MAUMEE, Ohio, July 5 /PRNewswire-FirstCall/ -- The Andersons, Inc.
(Nasdaq: ANDE) today stated that damage to one of its two ship-loading grain
elevators in Toledo will not prevent the company from meeting its customer
service commitments. The elevator, which The Andersons leases from Cargill,
Inc., was damaged by two explosions and a subsequent fire on Friday, July 1,
the cause of which is still being investigated. The damaged elevator
represents about seven percent of the company's total grain storage capacity.
"Although the damage will severely disrupt activities at this facility,
our other Andersons' elevators in the Toledo area will help us fulfill our
cash grain purchase and sale contracts as well as any delivery obligations to
the Chicago Board of Trade," said Hal Reed, President of the Grain Division.
"Thankfully, no one was injured in the incident which severely damaged
portions of the facility. While the full extent of the damage has not yet been
determined, we have already begun planning our strategy to work around the
damaged facility and begin repairs," said Mr. Reed. "We're prepared to do
whatever it takes to give our customers the service they deserve and have come
to expect from us. Having four other elevators in the Toledo area will help
mitigate the service disruption and logistics issues that we expect to
encounter."
According to Gary Smith, Vice President Finance and Treasurer, "The
financial impact of the damage cannot be precisely determined at this time.
The company is adequately insured for property losses and/or business
interruption, with a deductible amount of two hundred fifty thousand dollars.
It's likely that the facility reconstruction and insurance claim process will
extend into 2006, so we could experience a reduction in 2005 earnings with a
commensurate increase next year once the insurance claim is resolved. Earnings
for the two-year period should not be impacted materially."
The Andersons, Inc. is a diversified company with interests in the grain
and plant nutrient sectors of U.S. agriculture, as well as in railcar
marketing, industrial materials formulation, turf products production, and
general merchandise retailing. Founded in Maumee, Ohio, in 1947, the company
presently has operations in seven U.S. states plus rail equipment leasing
interests in Canada and Mexico. Total revenues in 2004 were $1.3 billion.
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 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 http://www.andersonsinc.com .
SOURCE The Andersons, Inc.
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Related links:
http://www.andersonsinc.com
CONTACT:
Nick Conrad, Assistant Treasurer of The
Andersons, Inc., +1- 419-891-6415
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