SIOUX CITY, Iowa, Oct. 24 /PRNewswire/ --
Terra Nitrogen Company, L.P. (NYSE: TNH) (TNCLP) today reported a net loss
of $11.4 million, or $.60 per limited partnership unit, on revenues of
$47.5 million for the third quarter ended September 30, 2001. This compares
with net income of $3.6 million, or $.19 per unit, on revenues of
$59.0 million for the 2000 third quarter. The net loss for the nine months
ended September 30, 2001 was $10.7 million, or $.57 per unit, on revenues of
$201.3 million compared to net income of $19.8 million, or $1.05 per unit, on
revenues of $214.1 million during the comparable 2000 period.
The third quarter profit deterioration was due largely to lower selling
prices and higher unit manufacturing costs. The lower selling prices reflect
excess industry-wide inventories caused by high imports and low nitrogen
fertilizer consumption. The higher unit manufacturing costs were caused by
TNCLP's suspending production at its Blytheville, Ark., facility during the
entire 2001 third quarter and curtailing production at its Verdigris, Okla.,
facility; lower natural gas costs and stable selling prices near the end of
the quarter permitted the Blytheville facility to resume production on
October 1.
Forward pricing contracts increased TNCLP's 2001 third quarter natural gas
costs by approximately $5.0 million. As of September 30, 2001, 12 percent of
TNCLP's expected natural gas requirements for the next 12 months had been
priced at about $2.5 million above the published market prices at that date.
The profit deterioration for the nine months ended September 30, 2001, was
due to high natural gas costs and low production and sales volumes, though
these were partially offset by higher selling prices. Natural gas costs for
the first nine months of 2001 were 82 percent higher than unit costs incurred
in the comparable 2000 period. Forward pricing contracts increased TNCLP's
natural gas cost costs for the first nine months of 2001 by approximately
$5.1 million. Sales volumes declined as compared to 2000 because of lower
fertilizer consumption and market share lost to imported nitrogen fertilizers.
Selling prices in the 2001 first half were much higher than those in the 2000
first half primarily because of industry-wide production curtailments caused
by unprecedented natural gas cost increases.
TNCLP announced that there would be no cash distribution for the quarter
ended September 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 Nine Months Ended
September 30 September 30
(in thousands, except
per unit amounts) 2001 2000 2001 2000
Product revenues $47,543 $58,997 $201,294 $214,092
Other income 264 248 547 548
Total revenues 47,807 59,245 201,841 214,640
Cost of goods sold 53,428 50,340 195,463 177,196
Depreciation and
amortization 3,237 3,157 9,609 9,539
Total cost of sales 56,665 53,497 205,072 186,735
Total gross profit
(loss) (8,858) 5,748 (3,231) 27,905
Operating expenses 2,135 1,837 6,876 6,923
Interest expense - net 405 274 614 1,189
Net income (loss) $(11,398) $3,637 $(10,721) $19,793
Earnings (loss)
per limited
partnership unit $(0.60) $0.19 $(0.57) $1.05
Sales Volumes and Prices 2001 2000
Sales Average Sales Average
Quarter Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 36 175 56 181
UAN 510 75 520 86
Urea 28 110 30 145
2001 2000
Sales Average Sales Average
Nine Months Volumes Unit Price Volumes Unit Price
(000 tons) ($/ton) (000 tons) ($/ton)
Ammonia 145 256 317 149
UAN 1,323 104 1,863 75
Urea 171 152 215 130
TERRA NITROGEN COMPANY, L.P.
Consolidated Balance Sheets
(in thousands unaudited)
September 30
2001 2000
ASSETS
Cash and short-term investments $10 $19,627
Accounts receivable 25,170 33,963
Inventories 37,268 23,617
Other current assets 7,902 1,483
Total current assets 70,350 78,690
Property, plant and equipment, net 139,336 148,701
Other assets 6,847 13,979
Total assets $216,533 $241,370
LIABILITIES
Short-term note and current portion
of long-term debt $21,709 $1,423
Accounts payable and accrued liabilities 17,906 35,684
Total current liabilities 39,615 37,107
Long-term debt 6,986 8,500
Other liabilities 5,316 5,316
Total liabilities 51,917 50,923
PARTNERS' EQUITY 164,616 190,447
Total liabilities and partners' equity $216,533 $241,370
SOURCE Terra Nitrogen Company, L.P.
 back to top
Related links:
http://www.terranitrogen.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/106067.html
CONTACT:
Mark Rosenbury for Terra Nitrogen Company,
L.P., +1-712-279-8756
|
