Sioux City-Terra Industries Inc. reported net income available to common shareholders of $5 million ($.05 per diluted share) on sales of $523.5 million for the second quarter ending June 30, 2006, compared to the year-ago $20.4 million ($.20 per share) and $490 million, respectively. While second quarter ammonia and urea prices were higher, natural gas prices were higher. UAN prices were lower, and the company said expenses due to the explosion at an ammonia facility at Billingham, England, were $7.5 million for repairs and to replace the ammonia. “As we expected, second quarter sales volumes approximated last year’s and we managed the business to end the quarter with similar inventory volumes,” said Terra President and CEO Michael Bennett. “Unfortunately, the decline in nitrogen market prices over the last half of the quarter adversely impacted margins, as did the cost of inventory carried over from the first quarter.” Bennett said demand through 2007 appears promising, citing low grain inventories, driven in part due to increased ethanol production. Terra was in the loss column for the first six months at $20.3 million ($.22 per share) on sales of $922.4 million, versus the year-ago positive $23.6 million ($.26 per share) and $940 million.
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