Richmond-While urban sprawl has been a factor in the closure of some Southern States Cooperative outlets, it has not caused a crisis, according to Jim Erickson, spokesman for the cooperative. Erickson recently responded to an Associated Press story that indicated that the cooperative was hard hit by urban sprawl. The story noted that Southern States ended fiscal 2000 with 327 stores and has only 212 today, a drop of 115 locations. Erickson said that the vast majority of those closures were years old and related to restructuring of operations to reduce debt, cut costs, and consolidate facilities acquired as a part of the purchase of the Gold Kist farm supply business. Southern States turned the restructuring corner more than two years ago, said Erickson. The AP story arose from a Martinsville, W. Va., location that recently closed due to the encroaching residential and commercial development and a decline in its agricultural customer base. Southern States has also closed stores in Vienna and Herndon, Va., in the D.C. metropolitan area. More recently, Southern States opened a new location in Ronceverte, W. Va. Erickson said the company has also remodeled a number of stores and is in the midst of remodeling more to serve its changing customer base. Erickson said the remodeling and upgrades will continue as it moves forward.

Oklahoma City-LSB Industries Inc. reports that a preliminary estimate of consolidated sales for calendar year 2006 is $491 million, up 23.7 percent from 2005’s $397 million. Sales for 2006 by the Climate Control segment are estimated at $221 million, up 40.8 percent from $157 million in 2005, while sales by the Chemical segment are estimated at $260 million, an 11.6 percent improvement from 2005’s $233 million. Final results are expected to be issued around March 15, 2007. In other news, LSB can’t bank on the $9.8 million its subsidiary El Dorado Chemical Co. (EDC) was awarded by a jury last October (GM Oct. 23, p. 10), as the defendants, Ingersoll-Rand Co. and DR Holding Corp., general partners of Dresser Rand Co., have filed a notice of appeal with the Circuit Court of Union County, Ark. They have also posted as security for the judgment a supersedeas bond in the amount of $10.78 million. EDC has also filed a notice of cross appeal regarding the failure to award prejudgment interest on the judgment amount.

Sioux City-Terra Industries Inc. said Jan. 24 that it expects 2006 fourth-quarter revenues to be approximately 5 percent lower than its 2006 third-quarter revenues of $464.8 million. The decline is mostly due to lower methanol revenues. Terra also reported that it expects 2006 fourth-quarter operating income to be higher than third-quarter operating income. The expected increase in operating income is largely due to higher gross profits per ton for Terra’s major fertilizer products – ammonia, UAN solutions, and ammonium nitrate – than those realized during the third quarter. Terra’s estimated fourth-quarter net income approximates that of the preceding quarter, as higher income tax expenses offset most of the operating income change. The projected increase to income taxes is due to fourth-quarter changes in foreign exchange rates that reduce the value of Terra’s net operating loss carry forwards. Terra expects to finalize its preliminary results and report fourth-quarter financial results on Feb. 8, 2007.

Memphis-Archer Daniels Midland’s American River Transportation Co. became entangled in the second runaway barge incident in less than a week when several barges, including an unspecified number of fertilizer barges, broke loose from their towboat on the Mississippi early on Jan. 20. The Coast Guard at the Lower Mississippi Sector said no product was lost from the 32-barge fleet, and no injuries occurred. Lt. Leon McClain said none of the barges sank, but a few sustained structural damage after striking one of two rail spans near the Memphis-Arkansas bridge, which carries Interstate 55 traffic across the river. The bridge was not damaged, and barge repairs were made on the scene. McClain said the Coast Guard office put out alerts to river traffic and that no serious backups occurred during the day. He said Coast Guard personnel joined forces with a number of commercial operators to round up the errant barges and get them on their way. Meanwhile, salvage operations are continuing on the Ohio River at Louisville, Ky., where four barges in a 14-barge fleet broke loose early Jan. 16, leaving a fertilizer carrier jammed up between two gates at McAlpine dam and a salt barge under water (GM Jan. 22, p. 11). The Ohio Valley sector Coast Guard reported that salvage crews think they can refloat the sunken unit, but will have to cut the fertilizer barge, which lost all its liquid fertilizer load, in two, and lift out the two pieces separately with a crane.

Plymouth, Minn.-The Mosaic Co. said Jan. 23 that it will be releasing its earnings for the fiscal 2007 second quarter on Jan. 29. The company had earlier delayed the release of the earnings and filings with the Securities Exchange Commission due to a new enterprise resource planning system (GM Jan. 15, p. 11).

Aurora, N.C.-The comment period for the expansion of the PCS Phosphates mine (GM Jan. 15, p. 10) has been extended to Feb. 7. Comments may be sent to Corps’ Wilmington District, Regulatory Division, Attention: File Number 2001-10096, P.O. Box 1890, Wilmington, N.C. 28402-1890. For more information, contact Tom Walker at 828-271-7980, ext. 222.

Washington-USDA on Jan. 12 reported that the 2006 corn-for-grain crop in the U.S. came in at 10.5 billion bushels, down 2 percent from earlier estimates and 5 percent lower than the 2005 crop. The 2006 crop remains the third largest on record, however, with average yields estimated at 149.1 bushels/acre, down 2.1 bu/a from earlier forecasts and 1.1 bu/a higher than in 2005. USDA said 70.6 million acres of corn were harvested in 2006, down 6 percent from 2005. U.S. soybean production in 2006 totaled 3.19 billion bushels, from a record high 74.6 harvested acres, USDA said, the largest U.S. soybean crop on record and 4 percent above the 2005 crop. Average soybean yields in 2006 were estimated at 42.7 bu/a, below earlier forecasts and down as well from last year’s record high. All U.S. cotton production in 2006 was estimated at 21.7 million bales, up 2 percent from earlier predictions, but down 9 percent from 2005’s record high production. Average U.S. cotton yields were placed at 819 lbs/a, down 12 lbs/a from the previous year. USDA said cotton production and yield were the third largest on record, while harvested area came in at 12.7 million acres, down 8 percent from last year. U.S. rice production in 2006 was estimated at 194 million cwt, down 13 percent from 2005. Planted and harvested area for cotton, at 2.84 million acres and 2.82 million acres, respectively, were down 16 percent from last year’s crop. Average yields for all U.S. rice were estimated at 6,868 lbs/a, 232 lbs/a above the 2005 yield. Sorghum grain production in 2006 was estimated at 278 million bushels, down 4 percent from earlier estimates and 29 percent below 2005. Planted area to sorghum grain came in at 6.52 million acres, up 1 percent from last year, while area harvested for grain was down 14 percent from 2005 at 4.94 million acres. Average sorghum grain yields, at 56.2 bu/a, were up 2.0 bushels from the previous forecast, but down 12.3 bushels from last year.

Regina-Saskatchewan Wheat Pool Inc. has added a cash component to its offer for Agricore United Ltd., using two offerings totaling $195 million to raise the money. Under the revised common share offer, AU’s limited voting common shareholders may elect to receive, for each AU common share tendered, $11.33 in cash, 1.3601 SaskPool common shares, or any combination thereof, in each case subject to pro ration. The amount of cash to be paid to AU common shareholders will be approximately $178 million, and the number of Pool common shares to be issued will be approximately 59 million. Assuming full pro ration of these amounts, the result would be $3.00 in cash and 1.0 SaskPool common share for each Agricore common share. SaskPool has also extended its offers for AU common shares and Series A convertible preferred shares to March 7 at 5:00 p.m. Toronto time. AU redeemed all of its 9 percent convertible unsecured subordinated debentures in exchange for limited voting common shares. As a result, SaskPool’s offer for Agricore’s convertible debentures will not be extended. The Canadian Competition Bureau will extend its review into February. U.S. Department of Justice authorities also indicated a need for more time. As a result, SaskPool withdrew the Hart-Scott-Rodino notice and refiled it so that an additional 30-day review period would be available. AU shareholders will receive a revised circular.