821026--2/26/2010--ANDERSONS

related topics

{customer, product, revenue}

{regulation, government, change}

{cost, regulation, environmental}

{competitive, industry, competition}

{condition, economic, financial}

{gas, price, oil}

{acquisition, growth, future}

{regulation, change, law}

{investment, property, distribution}

We face increasing competition and pricing pressure from other companies in our industries. If we are unable to compete effectively with these companies, our sales and profit margins would decrease, and our earnings and cash flows would be adversely affected. Certain of our business segments are affected by the supply and demand of commodities, and are sensitive to factors outside of our control. Adverse price movements could negatively affect our profitability and results of operations. Many of our business segments operate in highly regulated industries. Changes in government regulations or trade association policies could adversely affect our results of operations. Climate change legislation could have an impact on our results of operations. We handle hazardous materials in our businesses. If environmental requirements become more stringent or if we experience unanticipated environmental hazards, we could be subject to significant costs and liabilities. We rely on a limited number of suppliers for certain of our raw materials and other products and the loss of one or several of these suppliers could increase our costs and have a material adverse effect on any one of our business segments. We are required to carry significant amounts of inventory across all of our businesses. If a substantial portion of our inventory becomes damaged or obsolete, its value would decrease and our profit margins would suffer. Our competitive position, financial position and results of operations may be adversely affected by technological advances. Our investments in limited liability companies are subject to risks beyond our control. We may not achieve anticipated synergies related to strategic acquisitions and such acquisitions could cause unforeseen expenditures and require a significant amount of resources to successfully integrate into our business. Our business involves significant safety risks. Significant unexpected costs and liabilities would have a material adverse effect on our profitability and overall financial position. The U.S. ethanol industry is highly dependent upon a myriad of federal and state legislation and regulation and any changes in such legislation or regulation could materially and adversely affect our future results of operations and financial position. Fluctuations in the selling price and production cost of gasoline as well as the spread between ethanol and corn prices may reduce future profit margins of our ethanol business. A significant portion of our business operates in the railroad industry, which is subject to unique, industry specific risks and uncertainties. Our failure to accurately assess these risks and uncertainties could be detrimental to our Rail Group business. Our Rail Group relies upon customers continuing to lease rather than purchase railcar assets. Our business could be adversely impacted if there were a large customer shift from leasing to purchasing railcars, or if railcar leases are not match funded. During economic downturns, the cyclical nature of the railroad business results in lower demand for railcars and reduced revenue.

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821026--2/26/2010--ANDERSONS_INC