Terra Industries Inc. reported net income of $641.0 million ($6.20 per diluted share) for the year ending Dec. 31, 2008, more than double the highest annual earnings per share in Terra history.

“Terra delivered strong fourth quarter results in a difficult environment, and the best full-year results in the company’s more-than-40-year history,” said Terra President and CEO Michael Bennett.

Total revenues were $2.9 billion, with 2007 net income of $201.9 million ($1.90 per share) on sales of $2.34 billion. The 2007 revenues included $319.1 million from Terra’s U.K. operations that were later contributed to a joint venture. Excluding 2007 U.K. results, revenues increased $867.7 million from 2007 to 2008, mostly due to higher nitrogen selling prices. Ammonia, UAN, and AN selling prices increased 64, 48, and 38 percent, respectively, over those for 2007. North American sales volumes for ammonia and UAN decreased by 5 and 4 percent, respectively, while AN sales volumes increased by 2 percent.

Fourth-quarter results were also up, also mainly due to higher prices. Net income was $164.7 million ($1.65 per share) on sales of $683.5 million, versus the year-ago $69.6 million ($.66 per share) and $569 million, respectively. Ammonia, UAN, and AN prices increased 80, 45, and 37 percent, respectively, over the year-ago quarter. North American ammonia, UAN, and AN sales volumes decreased 30, 16, and 12 percent, respectively, from year-ago levels, due primarily to the global economic slowdown and customers’ reluctance to commit to timely purchases.

Terra said its North American nitrogen joint ventures, which mainly include its Trinidad jv with Koch Industries, provided earnings of about $11 million in the fourth quarter and $56 million for the year.

Terra said that due to fourth-quarter pricing pressures and production curtailments, it recorded $49.8 million in charges related to derivative and inventory valuations. Terra idled its Donaldsonville, La., and Woodward, Okla., plants to make repairs and manage inventories in December. The monthly cash costs to maintain these facilities during idled periods were $700,000 for Donaldsonville and $1.1 million for Woodward. The Woodward plant is preparing for startup this week.

Bennett told analysts the company is breaking ground this month on its 500,000 st/y UAN expansion at Woodward. Startup is expected in 2010.

Terra said its Yazoo City, Miss., ammonia plant is currently undergoing a turnaround. Other turnarounds expected in 2009 include one-half of Verdigris, Okla., and the Courtright, Ont., urea plant.

Bennett said fundamentals are improving. “Nitrogen prices have started to recover from the lows of the late fourth quarter and natural gas price forecasts for the next 12 months are at five-year lows. If this combination continues, it will position Terra for strong margins as we head into the second quarter.”

“The nitrogen supply/demand picture, which was disrupted by slow fall nitrogen movement due to a late harvest and wet soil conditions, also appears to be coming into balance,” added Bennett. “While some economists are forecasting a 3 percent reduction in U.S. planted corn acres this spring, that reduced demand could be more than offset by the estimated 5 percent nitrogen applications that growers missed this last fall and will be looking to make up this spring. Continuing domestic and global nitrogen production curtailments and low U.S. import volumes also underpin this positive nitrogen supply/demand balance outlook.”

“Looking further ahead, if indeed planted corn acres are reduced this spring, it will likely cause corn inventories to slip lower, creating a stronger outlook for the 2009 second half and 2010 first half.”

Bill Whitacre has been named chief executive officer-elect of the J.R. Simplot Co.

Following a transition period, he will succeed Larry Hlobik, who has announced his intentions to retire after serving the past seven years as president and CEO.

Whitacre, 55, joined Simplot in March 2000 as president of the company’s turf and horticulture business. In 2002, he was appointed president of the Simplot AgriBusiness Group.

Whitacre has more than 30 years experience in the agriculture industry. Prior to joining Simplot, he was president & CEO of Research Seeds, Inc., a Land O’Lakes subsidiary.

Whitacre currently serves as a board member of The Fertilizer Institute, International Plant Nutrition Institute, Nutrients for Life Foundation, and Farm Foundation. He is a past president of the American Seed Trade Association, Western Seed Association, and North American Seed Institute.

Scott Simplot, Simplot chairman of the board, said Whitacre was one of several internal candidates considered for the position.

“The Board expressed every confidence in Whitacre’s ability to lead the company in the years ahead,” said Simplot. “He is an effective and visionary leader.”

As president of the Simplot Agribusiness Group, Whitacre has spearheaded strategies centered on development of new products, new services, and expansion into new geographies. The Agribusiness Group also established new competencies around fertilizer imports under Whitacre’s leadership.

“I am honored and excited to step into this position,” said Whitacre. “The agriculture industry has significant global opportunities. Our integrated business model positions us well to compete effectively and fulfill on our mission statement of responsibly “Bringing Earth’s Resources to Life.”

Hlobik will retire after an 11-year career with the J.R. Simplot Co., the past seven years as CEO. He joined Simplot in 1998 as president of the minerals and chemicals group. During his tenure, the company said Hlobik strengthened and solidified the company’s competitive position, with annual revenues increasing from approximately $3 billion dollars to about $4.5 billion today.

“Bill’s leadership within our AgriBusiness Group added fundamental strength to our overall business portfolio,” said Hlobik, “I am looking forward to working through this transition with him.”

Whitacre will be Simplot’s sixth CEO and president since company founder Jack Simplot retired in 1973.

The J.R. Simplot Co. is a privately-held agribusiness firm headquartered in Boise, Idaho, with an integrated portfolio that includes phosphate mining, fertilizer manufacturing, farming, ranching and cattle production, food processing, food brands, and other enterprises related to agriculture. Simplot’s major operations are in the U.S., Canada, Mexico, Australia, New Zealand, and China, with products marketed in over 40 countries worldwide.