Terra Industries 3Q earnings plummet 72 pct

posted: 34 DAYS 10 HOURS AGO

Text SizeAAA

SIOUX CITY, Iowa -Fertilizer company Terra Industries Inc. on Thursday said its third-quarter earnings plunged 72 percent as the economic downturn continued to push down sales prices and demand.

Results matched Terra's outlook, provided Monday, when the company prepared investors for its dismal results.

Margins were helped somewhat by cheaper natural gas costs, but for the most part, pricing pressure and crippled agricultural and industrial demand overshadowed any gains the company saw in the most recent quarter.

Quarterly earnings fell to $45.9 million, or 46 cents per share, compared with $164.9 million, or $1.64 per share during the same period last year.

Analysts polled by Thomson Reuters estimated a profit of 52 cents per share, on average.

Revenue fell 56 percent to $347.1 million, down from $790.2 million in the prior-year period. Analysts forecast an average revenue of $355.70.

Separately, Terra sent a letter to its shareholders urging them to reject an ongoing takeover bid by CF Industries.

Despite repeated rejections, CF has sought to acquire Terra since January. In September, CF renewed its bid to buy Terra, saying it had acquired 7 percent of Terra's shares and that it offered to buy the rest in a deal worth nearly $4 billion. Terra continued to resist the marriage.

In October, CF urged Terra shareholders to elect three of its own nominees for Terra's board, in an effort to boost chances for its all-stock takeover bid. In Terra's letter Thursday, the company urged shareholders to vote for Terra's directors. Terra's board-member election is scheduled to occur during Terra's annual meeting Nov. 20.

CF is also the target of a takeover bid by Agrium Inc.

Shares of Terra rose 2 cents to $35.53 in morning trading.

2009-10-22 12:00:14