Deerfield, Ill.-Terra Industries Inc. reported net income of $54.9 million ($.47 per diluted share) on sales of $408.9 million for the first quarter ending March 31, 2010, up from the year-ago $37.9 million ($.30 per diluted share) on sales of $419.7 million. Net income attributable to common shareholders was $46.7 million, down from $30 million. “Terra achieved this improved net income despite lower nitrogen selling prices, due to lower feedstock costs and significantly improved sales volumes, including an increase in sales to industrial customers as the overall economy continued to recover,” said Anthony Nocchiero, CF Industries Holdings Inc. senior vice president and CFO, on an analyst call. Overall, sales volumes were up 27 percent during the quarter, compared to 1Q 09, but prices were down 22 percent. UAN and ammonium nitrate both saw huge volume increases. UAN volumes were 837,000 st on average selling prices of $184/st, compared to the year-ago 625,000/st and $282/st. AN volumes were 296,000 st and $193/st, versus the year-ago 168,000 st and $267/st. Urea volumes were 82,000 st and $325/st, versus the year-ago 77,000 st and $322/st, while ammonia volumes were down slightly, to 374,000 st and $314/st from 381,000 st and $336/st. First-quarter natural gas prices dropped to $5.39/mmBtu from the year-ago $7.37/mmBtu.
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