The Andersons, Inc. (Form: 8-K)

THE ANDERSONS, INC. REPORTS THIRD QUARTER RESULTS
Record Earnings Of $0.70 Per Diluted Share

MAUMEE, OHIO, NOVEMBER 4, 2008—The Andersons, Inc. (Nasdaq: ANDE), today announced third quarter net income of $12.8 million, or $0.70 per diluted share, on revenues of $906 million. In the same three month period in 2007, the company reported net income of $10.6 million, or $0.58 per diluted share, on $554 million of revenues. For the first nine months of 2008, the company’s net income was $66.3 million, or $3.60 per diluted share, on revenues of $2.7 billion. In the first nine months of 2007, The Andersons earned $45.3 million, or $2.48 per diluted share, on revenues of $1.6 billion.

The Grain & Ethanol Group’s operating income was $9.4 million in the third quarter, which was below its year earlier result of $13.7 million. The grain business benefited from significantly improved basis income, with the company recovering most of the basis losses incurred earlier in the year. Income from the ethanol business declined $8.8 million during the most recent quarter to a loss of $2.0 million due primarily to the combined performance of the company’s investments in three ethanol limited liability companies. Third quarter income from the group’s investment in Lansing Trade Group was $2.6 million, which is $1.0 million lower than last year. Total third quarter revenues for the group were $651 million; this compares to total revenues of $383 million for the same period last year. While revenues for the group are higher, such amounts do not serve as good predictors of income or economic performance in a commodity based business. During the quarter, the group purchased a grain storage facility, and leased two others. This increased the company’s storage capacity by 7.6 million bushels. The Grain & Ethanol Group’s operating income through the first nine months was $31.7 million in 2008. In 2007, operating income through September was $35.9 million. Total revenues through September 2008 and 2007 were $1.8 billion and $950 million, respectively.

The Rail Group’s operating income was $5.2 million in the third quarter on revenues of $28 million. Last year, the group reported $5.8 million of income and $34 million of revenues for the same three month period. The group recognized $0.7 million in gross margin from the sale of railcars and related leases during the quarter, which is $2.1 million less than similar sales for the same period last year. Gross profit from the leasing business was higher due to wider relet spreads, a higher utilization rate, and growth in the size of the fleet. The fleet has increased 6 percent to 24,007 cars and locomotives. The average utilization rate (the percentage of the fleet in service) for the quarter was 93.2 percent in comparison to 92.5 percent for the same period last year. The gross profit of the railcar repair and manufacturing businesses also grew during the third quarter. The group’s first nine months operating income this year was $16.5 million on $106 million of revenues. In 2007, operating income through September was $15.7 million and revenues were $102 million. Included in these results were gains on sales of railcars and related leases of $4.0 million and $7.9 million, for 2008 and 2007, respectively. A seventh railcar repair shop was opened in Ogden, Utah in September, and the group continues to explore additional railcar repair shop opportunities.

The Plant Nutrient Group had a record operating income of $7.2 million during the third quarter of 2008 on revenues of $162 million. The group reported an $0.8 million operating profit on $77 million of revenues in the third quarter of 2007. The current quarter earnings were impacted both positively and negatively by fluctuating fertilizer prices. During the quarter significant margin increases were recognized on sales made due to the inventory appreciation that occurred as a result of rising prices. Certain inventory values, however, declined sharply late in the third quarter and into the fourth quarter resulting in $13.1 million in adjustments due to adverse purchase commitments and lower of cost or market adjustments. Sales volume during the quarter was slightly above the prior year. The group’s operating income through September this year was $62.1 million on $541 million of revenues. Last year, its operating income through the first nine months was $18.4 million on revenues of $326 million.

The Turf & Specialty Group had an operating loss of $0.5 million in the third quarter this year on $23 million of revenues. Last year, the group reported a loss of $1.6 million on $18 million of revenues. Turf products tonnage increased slightly from year to year, and gross profit per ton increased considerably, due to a larger percentage of sales coming from proprietary products such as Contec DG. The group continues to see proprietary products as a growth area. Through the first nine months of 2008, the group’s operating income was $3.4 million on $99 million of revenues. Last year, its operating income was $0.9 million for the same period, and revenues were $85 million.

The Retail Group reported revenues of $41 million for the third quarter of 2008, which is slightly below the $42 million in revenues reported for the same period in 2007. This sales decline is due to the overall decline in consumer spending. For the three month period, the group’s operating loss was $0.2 million, which is an improvement over the $0.6 million operating loss in the prior year. Through nine months the group has lost $0.2 million on $127 million of revenues. Last year, the operating income through September was $0.8 million and total revenues were $131 million. Margins improved during the third quarter, which has led to year to date margins being consistent with the prior year.

Total company interest expense for the quarter and year to date are $3.3 million and $11.8 million higher than the prior year, respectively.

“Our third quarter and nine month results are both records, however, we were disappointed by the sudden turn of events in the fertilizer markets,” said President and Chief Executive Officer Mike Anderson. “The Plant Nutrient Group contributed significantly to our income during the period, however, our expectations for the group were even higher before the recent sharp decline in global fertilizer prices that led to material inventory adjustment.”

“Our current guidance is $3.50 — $4.00 per diluted share,” Mr. Anderson continued. “As we noted in the second quarter press release our former guidance was heavily influenced by the reported and expected performance of our Plant Nutrient Group. This is again true of our current guidance, which is primarily attributed to the aforementioned decline in global fertilizer prices. The current guidance is also partially attributable to the economics in the ethanol industry. Numerous other factors will also have a bearing on the full year outcome, such as; grain prices, timing of railcar sales, and the performance of our equity investments, which include Lansing Trade Group and the ethanol production facilities.”

The company will host a webcast on Wednesday, November 5, 2008 at 11:00 A.M. ET, to discuss its performance and full year outlook. 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.
Consolidated Statements of Income
(Unaudited)
	Three Months ended					Nine Months ended
	September 30					September 30
(in thousands, except for per share amounts)	2008			2007		2008		2007

Sales and merchandising revenues	$	905,712		$	553,708	$	2,719,413	$	1,594,425
Cost of sales and merchandising revenues		832,687			504,894		2,473,810		1,429,390

Gross profit		73,025			48,814		245,603		165,035

Operating, administrative and general expenses		48,239			39,040		136,934		116,987
Allowance for doubtful accounts receivable		333			458		2,902		1,102
Interest expense		7,497			4,174		25,140		13,386
Other income / gains:
Equity in earnings of affiliates		(619	)		9,518		15,801		17,173
Other income, net		1,279			2,200		6,318		19,141
Minority interest in net (income) loss of subsidiary		1,841			549		1,588		1,065

Income before income taxes		19,457			17,409		104,334		70,939
Income taxes		6,617			6,844		38,045		25,647

Net income	$	12,840		$	10,565	$	66,289	$	45,292


Per common share:
Basic earnings	$	0.71		$	0.59	$	3.67	$	2.54

Diluted earnings	$	0.70		$	0.58	$	3.60	$	2.48

Dividends paid	$	0.0850		$	0.0475	$	0.2400	$	0.1425


Weighted average shares outstanding-basic		18,085			17,878		18,059		17,800

Weighted average shares outstanding-diluted		18,380			18,311		18,409		18,282


The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)

	September 30		December 31		September 30
(in thousands)	2008		2007		2007

Assets
Current assets:
Cash and cash equivalents		28,541	$	22,300	$	22,357
Restricted cash		3,630		3,726		3,737
Accounts receivable, net		184,566		106,257		127,382
Margin deposits, net		58,077		20,467		28,970
Inventories		382,268		502,904		306,908
Commodity derivative assets — current		113,427		205,956		108,039
Other current assets		71,769		43,281		44,200

Total current assets		842,278		904,891		641,593

Investments and other assets		169,800		137,518		115,597
Commodity derivative assets		19,010		29,458		29,999
Railcar assets leased to others (net)		175,947		153,235		143,251
Property, plant and equipment (net)		118,288		99,886		100,829
	$	1,325,323	$	1,324,988	$	1,031,269


Liabilities and shareholders’ equity
Current liabilities:
Short-term borrowings	$	43,600	$	245,500	$	163,400
Commodity derivative liabilities — current		80,874		122,488		77,617
Other current liabilities		370,430		359,224		244,624

Total current liabilities		494,904		727,212		485,641

Deferred items and other long-term liabilities		65,007		49,631		45,315
Commodity derivative liabilities		6,825		2,090		26,285
Long-term debt non-recourse		43,964		56,277		60,107
Long-term debt		295,207		133,195		85,302
Minority interest		10,936		12,219		12,607
Shareholders’ equity		408,480		344,364		316,012
	$	1,325,323	$	1,324,988	$	1,031,269


Segment Data

	Grain &				Plant		Turf &
	Ethanol		Rail		Nutrient		Specialty			Retail			Other			Total

Quarter ended September 30, 2008
Revenues from external customers	$	651,045	$	28,394	$	162,018	$	23,164		$	41,091		$	—		$	905,712

Gross Profit		25,021		9,009		21,731		5,176			12,088			—			73,025

Other income / Equity in earnings of affiliates		392		84		405		76			125			(422	)		660

Operating income (loss)		9,443		5,164		7,223		(497	)		(155	)		(1,721	)		19,457

Quarter ended September 30, 2007
Revenues from external customers	$	382,907	$	33,890	$	76,732	$	17,911		$	42,268		$	—		$	553,708

Gross Profit		16,294		10,367		6,458		3,753			11,942			—			48,814

Other income / Equity in earnings of affiliates		10,226		243		350		185			149			565			11,718

Operating income (loss)		13,706		5,792		815		(1,626	)		(554	)		(724	)		17,409


	Grain &				Plant		Turf &
	Ethanol		Rail		Nutrient		Specialty			Retail			Other			Total

Nine months ended September 30, 2008
Revenues from external customers	$	1,845,955	$	106,346	$	540,988	$	98,740		$	127,384		$	—		$	2,719,413

Gross Profit		65,595		29,260		93,805		19,368			37,575			—			245,603

Other income / Equity in earnings of affiliates		20,567		602		732		265			433			(480	)		22,119

Operating income (loss)		31,670		16,464		62,132		3,385			(172	)		(9,145	)		104,334

Nine months ended September 30, 2007
Revenues from external customers	$	950,430	$	102,251	$	326,200	$	84,609		$	130,935		$	—		$	1,594,425

Gross Profit		46,968		28,897		35,274		14,991			38,905			—			165,035

Other income / Equity in earnings of affiliates		27,401		765		806		380			467			6,495			36,314

Operating income (loss)		35,857		15,702		18,363		880			775			(638	)		70,939


Ohio	000-20557	34-1562374
_____________________ (State or other jurisdiction	_____________ (Commission	______________ (I.R.S. Employer
of incorporation)	File Number)	Identification No.)

480 West Dussel Drive, Maumee, Ohio		43537
_________________________________ (Address of principal executive offices)		___________ (Zip Code)


	The Andersons, Inc.

November 5, 2008	By:	Michael J. Anderson

		Name: Michael J. Anderson
		Title: President and CEO


Exhibit No.		Description

99		Press Release


Date of Report (Date of Earliest Event Reported):		November 4, 2008


Registrant’s telephone number, including area code:		419-893-5050


Contact: Gary L. Smith VP, Finance & Treasurer		Date:		November 4, 2008