SIOUX CITY, Iowa, July 26 /PRNewswire/ --
Terra Nitrogen Company, L.P. (NYSE: TNH) (TNCLP) today reported a net loss
of $0.9 million, or $.05 per limited partnership unit, on revenues of
$94.0 million for the second quarter ended June 30, 2001. This compares with
net income of $11.9 million, or $.63 per unit, on revenues of $85.5 million
for the 2000 second quarter. Net income for the 2001 first half was
$0.7 million, or $.04 per unit, on revenues of $154.0 million. Net income for
the 2000 first half was $16.2 million, or $.86 per unit, on revenues of
$155.4 million.
The profit deterioration was due primarily to high natural gas costs and
low sales volumes partially offset by higher selling prices. Natural gas unit
costs for the 2001 second quarter and first half were 93 and 123 percent
higher, respectively, than unit costs incurred in the comparable 2000 periods.
Forward pricing contracts increased TNCLP's 2001 second quarter natural gas
costs by approximately $2.2 million and had no effect on first half costs. As
of June 30, 2001, 14 percent of TNCLP's expected natural gas requirements for
the next 12 months had been priced at about $4.1 million above the published
market prices at that date.
Sales volumes during 2001 were substantially lower than 2000 primarily
because less corn and wheat acres were planted, some growers reduced nitrogen
fertilizer application rates because of high fertilizer prices and low grain
prices and imported nitrogen fertilizers increased market share when TNCLP and
other U.S. nitrogen producers reduced production because of high natural gas
costs. TNCLP suspended all production at its Blytheville facility in early
June because of negative cash flow. TNCLP has not yet scheduled the restart
of Blytheville's production.
TNCLP announced that there would be no cash distribution for the quarter
ended June 30, 2001. Cash distributions are dependent on TNCLP's earnings,
working capital requirements and capital expenditures. TNCLP's quarterly
earnings are usually highest in the quarter ending June 30 due to the seasonal
demand for fertilizer. TNCLP's product selling prices, natural gas costs,
production levels and weather also affect quarterly earnings.
Terra Nitrogen Company, L.P. is a leading manufacturer of nitrogen
fertilizer products.
Information contained in this release, other than historical information,
may be considered forward-looking. Forward-looking information reflects
management's current views of future events and financial performance that
involve a number of risks and uncertainties. The factors that could cause
actual results to differ materially include, but are not limited to, the
following: changes in financial markets, general economic conditions within
the agricultural industry, competitive factors and price changes (principally
nitrogen fertilizer selling prices and natural gas costs), changes in product
mix, changes in the seasonality of demand patterns, changes in weather
conditions, changes in governmental regulations and other risks described in
the "Factors That Affect Operating Performance" section of TNCLP's current
annual report.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com , and by fax at no charge by calling
800-758-5804, code 437906.
TERRA NITROGEN COMPANY, L.P.
Consolidated Statements of Income
(unaudited)
Three Months Ended Six Months Ended
June 30 June 30
(in thousands, except per
unit amounts) 2001 2000 2001 2000
Product revenues $93,852 $85,379 $153,751 $155,095
Other income 193 131 283 300
Total revenues 94,045 85,510 154,034 155,395
Cost of goods sold 88,982 66,693 142,035 126,072
Depreciation and amortization 3,192 3,181 6,372 6,382
Total cost of sales 92,174 69,874 148,407 132,454
Total gross profit 1,871 15,636 5,627 22,941
Operating expenses 2,643 3,492 4,741 5,870
Interest expense - net 149 277 209 915
Net income (loss) $(921) $11,867 $677 $16,156
Earnings (loss) per limited
partnership unit $(0.05) $0.63 $0.04 $0.86
Sales Volumes and Prices 2001 2000
Sales Average Sales Average
Quarter Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 91 276 133 152
UAN 458 117 741 77
Urea 107 144 57 140
2001 2000
Sales Average Sales Average
Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
First Half
Ammonia 109 282 261 142
UAN 812 123 1,343 70
Urea 143 160 185 127
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
(in thousands unaudited)
June 30,
2001 2000
ASSETS
Cash and short-term investments $10 $10,501
Accounts receivable 26,166 29,955
Inventories 48,688 21,338
Other current assets 2,364 2,055
Total current assets 77,228 63,849
Property, plant and equipment, net 142,202 151,308
Other assets 7,857 11,560
Total assets $227,287 $226,717
LIABILITIES
Short-term note and current portion of
long-term debt $20,800 $1,460
Accounts payable and accrued liabilities 18,968 24,380
Total current liabilities 39,768 25,840
Long-term debt 7,231 8,750
Other liabilities 5,316 5,316
Total liabilities 52,315 39,906
PARTNERS' EQUITY 174,972 186,811
Total liabilities and partners' equity $227,287 $226,717
SOURCE Terra Nitrogen Company, L.P.
 back to top
Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/106067.html
CONTACT:
Mark Rosenbury for Terra Nitrogen Company,
L.P., +1-712-279-8756
|
