New York, NY (1888PressRelease)
July 25, 2008 - Stockhouse reports that Terra Industries Inc. (NYSE: TRA) announced today record net income available to common shareholders for the 2008 second quarter of $202.2 million ($1.94 per diluted share), up from $69.4 million ($.66 per diluted share) for the same period in 2007.
Revenues for the 2008 second quarter totaled $843.1 million compared to $692.5 million for the 2007 second quarter. The 2007 revenues included $121.2 million from Terra's UK operations that were later contributed to a joint venture. Excluding the 2007 UK results, revenues increased $271.8 million from the 2007 to the 2008 second quarter, primarily due to higher nitrogen products selling prices.
Terra CEO Mike Bennett said, "Terra realized record earnings for the second quarter, reflecting not only a very positive nitrogen industry environment, but also excellent performance in all areas of the company, including our joint ventures in Trinidad and the UK. While our costs increased due to higher natural gas prices, continued strong product demand allowed nitrogen selling prices to keep pace.
As a leading supplier of fertilizer to the agricultural industry TRA could be an interesting way to play the agricultural commodity market which is being pushed by both population growth and a diversion of foodstuffs to the growing biofuels industry. The key is if they can pass along their rising cost to purchasers, which has so far been the case. The company is holding a conference call at 3:00 p.m. EDT today.
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