Terra Ind. reports $101.4 M in 1Q net income

Sioux City-Terra Industries Inc. reported net income of $101.4 million ($.97 per diluted share from continuing operations) on sales of $574.7 million for the first quarter ending March 31, 2008, versus the year-ago $7.2 million ($.08 per share) and $500.9 million, respectively. Operating income moved up to $168.3 million from the year-ago $67.2 million. The improved results were mainly due to higher nitrogen prices. The 2007 revenues included $89.9 million from Terra’s UK operations that were later contributed to the GrowHow UK joint venture. Excluding the UK 2007 results, revenues increased $163.7 million from the 2007 to the 2008 first quarter. Ammonia , UAN, and ammonium nitrate selling prices increased 40, 55, and 37 percent, respectively, over the year-ago period. North American sales volumes for ammonia increased by 3 percent, while sales volumes for UAN and AN decreased by 2 and 8 percent, respectively. These volumes were off due to delayed movement caused by cool, wet weather. First-quarter equity earnings from the company’s stake in the GrowHow jv were $9.3 million. Terra has excluded UK sales volumes and prices from its 2007 statistical totals for a more accurate comparison with 2008.

Terra Ind. Production

* Volumes in thousands.