SIOUX CITY, Iowa, Oct. 10 /PRNewswire-FirstCall/ --
Terra Industries Inc. (NYSE: TRA) announced today that its third quarter
results that will be released on October 24, 2002, include an $11 million
charge to increase reserves for expected future cash payments related to
retained liabilities of discontinued operations. The charge consists of a
$17 million increase to reserve balances less income tax benefits totaling
$6 million.
Approximately $13 million of the increase to reserve balances is related
primarily to higher-than-expected future retiree health care costs of the coal
operations that Terra sold in 1992. The remaining $4 million represents the
estimated costs to settle remaining obligations of the distribution operations
that Terra sold in 1999.
Including the $17 million third quarter charge, Terra's discontinued
operations reserves at September 30, 2002, totaled approximately $30 million,
of which $26 million is attributable to expected future payments for the coal
operation's retirees and other former employees. Payments for retiree health
care and other benefits for former coal employees were $2.3 million in 2001
and are expected to total $2.5 million in 2002 and less than $3 million in
2003.
Terra Industries Inc., with 2001 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.
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.
SOURCE Terra Industries Inc.
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Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html
CONTACT:
Mark Rosenbury for Terra Industries Inc.,
+1-712-279-8756, or mrosenbury@terraindustries.com
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