Printer Friendly

TERRA INDUSTRIES REPORTS IMPROVED THIRD QUARTER RESULTS YEAR-TO-DATE EPS FROM CONTINUING OPERATIONS INCREASE 52 PERCENT

 SIOUX CITY, Iowa, Oct. 26 /PRNewswire/ --Terra Industries Inc. (NYSE: TRA) today reported a narrowed seasonal loss from continuing operations of $2.5 million, or $.04 per share, in the 1993 third quarter on revenues of $250.5 million, compared with a $5.0 million loss, or $.07 per share, on revenues of $190.7 million in the third quarter of 1992. Increased chemical sales as a result of the later-than-normal growing season and earnings from the Canadian distribution operations acquired in April of this year were the primary reasons for the improvement.
 For the first nine months of 1993, net income from continuing operations before the cumulative effect of accounting changes was up 52 percent to $28.4 million on revenues of $1.1 billion. The Canadian acquisition contributed $7.6 million in net income on revenues of $63.2 million. Earnings per share for the first nine months of 1993 were $.41, up from $.27 a year ago.
 In the third quarter, Terra's distribution operations broke even compared with a $5.2 million loss in the comparable 1992 quarter. Increased sales in July due to the late season and the impact of the Canadian acquisition's distribution operations accounted for most of the improvement. Distribution revenues for the quarter were $210.3 million, compared with $171.2 million in the third quarter of 1992. For the nine-month period, operating income from the distribution business was $31.3 million in 1993 on revenues of $920.4 million, up from $27.8 million on revenues of $884.5 million in 1992.
 Third quarter operating income from Terra's manufactured fertilizer business was $.1 million, compared with a $.3 million loss in the 1992 third quarter. Extended maintenance shutdowns during the third quarter at Terra's Ontario plant in 1993 and its Iowa plant in 1992 negatively impacted performance. Third quarter revenues from manufactured fertilizers increased to $41.5 million from $19.5 million in 1992; $15.9 million of the increase was contributed by the Ontario plant. For the first nine months of 1993, operating income from manufactured fertilizer was $21.4 million on sales of $162.0 million, compared with $14.5 million on sales of $93.1 million in the 1992 third quarter.
 According to Burton M. Joyce, president and CEO, "This year is proving to be an excellent one for Terra. Sales of both pesticides and fertilizer have been strong, despite the slow start to the planting season, and the rain and flooding in parts of the Midwest. We're particularly pleased to see the growth in sales of Terra's own Riverside(R) brand of pesticides. Riverside's annual sales exceeded the $100 million mark for the first time during the quarter."
 Terra Industries Inc., with 1992 revenues 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
 (In thousands, except per share amounts)
 (unaudited)
 Three Months Ended Nine Months Ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 (1) (1)
 Revenues
 Manufactured fert. $41,308 $19,448 $161,779 $92,956
 Resale fert. 30,451 23,595 203,090 193,216
 Chemicals 164,311 138,131 632,806 613,255
 Seed 3,762 1,885 45,825 46,850
 Other 10,632 7,665 27,305 28,069
 -- $250,464 $190,724 $1,070,805 $974,346
 Operating income (loss) $172 $(5,978) $51,925 $41,826
 Corporate and
 unallocated exp. (1,279) (1,109) (5,256) (3,754)
 Interest income 724 738 2,592 2,434
 Interest expense (3,238) (2,285) (9,890) (7,821)
 Income tax benefit (provision) 1,155 3,664 (11,000) (13,961)
 Income (loss) from cont.
 ops. before effect
 of accounting changes (2,466) (4,970) 28,371 18,724
 Discontinued operations - (1,554) - (3,606)
 Income (loss) before cum.
 effect of accounting changes (2,466) (6,524) 28,371 15,118
 Cumulative effect of
 accounting changes - - - 22,265
 Net income (loss) $(2,466) $(6,524) $28,371 $37,383
 Weighted average shares
 outstanding for the period 69,067 69,090 69,046 69,089
 Income(loss) per share:
 Continuing operations $(0.04) $(0.07) $0.41 $0.27
 Discontinued operations - (0.02) - (0.05)
 Cum. effect of acctg. changes - - - 0.32
 Net income (loss) per share $(0.04) $(0.09) $0.41 $0.54
 (1) Restated for reclassification of discontinued operations and changes in accounting principles.
 Because of the seasonal nature of agribusiness and effects of weather-related conditions in several 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
 (In thousands)
 (unaudited)
 Sept. 30,
 1993 1992
 Assets
 Cash and short-term investments $ 64,167 $ 70,456
 Other current assets 452,538 374,603
 Total current assets 516,705 445,059
 Property, plant and equipment, net 97,811 114,375
 Other assets 51,376 46,940
 Total assets $665,892 $606,374
 Liabilities and
 Stockholders' Equity
 Debt due within one year $ 13,058 $ 43,036
 Other current liabilities 254,242 195,001
 Total current liabilities 267,300 238,037
 Long-term debt 119,119 101,939
 Other liabilities 30,248 38,572
 Total liabilities 416,667 378,548
 Stockholders' equity 249,225 227,826
 Total liabilities and
 stockholders' equity $665,892 $606,374
 -0- 10/26/93
 /CONTACT: Paula C. Norton of Terra Industries, 712-277-5438/
 (TRA)


CO: Terra Industries ST: Iowa IN: AGR SU: ERN

AL-DS -- MN008 -- 6821 10/26/93 10:43 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 26, 1993
Words:920
Previous Article:AUDIO KING CORPORATION ANNOUNCES RECORD FIRST QUARTER RESULTS
Next Article:NATIONAL TIRE SERVICES ANNOUNCES BAKER SOUTHWEST CONTRACT
Topics:

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters