8-K

 

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): November 4, 2009

The Andersons, Inc.
__________________________________________
(Exact name of registrant as specified in its charter)

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)

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

Not Applicable
______________________________________________
Former name or former address, if changed since last report

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

The Andersons, Inc. issued a press release on November 4, 2009, reporting 2009 third quarter and year-to-date earnings. This press release is attached as exhibit 99 to this filing.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	The Andersons, Inc.
November 5, 2009	By:	Michael J. Anderson
		Name: Michael J. Anderson
		Title: President and CEO

Exhibit Index

Exhibit No.	Description
99	Press Release

EX-99

NEWS RELEASE

Contact: Nicholas C. Conrad
VP, Finance & Treasurer Date:

November 4, 2009

Phone: 419-891-6415

E-mail: nick—conrad@andersonsinc.com

THE ANDERSONS, INC. REPORTS THIRD QUARTER RESULTS
Earnings Of $ 0.07 Per Diluted Share

MAUMEE, OHIO, November 4, 2009—The Andersons, Inc. (Nasdaq: ANDE) today announced third quarter net income attributable to the company of $1.3 million, or $0.07 per diluted share, on revenues of $601 million. In the third quarter of 2008, the company reported results of $12.8 million, or $0.70 per diluted share, on revenues of $906 million. For the first nine months of 2009, the company earned $22.1 million, or $1.20 per diluted share, on revenues of $2.1 billion. In the same period of 2008, The Andersons reported results of $66.3 million, or $3.59 per diluted share, on $2.7 billion of revenues. Prior year earnings included unprecedented margins in our Plant Nutrient Group, which accounted for nearly two-thirds of the income for the same period, but which were not sustainable for all of 2008.

The Grain & Ethanol Group’s operating income of $8.9 million in the third quarter was comparable to its year earlier result of $9.4 million. The grain business income was down significantly in comparison to the prior year as space income and margin on grain sales returned to more traditional levels. In addition, bad debt reserves were increased. During the third quarter the ethanol business benefited from greatly improved margins and from the finalization of The Andersons Albion Ethanol LLC business interruption claim. Third quarter 2009 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 $451 million; this includes $176 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 2008, the group’s total revenues were $651 million and included $232 million of the previously mentioned sales. While revenues for the group are lower, due to substantially lower commodity prices, such amounts do not serve as good indicators of income or economic performance in a commodity based business. The Grain & Ethanol Group’s operating income through the first nine months was $23.5 million in 2009 and $31.7 million in 2008. Income through September for the grain division in comparison to the prior year is up considerably. Conversely, year to date income for both the ethanol division and Lansing Trade Group is down significantly. Total revenues through September 2009 and 2008 were $1.4 billion and $1.8 billion, respectively.

The Rail Group had an operating loss of $1.1 million in the third quarter of 2009, which is down significantly from the $5.2 million earned during the same three month period a year ago. The group continues to be impacted by the double digit declines in rail traffic. Gross profit from the leasing business was significantly less due mainly to lower utilization rates and the corresponding increase in storage expense from idle assets. The group now has approximately 24,000 cars and locomotives. The average utilization rate (the percentage of the fleet in service) for the quarter was 74.4 percent in comparison to 93.3 percent for the same period last year. The gross profit of both the railcar repair and manufacturing businesses continued to be down significantly this quarter due to reduced activity resulting from overall economic conditions. Revenues of $21 million for the third quarter were down from the $28 million reported in 2008. The group’s first nine month’s operating income this year was $0.4 million on $72 million of revenues. In 2008, operating income through September was $16.5 million and revenues were $106 million. These year to date results included gains on sales of railcars and related leases of $1.6 million and $4.0 million in 2009 and 2008, respectively.

The Plant Nutrient Group had an operating loss of $2.8 million during the third quarter of 2009 on revenues of $70 million. In the same three month period of 2008, the group achieved operating income of $7.2 million on revenues of $162 million. Margins were down significantly from the prior year, as third quarter 2008 benefited from unprecedented inventory appreciation, whereas third quarter 2009 margins returned to normal levels. Retailers continue to maintain lower inventory holdings that led to reduced sales volume during the third quarter in comparison to the prior year. The group’s first nine month’s operating income this year was $9.6 million on $380 million of revenues. Last year, its operating income through the first nine months was a record $62.1 million on revenues of $541 million, as the group benefited from unprecedented earnings from inventory appreciation, before the significant decline in inventory values, which occurred in the fourth quarter of 2008. The integration of the Hartung Brothers Inc’s. Fertilizer Division, which was acquired on August 1, is proceeding well. This acquisition is allowing the group to expand its value added product offering, grow its wholesale customer base, and broaden its geographic territory.

The Turf & Specialty Group had an operating loss of $0.3 million in the third quarter this year on $21 million of revenues. Last year, the group reported a $0.5 million loss on $23 million of revenues for the period. Turf products tonnage increased year to year, but gross profit per ton decreased due primarily to product mix. Through the first nine months of 2009, the group’s operating income was a record $5.8 million on $106 million of revenues. Last year, its operating income was $3.4 million for the same period, and revenues were $99 million. The group continues to experience positive results from its focus on proprietary products and expanded product lines; however, there has been some softness in the professional product market lately.

The Retail Group had an operating loss of $2.3 million in the third quarter of 2009; this was partially due to the recording of costs associated with the upcoming closing of the Lima store. In the comparable period last year, the group’s operating loss was $0.2 million. The group reported revenues of $37 million for the third quarter of 2009, which is below the $41 million in revenues reported for the same period in 2008. Through nine months, the group recorded a loss of $2.1 million and total revenues of $120 million. Last year through September the group lost $0.2 million on total revenues of $127 million. The group continues to be impacted by the overall economic down turn, which has resulted in a decline of both customer counts and average sale per customer. Margins, however, have remained consistent with the prior year.

“We are disappointed overall with this quarter’s results, which we would characterize as a mix of areas of continued concern, and some positive developments,” said Chairman and Chief Executive Officer Mike Anderson. “Most significantly, our Rail Group continued to be seriously impacted by the overall weak economy. To a lesser extent our Retail Group was also impacted by the economic decline. Conversely, while our Grain & Ethanol Group’s results for the quarter were lower than that of the prior year it was nice to see decent margins return to the ethanol business and Lansing Trade Group return to profitability. Within the grain business, while our quarterly results were well below the prior year, our year to date result is a record, which reflects our solid position in the grain business. And, the current ethanol trading environment, which allowed the third quarter results for the ethanol business to be markedly improved over recent quarters, has allowed us to lock in profitable margins for a significant portion of the fourth quarter sales and for some of the sales during the first half of 2010. Both our Plant Nutrient and Turf & Specialty groups had losses for the quarter, which is a typical third quarter result for these seasonal businesses, and for Plant Nutrient, a return to normal patterns following an extraordinary 2008. Finally, we recognized a one-time $4.1 million gain arising from the freezing of the Company’s defined benefit pension plan effective July 1, 2010.”

The company will host a webcast on Thursday, November 5, 2009 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 in 14 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. 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 for per share amounts)	2009			2008			2009		2008
Sales and merchandising revenues	$	601,000		$	905,712		$	2,109,346	$	2,719,413
Cost of sales and merchandising revenues		549,990			832,687			1,923,628		2,473,810
Gross profit		51,010			73,025			185,718		245,603
Operating, administrative and general expenses		51,303			48,572			144,556		139,836
Interest expense		5,123			7,497			15,974		25,140
Other income (loss):
Equity in earnings (loss) of affiliates		5,275			(619	)		2,385		15,801
Other income, net		2,443			1,279			6,406		6,318
Income before income taxes		2,302			17,616			33,979		102,746
Income taxes		685			6,617			12,803		38,045
Net income		1,617			10,999			21,176		64,701
Net (income) loss attributable to the noncontrolling interest		(367	)		1,841			944		1,588
Net income attributable to The Andersons, Inc.	$	1,250		$	12,840		$	22,120	$	66,289
Per common share:
Basic earnings	$	0.07		$	0.71		$	1.21	$	3.66
Diluted earnings	$	0.07		$	0.70		$	1.20	$	3.59
Dividends paid	$	0.0875		$	0.0850		$	0.2600	$	0.2400

The Andersons, Inc.
Consolidated Balance Sheets
(Unaudited)
	September 30		December 31		September 30
(in thousands)	2009		2008		2008
Assets
Current assets:
Cash and cash equivalents	$	180,578	$	81,682	$	28,541
Restricted cash		3,612		3,927		3,630
Accounts receivable, net		101,279		126,255		181,689
Margin deposits, net		18,948		13,094		58,077
Inventories		190,818		436,920		382,268
Commodity derivative assets — current		26,608		84,919		113,427
Other current assets		51,412		109,165		74,646
Total current assets		573,255		855,962		842,278
Investments and other assets		169,710		153,488		169,800
Commodity derivative assets		2,065		3,662		19,010
Railcar assets leased to others (net)		181,830		174,132		175,947
Property, plant and equipment (net)		133,350		121,529		118,288
	$	1,060,210	$	1,308,773	$	1,325,323
Liabilities and shareholders’ equity
Current liabilities:
Short-term line of credit	$	—	$	—	$	43,600
Commodity derivative liabilities — current		59,033		67,055		80,874
Other current liabilities		214,950		458,208		370,430
Total current liabilities		273,983		525,263		494,904
Deferred items and other long-term liabilities		89,263		80,687		65,007
Commodity derivative liabilities		2,360		3,706		6,825
Long-term debt non-recourse		20,611		40,055		43,964
Long-term debt		286,816		293,955		295,207
Shareholders’ equity		387,177		365,107		419,416
	$	1,060,210	$	1,308,773	$	1,325,323

Segment Data
	Grain &						Plant			Turf &
	Ethanol			Rail			Nutrient			Specialty			Retail			Other			Total
Quarter ended September 30, 2009
Revenues from external customers	$	450,762		$	21,156		$	70,446		$	21,451		$	37,185		$	-		$	601,000
Gross Profit		24,488			3,166			8,206			4,468			10,682			—			51,010
Equity in earnings (loss) of affiliates		5,271			—			1			—			—			3			5,275
Other income (loss), net		751			66			337			287			111			891			2,443
Income before income taxes		9,245			(1,064	)		(2,769	)		(314	)		(2,285	)		(511	)		2,302
Income attributable to the noncontrolling interest		(367	)		—			—			—			—			—			(367	)
Operating income (loss) (a)		8,878			(1,064	)		(2,769	)		(314	)		(2,285	)		(511	)		1,935
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
Equity in earnings (loss) of affiliates		(620	)		—			1			—			—			—			(619	)
Other income (loss), net		1,012			84			404			76			125			(422	)		1,279
Income before income taxes		7,602			5,164			7,223			(497	)		(155	)		(1,721	)		17,616
Income attributable to the noncontrolling interest		1,841			—			—			—			—			—			1,841
Operating income (loss) (a)		9,443			5,164			7,223			(497	)		(155	)		(1,721	)		19,457
Nine months ended September 30, 2009
Revenues from external customers	$	1,431,684		$	71,688		$	379,846		$	105,906		$	120,222		$	-		$	2,109,346
Gross Profit		71,112			13,712			44,834			20,501			35,559			—			185,718
Equity in earnings (loss) of affiliates		2,376			—			6			—			—			3			2,385
Other income (loss), net		1,900			253			1,595			828			358			1,472			6,406
Income before income taxes		22,600			437			9,623			5,825			(2,122	)		(2,384	)		33,979
Income attributable to the noncontrolling interest		944			—			—			—			—			—			944
Operating income (loss) (a)		23,544			437			9,623			5,825			(2,122	)		(2,384	)		34,923
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
Equity in earnings (loss) of affiliates		15,797			—			4			—			—			—			15,801
Other income (loss), net		4,770			602			728			265			433			(480	)		6,318
Income before income taxes		30,082			16,464			62,132			3,385			(172	)		(9,145	)		102,746
Income attributable to the noncontrolling interest		1,588			—			—			—			—			—			1,588
Operating income (loss) (a)		31,670			16,464			62,132			3,385			(172	)		(9,145	)		104,334
(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.