Terra posts 3Q earnings of $54.4 M

Terra Industries Inc. posted third-quarter earnings of $54.4 million ($.51 per diluted share) on sales of $593.7 million for the third quarter ending Sept. 30, compared to the year ago $10.3 million ($.10 per share) and $464.8 million, respectively. Income would have been even more, but the company recorded a $39 million impairment charge for its Beaumont, Texas, facility, which is being sold.

Revenues were up due to higher nitrogen selling prices. Ammonia, UAN, and ammonium nitrate prices improved 8, 61, and 11 percent, respectively, over the same period last year. Sales volumes also improved, with ammonia, UAN, and AN volumes up 2, 8, and 28 percent, respectively, over last year.

“We’re very pleased with Terra’s strong performance in a positive industry-wide environment in the third quarter,” said Terra President and CEO Michael Bennett. “We saw the expected seasonal declines in nitrogen selling prices, but continued strong demand reversed the trend and prices rose though the quarter.”

Nine-month net income was $132.2 million ($1.24 per share) on sales of $1.79 billion, versus the year-ago loss of $7.4 million ($.12 per share) and $1.39 billion.

Average North America natural gas prices were up for the quarter at $7.12/mmBtu versus the year-ago $6.20/mmBtu, but they were down year-to-date ?Çô $6.95/mmBtu versus $7.36/mmBtu.

“As we look ahead, we are encouraged by forecasts for strong corn and wheat plantings driven by high prices for these nitrogen-intensive crops. Clearly, with our fundamental drivers aligning favorably, we remain quite positive about our outlook for the rest of this year and the 2008 first half.”

* Sales volumes in thousand short tons.