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TERRA NARROWS SEASONAL THIRD QUARTER LOSS

 TERRA NARROWS SEASONAL THIRD QUARTER LOSS
 SIOUX CITY, Iowa, Oct. 20 /PRNewswire/ -- Terra Industries Inc.


(NYSE: TRA) today announced a narrowed seasonal third quarter loss from continuing operations of $6.4 million, or $0.09 per share, compared with a $8.5 million loss, or $0.13 per share, in third quarter 1991. Net interest and corporate expense reductions, totaling $2.8 million for the quarter, were the primary reasons for the improvement. The 1991 third quarter net loss was $3.4 million, or $0.05 per share, including an extraordinary gain on early retirement of debentures of $5.1 million, or $.08 per share. Terra's revenues increased to $202.5 million for the 1992 quarter from $194.6 million in the 1991 period.
 Continued growth in chemical sales and margins enabled Terra's distribution operations to reduce seasonal operating losses in the third quarter to $5.3 million in 1992 from $6.3 million in the 1991 period. Distribution revenues for the quarter were $171.2 million, compared with $158.9 million in the third quarter of 1991.
 Operating income from third quarter sales of Terra-manufactured nitrogen fertilizers declined from $2.6 million in 1991 to a $0.4 million loss in the 1992 quarter. The change is primarily due to a two week delay starting up the company's Iowa plant after a planned maintenance shut-down in August. The delay resulted in $2.5 million in additional expenses and lower inventories available for sale during the quarter. Third quarter revenues from manufactured fertilizers declined from $23.4 million in 1991 to $19.4 million in 1992.
 President and CEO Burton M. Joyce, commented: "Although our extended shut-down and subsequent start-up problems increased our expenses and reduced sales this quarter, we will reap the benefits of the resulting 200 ton per day capacity increase for years to come. And, as prices for natural gas rise, the efficiency improvements made during the shut-down are especially welcome." Joyce continued, "We estimate our energy costs will rise $3 - 4 million this quarter, compared to last year's levels. The net effect of this cost increase on our manufactured fertilizer margins will depend on price levels in the market; however, at this time, we expect lower margins than in the fourth quarter of 1991."
 For the first nine months, 1992 income from continuing operations increased 69 percent to $35.2 million, or $0.51 per share, compared with $20.9 million, or $0.31 per share, in the 1991 period. With a $170 million loss on the 1991 sale of the company's base metals business, Terra's nine month net loss in 1991 was $148.8 million, or $2.24 per share. Revenues through September totaled $999.3 million in 1992, up from $946.0 million in the 1991 period. Terra Industries Inc. is a leading marketer and producer of fertilizer, crop protection products, seed and services for agriculture. It also produces construction materials and leases equipment.
 TERRA INDUSTRIES INC.
 Summarized Results of Operations
 (In thousands, except per share amouts, unaudited)
 Periods ended Three Months Ended Nine Months Ended
 Sept. 30
 1992 1991 1992 1991
 Revenues
 Agribusiness:
 Manufactured fert. $ 19,448 $ 23,405 $ 92,962 $ 94,744
 Resale fertilizer 23,595 23,939 193,217 204,749
 Chemicals 138,131 122,934 613,255 550,274
 Seed 1,885 2,584 46,850 42,495
 Other 7,665 9,989 28,062 26,524
 Total agribusiness $190,724 $182,851 $974,346 $918,786
 Other business segments 11,784 11,795 24,945 27,211
 $202,508 $194,646 $999,291 $945,997
 Operating income (loss) $ (3,775) $ (2,605) $ 47,439 $ 40,785
 Equity in (losses)
 income of and liquidating
 distributions from
 unconsolidated affiliates -- (250) (255) 1,510(a)
 Corporate and unallocated
 expenses (1,111) (2,261) (3,772) (6,985)
 Interest income 739 685 2,434 1,083
 Interest expense (2,379) (3,981) (8,069) (13,139)
 Income tax benefit
 (provision) 172 (72) (2,554) (2,391)
 Income (loss) from
 continuing operations and
 before extraordinary gain (6,354) (8,484) 35,223 20,863
 Discontinued operations -- -- -- (174,827)
 Extraordinary gain on
 debt retirement - 5,115 - 5,115
 Net income(loss) $ (6,354) $ (3,369) $ 35,223 $(148,849)
 Weighted average shares
 outstanding for
 the period 69,090 66,799 69,089 66,459
 Income(loss) per share:
 Continuing operations $ (0.09) $ (0.13) $ 0.51 $ 0.31
 Discontinued operations - - - (2.63)
 Extraordinary gain - 0.08 - 0.08
 Net income(loss)
 per share $ (0.09) $ (0.05) $ 0.51 (2.24)
 (a) Includes $2.0 million liquidating distribution from gold affiliate.
 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
 (In thousands, unaudited)
 Period Ended Sept. 30 1992 1991
 Assets
 Cash and short-term investments $ 70,456 $ 69,233
 Other current assets 356,250 305,868
 Total current assets 426,706 375,101
 Property, plant and equipment, net 114,375 111,670
 Other assets 46,940 48,982
 Total assets $588,021 $535,753
 Liabilities and Stockholders' Equity
 Debt due within one year $ 43,036 $ 38,566
 Other current liabilities 189,999 178,023
 Total current liabilities 233,035 216,586
 Long-term debt 101,939 107,741
 Other liabilities 27,398 18,329
 Total liabilities 362,372 342,659
 Stockholder's Equity 225,649 193,094
 Total liabilities and
 stockholders' equity $588,021 $535,753
 -0- 10/20/92
 /Contact: Ellen Duerksen of Terra Industries, 712-277-5438/
 (TRA) CO: Terra Industries Inc. ST: Iowa IN: SU: ERN


TM -- NY005 -- 2097 10/20/92 10:01 EDT
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Date:Oct 20, 1992
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