SIOUX CITY, Iowa, Dec. 20 /PRNewswire-FirstCall/ -- Terra Industries Inc.
(NYSE: TRA) announced today that it has reached a settlement on an outstanding
valuation issue with Revenue Canada. Under terms of the settlement, Terra will
realize a refund of $10 million which, together with a reduction in reserves,
will increase Terra's 2004 fourth quarter income by approximately
$25 million.(1)
In 1996, after receiving a favorable ruling from Revenue Canada, Terra
refreshed its tax basis in plant and equipment at its Canadian subsidiary by
entering into a transaction with a Canadian subsidiary of Anglo American plc,
resulting in a deferred tax asset for Terra. In 2000, Revenue Canada
challenged the refreshed amount of this tax basis, and Terra established a
reserve against the previously recorded tax asset. Terra contested Revenue
Canada's 2000 decision and reached this final settlement.
Terra Industries Inc., with 2003 revenues of $1.4 billion, is a leading
international producer of nitrogen products and methanol.
(1) All amounts in $US.
This news release may contain forward-looking statements, which involve
inherent risks and uncertainties. Statements that are not historical facts,
including statements about Terra Industries Inc.'s beliefs, plans or
expectations, are forward-looking statements. These statements are based on
current plans, estimates and expectations. Actual results may differ
materially from those projected in such forward-looking statements and
therefore you should not place undue reliance on them. A non-exclusive list of
the important factors that could cause actual results to differ materially
from those in such forward-looking statements is set forth in Terra Industries
Inc.'s most recent report on Form 10-K and Terra Industries Inc.'s other
documents on file with the Securities and Exchange Commission. Terra
Industries Inc. undertakes no obligation to publicly update or revise any
forward-looking statement, whether as a result of new information, future
developments or otherwise.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com.
SOURCE Terra Industries Inc.
 back to top
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
|
