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Terra Industries, Inc., Company Information

Investor Information
Terra Industries
Inc. is a leading marketer and producer of nitrogen
fertilizers, crop protection products, seed and services for farmers, dealers
and professional growers. Terra also produces nitrogen products and methanol
for industrial customers. Our mission
is to be the supplier of choice.
Third Quarter Performance Highlights
- Earnings included a gain of $0.71 per share as a result of partial
settlement of insurance claims pursuant to the rebuild of the Port Neal
plant.
- In the Nitrogen Products business, lower nitrogen fertilizer prices
and higher natural gas costs than a year ago reduced operating income.
- The Distribution business reported an operating loss, reflecting the
seasonal nature of sales from the company's farm service center network.
- Methanol prices remained strong, averaging $0.58 per gallon in the
quarter, compared with $0.45 last year.
Market Position
- Largest company-owned farm
service center network with more than 425locations, and an affiliated
dealer network of about 840 sites.
- Second largest supplier of crop production inputs to growers and dealers
in North America.
- The largest producer of nitrogen
solutions (UAN) in North America.
- Fourth largest producer of anhydrous
ammonia, the basic ingredient for nitrogen-based plant nutrients, in
North America.
- A major methanol
supplier.
- A leader in the development of environmentally friendly dry flowable
technology for crop protection products.
Earnings Per Share
Historical
Financial Data lists more detailed earnings and performance data.
Terra's highest earnings occur in the second quarter, coincident
with the planting season.
Quarter |
1 |
2 |
3 |
4 |
Year |
1995 |
$.41 |
$1.05 |
$.36 |
$.20 |
$2.01 |
1996 |
.23 |
.90 |
.32 |
.27 |
1.72 |
1997 |
.05 |
1.20 |
.91 |
|
|
What Differentiates Terra?
- Terra emphasizes profit per acre rather than price per unit with grower
customers. Our recommendation system builds cost-effective soil fertility,
crop protection and seed programs for the customer. Over time, the grower
will have a valuable history to better manage his business.
- We have an extensively trained sales force, using our own state-of-the-art
Terra University curricula; regional agronomists to back them up; and a
research farm to test products under field conditions. This means customers
can count on Terra for the information they need.
- Terra takes its environmental responsibility seriously with a full-time
staff of safety and environmental specialists who audit every Terra facility
annually. These Terra experts provide community, regulatory and legislative
assistance, and safety training for employees and customers.
- Terra has also made a commitment to Precision
Agriculture: The use of geo-referenced data to maximize the return
from crop inputs.
Revenue Growth Strategies
- Opportunistic acquisition of fertilizer production capacity will increase
Terra's nitrogen products revenue base.
- Terra is using existing assets to serve new markets, such as the turf,
nursery and vegetation management markets.
- Terra plans to acquire additional farm service centers, expanding the
network and revenue base and capitalizing on the consolidation trend in
agricultural distribution.
Margin Growth Strategies
- Expanded nitrogen solution production in our Port
Neal, Iowa plant will enable increased sales of this upgraded product
in place of lower margin anhydrous ammonia.
- Our product mix goals move sales increasingly to higher margin products,
such as our Riverside® chemicals and Terra seed.
- Terra aims to control costs; SG&A as a percent of sales has decreased
steadily over the last few years.
- By making distribution acquisitions in geography we currently serve,
we spread overhead costs while serving an expanded distribution customer
base.
We want this site to be as useful to our customers and visitors as it can
be. Therefore, please tell us what you'd like us to provide you. Please
e-mail us at Webmanager@terraindustries.com.
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