Sioux City-Terra Industries Inc. reported net income available to common shareholders of $69.4 million ($.66 per diluted share) on revenues of $693.8 million for the second quarter ending June 30, 2007, versus the year-ago $5.0 million ($.05 per share) and $523.5 million, respectively. Second-quarter operating income was $128.8 million, up from the year-ago $26.2 million. The improved results, spurred by increased corn acres, were due to higher sales volumes and selling prices. Ammonia, UAN, and AN sales volumes increased 3, 23, and 21 percent, while prices increased 7, 36, and 13 percent, respectively. These improvements helped offset a $7.7 million equity earnings decline at the Trinidad ammonia plant, which reported an extended turnaround and plant outage in the quarter; it came back up in May. Terra also noted a period of relative calm in natural gas prices, with those in the United Kingdom off 48 percent for the quarter. First-half net income was $75.3 million ($.73 per share) on sales of $1.2 billion, compared to the year-ago net loss of $20.3 million ($.22 per share) and revenues of $922.4 million. Terra sees a positive outlook for the rest of 2007 and beyond. “We’re experiencing good demand for fall fertilizer fill, and nitrogen prices remain seasonally firm,” said Terra President and CEO Michael Bennett. “Corn futures continue at levels that should encourage strong plantings next spring.”
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