SIOUX CITY, Iowa, Sept. 25 /PRNewswire/ --
Terra Industries Inc. (NYSE: TRA) announced today that it has recalled the
laid-off employees at its Blytheville, Ark., facility and expects to resume
production on or about October 1. Production was suspended on June 10, 2001,
because ammonia and urea selling prices and natural gas costs did not provide
positive cash flow. The Blytheville facility's production capacity represents
14 percent of Terra's total North American nitrogen production capacity.
Michael L. Bennett, Terra's President and CEO, said, "Current nitrogen
prices and natural gas costs enable us to generate incremental cash flows
through the operation of the Blytheville plant. We have entered into
near-term commitments to fix prices for a portion of the plant's production
capacity and natural gas needs to help ensure expected cash flows. We are
extremely pleased to call our Blytheville employees back to work and enable
this facility to meet our customers' peak 2002 seasonal requirements.
"We have also been encouraged by nitrogen demand during the third quarter.
Our sales volumes have approximated last year's strong third quarter levels.
Excess industry-wide inventories at June 30, 2001, created by record high
imports and other conditions, have started to decline. Those higher inventory
levels caused nitrogen prices to soften from the second quarter, but prices
appear to have stabilized at current levels. Third quarter operating results
will be negatively affected by high second quarter natural gas costs in
inventory and forward positions and lower product selling prices. We are,
however, optimistic about Terra's earnings prospects as we anticipate a more
moderate natural gas environment and improved product demand for our North
American nitrogen business."
Terra Industries Inc., with 2000 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
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,
selling prices of nitrogen and methanol products and natural gas costs),
changes in product mix, changes in the seasonality of demand patterns, changes
in weather conditions, changes in agricultural regulations, and other risks
detailed in the "Factors That Affect Operating Results" section of Terra's
current annual report.
SOURCE Terra Industries Inc.
 back to top
Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/437906.html
CONTACT:
Mark Rosenbury, +1-712-279-8756, for Terra
Industries Inc.
|
