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.
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