Terra 2Q income off 60 percent; Donaldsonville likely to restart in August

Terra Industries Inc.’s net income available to common shareholders was off 60 percent to $80.4 million ($.81 per diluted share) on sales of $453.5 million for the second quarter ending June 30, 2009, compared to the year-ago $202.2 million ($1.94 per share) and $843.1 million, respectively. Both decreased volumes and prices contributed to the drop.

Six-month income was $110.4 million ($1.11 per share) on sales of $873.2 million, down from the year-ago $302.3 million ($2.91 per share) on sales of $1.42 billion.

Terra President and CEO Michael Bennett said the company will likely restart its Donaldsonville, La., ammonia plant in August due to higher Gulf pricing and order activity.

Other positives were healthy agricultural demand, with an unexpectedly large corn crop, which Bennett believes, along with reduced imports, has significantly reduced supply chain inventories. Others were stronger nitrogen prices and lower natural gas prices. Factors that may temper third-quarter results would be Donaldsonville being offline for part of it as well as the unknown timing for the recovery of industrial demand, which has been weak.

Terra also declared a dividend of $.10 per common share, payable Sept. 10, to holders of record as of Aug. 20.