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TERRA REPORTS 24 PERCENT INCREASE IN SECOND QUARTER INCOME; 42 PERCENT INCREASE FOR FIRST SIX MONTHS

 TERRA REPORTS 24 PERCENT INCREASE IN SECOND QUARTER INCOME;
 42 PERCENT INCREASE FOR FIRST SIX MONTHS
 SIOUX CITY, Iowa, July 21 /PRNewswire/ -- Terra Industries Inc. (NYSE: TRA), formerly Inspiration Resources Corporation, today reported second quarter income from continuing operations rose 24 percent to $49.7 million, or $0.72 per share, compared with $39.9 million, or $0.60 per share, in second quarter 1991.
 The improvement reflects a $6.5 million increase in operating income, and reductions in corporate and net interest expenses of $3.7 million. The 1991 second quarter net loss was $129.9 million, or $1.96 per share, which included a $170.0 million loss on the sale of the company's base metals business. Terra's revenues for the 1992 quarter increased 6 percent to $597.0 million, from $564.7 million in the 1991 period. Terra customarily records more than half its revenues in the second quarter due to peak seasonal demand for its products and services.
 Terra President and CEO Burton M. Joyce commented: "During 1992 we have been able to improve the fundamental profitability of our core business with no growth in the underlying asset base. Our strong balance sheet, with over $80 million in cash and reduced debt, provides the basis for building both the size and profitability of Terra in the future."
 Terra's distribution operations produced $45.4 million in 1992 second quarter operating income, a 24 percent increase from $36.7 million in the 1991 period. The improvement is primarily due to higher margins and sales volumes of agricultural chemicals, partially offset by a decline in wholesale phosphate and potash fertilizer sales. Distribution revenues for the quarter were $546.3 million, compared with $512.2 million in the 1991 period.
 Sales of Terra-manufactured fertilizers-anhydrous ammonia, urea and nitrogen solutions-generated $9.6 million in operating income during the 1992 second quarter, down from $12.0 million in the 1991 quarter. A 2 percent decline in average selling prices and a small increase in manufacturing costs, compared with the 1991 period, were the primary reasons for reduced operating income levels. Second quarter revenues from manufactured fertilizer were $45.4 million, compared with $46.5 million in the 1991 quarter.
 For the first six months, 1992 income from continuing operations increased 42 percent to $41.6 million, or $0.60 per share, compared with $29.3 million, or $0.44 per share, in the 1991 period. With losses from the base metals business sale, Terra's 1991 net loss in the first six months was $145.5 million, or $2.19 per share. Revenues through June totaled $796.8 million in 1992, up from $751.4 million in the 1991 period.
 Terra Industries Inc., with 1991 revenues of over $1 billion, 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 amounts)
 (Unaudited)
 Three Months Ended Six Months Ended
 June 30, 1992 June 30, 1992
 1992 1991(A) 1992 1991(A)
 Revenues
 Agribusiness:
 Manufactured fert. $ 45,289 $ 46,460 $ 73,513 $ 71,340
 Resale fertilizer 134,633 142,124 169,622 180,809
 Chemicals 361,247 327,308 475,124 427,340
 Seed 31,481 25,579 44,965 39,911
 Other 15,545 13,816 20,398 16,535
 Total agri-
 business 588,195 555,287 783,622 735,935
 Other business
 segments 8,804 9,401 13,161 15,416
 Total 596,999 564,688 796,783 751,351
 Operating income 56,311 49,771 51,214 43,390
 Equity in (losses)
 income of and liquidating
 distributions from
 unconsolidated affiliates (62) (117) (255) 1,760(B)
 Corporate and unallocated
 expenses (1,305) (2,557) (2,661) (4,724)
 Interest income 624 26 1,695 398
 Interest expense (3,025) (4,859) (5,690) (9,158)
 Income tax provision (2,876) (2,341) (2,726) (2,319)
 Income from
 continuing operations 49,667 39,923 41,577 29,347
 Discontinued operations -- (169,832)(A) -- (174,827)(A)
 Net income (loss) $ 49,667 $(129,909) $ 41,577 $(145,480)
 Weighted average shares
 outstanding for
 the period 69,146 66,285 69,099 66,285
 Income (loss) per share:
 Continuing operations $0.72 $ 0.60 $0.60 $ 0.44
 Discontinued operations -- (2.56) -- (2.63)
 Net income (loss)
 per share $0.72 $(1.96) $0.60 $(2.19)
 (A) -- Results have been restated for discontinued operations. Loss from discontinued operations includes the results of the base metals business which was sold in 1991.
 (B) -- 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)
 June 30,
 1992 1991
 Assets
 Cash and short-term investments $ 83,786 $ 19,479
 Other current assets 421,017 505,445(a)
 Total current assets 504,803 524,924
 Property, plant and equipment, net 113,836 113,532
 Other assets 46,214 49,729
 Total assets $664,853 $688,185
 Liabilities and
 Stockholders' Equity
 Debt due within one year $ 7,120 $ 61,585
 Other current liabilities 293,004 278,704
 Total current liabilities 300,124 340,289
 Long-term debt 105,086 142,340
 Other liabilities 27,757 20,252
 Total liabilities 432,967 502,881
 Stockholder's equity 231,886 185,304
 Total liabilities and
 stockholders' equity $664,853 $688,185
 (A) -- Includes net amounts receivable of $118,059 from sales of the base metals business and leased rail assets.
 -0- 7/21/92
 /CONTACT: Ellen Duerksen of Terra Industries, 712-277-5438/
 (TRA) CO: Terra Industries Inc. ST: Iowa IN: SU: ERN


GK -- NY006 -- 1156 07/21/92 09:31 EDT
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Date:Jul 21, 1992
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