- Current report filing (8-K)
April 12 2010 - 4:13PM
Edgar (US Regulatory)
UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest
event reported):
April 12, 2010
TERRA INDUSTRIES INC.
(Exact name of registrant as
specified in its charter)
Maryland
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1-8520
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52-1145429
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(State or other jurisdiction
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(Commission File Number)
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(IRS Employer
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of incorporation)
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Identification Number)
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Terra Centre
600 Fourth Street, P.O. Box 6000
Sioux City, Iowa
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51102-6000
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(Address of principal executive offices)
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(Zip Code)
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Registrants
telephone number, including area code:
(712)
277-1340
(Former name or former address, if
changed since last report.)
Check the appropriate box
below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions:
o
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17
CFR 240.14d-2(b))
o
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
ITEM 2.02 RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
On April 12, 2010, we made
available certain preliminary financial information and operating data
underlying our results of operations. Information
regarding preliminary financial results for our fiscal quarter ended March 31,
2010 is set forth below:
Recent
Developments
Although our
financial statements for the quarter ended March 31, 2010 are not yet
complete, certain preliminary financial information and operating data underlying
our results of operations are available. The following financial information
and operating data is not a comprehensive statement of the financial results
for Terra Industries Inc. (Terra) for the quarter ended March 31, 2010
and has not been reviewed or audited by Terras independent registered public
accounting firm. The final financial results for the quarter ended
March 31, 2010 may vary from our expectations and may be materially
different from the preliminary financial information and operating data
provided below as the quarterly financial statement close process is not
complete and additional developments and adjustments may arise between now and
the time the financial results for this period are finalized. Accordingly, you
should not place undue reliance on the following financial information and
operating data.
Management currently expects
Terras 2010 first quarter revenues to be approximately $409 million,
approximately 3% lower than Terras 2009 first quarter revenues of $420
million. This decline is primarily due to lower selling prices for ammonia, UAN
and AN. The prior year first quarter selling price benefited from the orders
that were previously committed to under higher prices during 2008. The decline
in selling prices was partially offset by an increase in UAN and AN sales
volume of 34% and 76%, respectively. For the first quarter, natural gas unit
costs, net of forward pricing gains and losses, decreased by approximately 27%
from $7.37 per MMBtu in 2009 to $5.39 per MMBtu in 2010.
Set forth below is summary
operating data for Terra based on managements current expectations for the
quarters ended March 31, 2010 and 2009:
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Three Months Ended
March 31,
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2010
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2009
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2010 v. 2009
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(in millions, except as noted)
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Total revenues
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$
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409
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$
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420
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$
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(11
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)
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Tons of product sold (000s)
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1,589
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1,251
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338
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Sales volume by product (000s)
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Ammonia
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374
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381
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(7
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)
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Urea
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82
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77
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5
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UAN(1)
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837
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625
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212
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Other nitrogen products
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296
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168
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128
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Average selling price per ton by product
(2)
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Ammonia
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$
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314
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$
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336
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$
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(22
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)
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Urea
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325
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322
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3
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UAN(1)
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184
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282
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(98
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)
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Other nitrogen products
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193
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267
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(74
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)
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Cost of natural gas (per MMBtu)(3)
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$
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5.39
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$
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7.37
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$
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(1.98
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)
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(1) Measured in
tons of UAN containing 32% nitrogen by weight.
(2) After
deducting outbound freight costs.
(3) Includes all transportation and other
logistical costs and any gains or losses on financial derivatives related to
North American natural gas purchases.
2
SIGNATURES
Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.
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TERRA
INDUSTRIES INC.
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By:
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/s/ Douglas C. Barnard
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Name: Douglas C. Barnard
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Title: Vice President and Secretary
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Date: April 12, 2010
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3
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