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TERRA INDUSTRIES ANNOUNCES FIRST QUARTER RESULTS AND APRIL SALES

 SIOUX CITY, Iowa, May 4 /PRNewswire/ -- Terra Industries Inc. (NYSE: TRA) today reported a 1993 first quarter loss from continuing operations of $8.7 million, or $0.13 per share, on revenue of $167.1 million, compared with a 1992 first quarter loss of $5.3 million, or $0.07 per share, on revenue of $195.4 million. Terra's first quarter generally results in a loss due to the low seasonal demand for its crop production products. The increased loss in 1993 stems from lower sales in the quarter as a result of inclement weather, which precluded field work across most of Terra's market area.
 While delayed field activity had a negative impact on Terra's retail sales, the wholesale business was strong as dealers prepared for the planting season. Manufactured fertilizer sales were up $4.6 million, or 16 percent, in the quarter, reflecting increased demand for the upgraded products needed in a short planting season. Distribution sales were down $31.8 million, or 19 percent, from 1992's first quarter, mainly at the retail level as a result of the delay in planting activity.
 Terra will report revenue on a monthly basis for its second quarter, since more than 50 percent of the company's sales of fertilizers, agricultural chemicals and seed occurs during this period. April revenue from Terra's Distribution business was $137.5 million, down 19 percent from $170.6 million in April 1992. Manufactured fertilizer revenue for April (excluding revenue of $6.7 million from the Canadian manufacturing operation) improved to $17.5 million, up from $16.5 million in 1992.
 Commenting on the results to date, Terra President and CEO, Burton M. Joyce, said, "While this was a slower first quarter than we have experienced in
the past two years, we don't believe it should cause concern. Planting has finally begun in earnest, and we anticipate a good second quarter. As a result of the late planting start, Terra could see some usual second quarter sales occur in our third quarter. The Canadian acquisition will begin contributing to second quarter earnings, and, with a strong cash balance, Terra is in an excellent position to continue expanding the company's operations. Of note is our expectation of a reduction in our effective income tax rate from 43 percent in 1992 to 30 - 32 percent for 1993 as a result of the expected utilization of capital loss carryforwards.
 "The cost of natural gas is a concern. If current NYMEX gas future prices are sustained, Terra will incur substantial natural gas cost increases for 1993. Gas prices, however, have fluctuated greatly, and it is not possible to determine the price levels for the rest of the year or the impact of price increases on earnings."
 Terra Industries Inc., with 1992 revenue over $1 billion, is a leading marketer and producer of fertilizer, crop protection products, seed and services for agriculture.
 TERRA INDUSTRIES INC.
 Summarized Results of Operations
 (Unaudited, in thousands, except per share amounts)
 Three months ended March 31 1993 1992(A)
 Revenues:
 Manufactured fertilizer $ 32,787 $ 28,223
 Resale fertilizer 29,184 34,990
 Chemicals 91,365 113,876
 Seed 9,125 13,484
 Other 4,649 4,854
 Total $167,110 $195,427
 Operating (loss) $ (9,180) $ (6,339)
 Corporate and unallocated expenses (1,289) (1,351)
 Interest income 1,066 1,069
 Interest expense (3,077) (2,609)
 Income tax (provision) credit 3,744 3,937
 Loss from cont. operations
 before cumulative effect
 of accounting changes (8,736) (5,293)
 Discontinued operations -- (608)
 Loss before cumulative effect of
 accounting changes (8,736) (5,901)
 Cumulative effect of
 accounting changes -- 22,265
 Net income(loss) $ (8,736) $ 16,364
 Weighted average shares
 outstanding for the period 69,055 68,945
 Income(loss) per share:
 Continuing operations $ (0.13) $ (0.07)
 Discontinued operations -- (0.01)
 Cum. effect of acctg. changes -- 0.32
 Net income(loss) per share $ (0.13) $ 0.24
 (A) -- Restated for reclassification of discontinued operations and changes in accounting principles
 Because of the seasonal nature of the agribusiness segment and effects of weather-related conditions in several of its marketing areas, earnings of any single reporting period should not be considered indicative of results for a full year.
 TERRA INDUSTRIES INC.
 Summarized Financial Position
 (Unaudited, in thousands)
 March 31 1993 1992
 Assets: (A)
 Cash and short-term investments $ 92,735 $ 79,698
 Other current assets 484,321 408,814
 Total current assets 577,056 488,512
 Property, plant and equipment, net 95,386 112,233
 Other assets 58,667 78,355
 Total assets $731,109 $679,100
 Liabilities and
 Stockholders' Equity
 Debt due within one year $ 32,251 $ 37,219
 Other current liabilities 336,296 291,198
 Total current liabilities 368,547 328,417
 Long-term debt 120,111 104,845
 Other liabilities 29,706 39,173
 Total liabilities 518,364 472,435
 Stockholder's Equity 212,745 206,665
 Total liabilities and
 stockholders' equity $731,109 $679,100
 (A) -- Includes acquisition of Canadian nitrogen products manufacturing and farm service centers distribution business.
 -0- 5/4/93
 /CONTACT: Paula Norton of Terra Industries, Inc., 712-277-5438/
 (TRA)


CO: Terra Industries Inc. ST: Iowa IN: CHM SU: ERN

TS -- NY016 -- 4233 05/04/93 10:31 EDT
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Date:May 4, 1993
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