Sioux City-Terra Industries Inc. reported net income available to common shareholders of $10.3 million ($.11 per common share) on revenues of $449.5 million for the fourth quarter ending Dec. 31, 2006. Income was up $26.7 million over the year-ago loss of $16.4 million ($.17 per share) on revenues of $513.4 million. For 2006, Terra reported a net loss to common shareholders of $900,000 ($.01 per share) on revenues of $1.8 billion, versus 2005’s net income of $17.0 million ($.18 per share) on revenues of $1.9 billion. Fourth-quarter revenues were lower by $64 million, mainly due to lower product prices, with ammonia prices off 17 percent, UAN 15 percent, and urea 23 percent. This was related to lower natural gas prices. In addition, the company reported lower operating rates at its Trinidad ammonia plant. It expects lower operating rates until repairs are completed during the first quarter of 2007. As for 2006 results, Terra said revenues were down mainly due to lower UAN and AN sales volumes, which were affected by lower overall fertilizer consumption during planting season. Overall, Terra noted that first half operating rates were only 74 percent, which resulted in higher costs for purchased products and reduced plant efficiencies. Second half improved due to more stable gas prices and higher grain prices.
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