SIOUX CITY, Iowa, Dec. 11 /PRNewswire/ --
Terra Industries Inc. (NYSE symbol: TRA) reported today that it has sold a
portion of its December natural gas purchases. This sale required the
shutdown of one of the two sets of ammonia and upgrading plants at its
Verdigris, Okla. facility.
Michael L. Bennett, Executive Vice President and Chief Operating Officer
of Terra, stated, "The natural gas price increase since our December
requirements were purchased for Verdigris permitted us to sell a portion of
those purchases and generate higher gross profits than could be realized from
selling the products manufactured with the natural gas. We will evaluate the
economics of bringing Verdigris back to full production near the end of
December when January's natural gas purchase commitments must be made."
Terra previously reported on November 30 that it would not operate its
Blytheville, Ark. and Beaumont, Texas facilities during December. These idled
facilities, including last weekend's Verdigris shutdown, represent 40%, 30%,
67% and 88% of Terra's North American ammonia, UAN, urea and methanol
manufacturing capacity, respectively. The facilities will resume production
when natural gas, nitrogen products and/or methanol prices reach levels
allowing positive cash flows.
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.
Terra Industries Inc., with 1999 revenues of $775 million, is a leading
international producer of nitrogen products and methanol.
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.
 back to top
Related links:
http://www.terraindustries.com
Company News On-Call:
http://www.prnewswire.com/comp/437906.html or fax,
800-758-5804, ext. 437906
CONTACT:
Mark Rosenbury of Terra Industries Inc.,
712-279-8756
|
