   $1,155,445
                                    ==========   ==========   ==========

    Segment Data

                                                                     Plant
                                       Grain    Ethanol     Rail   Nutrient
                                       -----    -------     ----   --------
    Quarter ended June 30, 2011
    Revenues from external
     customers                        $797,130  $164,704  $29,501  $259,823

    Gross Profit                        51,480     4,829    6,415    39,251

    Equity in earnings of
     affiliates                          5,428     7,082        -         2

    Other income, net                      522        37      841       134

    Income (loss) before income
     taxes                              36,541     9,647    2,763    24,077

    Income attributable to the
     noncontrolling interest                 -      (817)       -         -

    Operating income (loss) (a)        $36,541    $8,830   $2,763   $24,077

    Quarter ended June 30, 2010
    Revenues from external
     customers                        $360,635  $113,045  $23,635  $228,404

    Gross Profit                        25,679     4,394    4,351    31,563

    Equity in earnings of
     affiliates                          2,272     4,393        -         2

    Other income (loss), net               605        19      499       302

    Income (loss) before income
     taxes                              13,373     6,859      114    19,017

    Income attributable to the
     noncontrolling interest                 -      (610)       -         -

    Operating income (loss) (a)        $13,373    $6,249     $114   $19,017

                                 Turf &
                                Specialty Retail  Other      Total
                                --------- ------  -----      -----
    Quarter ended June 30, 2011
    Revenues from external
     customers                    $41,551 $45,458      $-  $1,338,167

    Gross Profit                    6,968  13,829       -     122,772

    Equity in earnings of
     affiliates                         -       -       -      12,512

    Other income, net                 259     144      81       2,018

    Income (loss) before income
     taxes                          1,778   1,877  (4,673)     72,010

    Income attributable to the
     noncontrolling interest            -       -       -        (817)

    Operating income (loss) (a)    $1,778  $1,877 $(4,673)    $71,193

    Quarter ended June 30, 2010
    Revenues from external
     customers                    $41,182 $44,098      $-    $810,999

    Gross Profit                    8,032  13,535       -      87,554

    Equity in earnings of
     affiliates                         -       -       -       6,667

    Other income (loss), net          377     157     (78)      1,881

    Income (loss) before income
     taxes                          2,486   2,078  (3,595)     40,332

    Income attributable to the
     noncontrolling interest            -       -       -        (610)

    Operating income (loss) (a)    $2,486  $2,078 $(3,595)    $39,722

                                                                      Plant
                                       Grain     Ethanol     Rail   Nutrient
                                       -----     -------     ----   --------
    Six months ended June 30, 2011
    Revenues from external
     customers                       $1,435,097  $297,452  $58,411  $383,472

    Gross Profit                         82,772     9,294   13,532    57,335

    Equity in earnings of
     affiliates                          11,658     8,096        -         4

    Other income, net                     1,102        95    1,594       259

    Income (loss) before income
     taxes                               51,642    13,340    6,309    29,191

    Income attributable to the
     noncontrolling interest                  -      (939)       -         -

    Operating income (loss)             $51,642   $12,401   $6,309   $29,191

    Six months ended June 30, 2010
    Revenues from external
     customers                         $763,003  $231,566  $50,325  $331,562

    Gross Profit                         47,879     8,127    8,353    43,559

    Equity in earnings of
     affiliates                           5,331    11,237        -         4

    Other income, net                     1,254        43    2,308       633

    Income (loss) before income
     taxes                               25,571    15,768    1,140    19,736

    Income attributable to the
     noncontrolling interest                       (1,001)

    Operating income (loss)             $25,571   $14,767   $1,140   $19,736

                                    Turf &
                                   Specialty Retail   Other      Total
                                   --------- ------   -----      -----
    Six months ended June 30, 2011
    Revenues from external
     customers                       $88,821 $76,588       $-  $2,339,841

    Gross Profit                      15,744  22,780        -     201,457

    Equity in earnings of
     affiliates                            -       -        -      19,758

    Other income, net                    549     300      425       4,324

    Income (loss) before income
     taxes                             5,056    (787)  (5,547)     99,204

    Income attributable to the
     noncontrolling interest               -       -        -        (939)

    Operating income (loss)           $5,056   $(787) $(5,547)    $98,265

    Six months ended June 30, 2010
    Revenues from external
     customers                       $82,815 $73,726       $-  $1,532,997

    Gross Profit                      16,472  21,714        -     146,104

    Equity in earnings of
     affiliates                            -       -        -      16,572

    Other income, net                    794     276      227       5,535

    Income (loss) before income
     taxes                             5,150    (749)  (4,213)     62,403

    Income attributable to the
     noncontrolling interest                                       (1,001)

    Operating income (loss)           $5,150   $(749) $(4,213)    $61,402

    (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.