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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): December 13, 1994
TERRA INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
MARYLAND 1-8520 52-1145429
(State or other jurisdiction of (Commission File (I.R.S. Employer
incorporation or organization) Number) Identification No.)
TERRA CENTRE
600 FOURTH STREET
P.O. BOX 6000
SIOUX CITY, IOWA 51102-6000
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (712) 277-1340
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ITEM 2. Disposition of Assets.
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On December 13 and 14, 1994, Terra Industries Inc. issued press releases
contained in Exhibits 1-3 hereto, which are incorporated by reference herein.
ITEM 5. Other Events.
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On December 13 and 14, 1994, Terra Industries Inc. issued press releases
contained in Exhibits 1-3 hereto, which are incorporated by reference herein.
SIGNATURE
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 thereunto duly authorized.
TERRA INDUSTRIES INC.
By: /S/ GEORGE H. VALENTINE
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George H. Valentine
Vice President, General Counsel
and Corporate Secretary
Date: December 19, 1994
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[TERRA LETTERHEAD]
EXHIBIT 1
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News Release
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For Immediate Release Contact: Paula C. Norton
(712) 277-5438
EXPLOSION OCCURS AT TERRA INDUSTRIES' PORT NEAL AMMONIA PLANT
Sioux City, Iowa (December 13, 1994)--Terra Industries Inc. (NYSE symbol: TRA)
announced that at approximately 6:00 A.M. today a major explosion occurred at
one of its five nitrogen fertilizer production plants. The affected facility is
located in Port Neal, Iowa, about 16 miles south of Sioux City. Five fatalities
and a dozen injuries have been confirmed.
Terra's President and CEO, Burton Joyce, said, "We are most concerned about our
employees and their families; our initial efforts are directed to helping them.
Secondly, we are cooperating with local emergency teams to contain the situation
so that we can begin a thorough investigation concerning the cause and extent of
damages which are not known at this time."
Additional details will be released as they become available.
This explosion has no effect on the business operations of Terra Nitrogen
Company, L.P.
Terra Industries is a leading marketer and producer of nitrogen-based plant
nutrients, crop protection products, seed and services for agricultural, turf,
ornamental and other growers. Terra also produces nitrogen products and methanol
for industrial customers.
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[TERRA LETTERHEAD]
EXHIBIT 2
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News Release
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For Immediate Release Contact: Paula C. Norton
(712) 277-5438
TERRA INDUSTRIES--UPDATE ON PLANT EXPLOSION
Sioux City, Iowa (December 13, 1994, 2:00 p.m. CST)--Terra Industries (NYSE
symbol: TRA) currently believes that this morning's explosion occurred in the
ammonium nitrate area of its Port Neal, Iowa plant. The cause has not been
determined. However, the explosion resulted in metal fragments puncturing one of
two 15,000-ton refrigerated ammonia storage tanks. The spilled ammonia liquid
was contained within the facility's storage tank dike and evaporating ammonia
vapors are being released to the atmosphere.
It is estimated that 5,700 tons of ammonia were in the punctured tank. No
estimate of release volume is possible at this time. Terra employees and local
emergency response personnel are evaluating options to stop the on-going vapor
release.
In addition, metal fragments punctured a near-by nitric acid tank, causing a
spill of up to 100 tons of 56% nitric acid. The facility's wastewater discharge
system was blocked in to ensure there were no releases to groundwater.
Local emergency response agencies are monitoring ammonia concentrations away
from the plant. At this time, as a safety precaution they are evacuating people
within a three-to-four mile radius of the plant. The local agencies state there
is no health hazard posed to anyone beyond this limit, although ammonia odors
may be detected farther away.
Additional details will be released as they become available.
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[TERRA LETTERHEAD]
EXHIBIT 3
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News Release
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For Immediate Release Contact: Paula C. Norton
(712) 277-5438
TERRA INDUSTRIES' INITIAL ASSESSMENT OF IMPACT
OF PORT NEAL EXPLOSION
Sioux City, Iowa (December 14, 1994)--Terra Industries Inc. (NYSE symbol: TRA)
announced today that it believes insurance coverages are adequate to protect the
company from adverse material consequences of yesterday's explosion at its Port
Neal, Iowa nitrogen fertilizer production plant. Terra anticipates recovering
most of lost profits through its business interruption insurance coverage.
Additionally, its property damage policy will enable the company to rebuild the
plant. Terra expects to provide reserves during the fourth quarter of
approximately $5 million to cover insurance deductibles and other uninsured
costs related to the explosion.
The Port Neal facility contributed an estimated $12 million ($.17 per share)
to 1993 net income and $11 million ($.15 per share) for the first nine months of
1994. On a pro forma basis, Terra's total earnings (including those derived from
Agricultural Minerals and Chemicals which was acquired on October 20, 1994)
would have been $.97 per share. Port Neal accounts for 15% of Terra's total
nitrogen fertilizer production, pro forma the acquisition.
Burton M. Joyce, Terra's President and CEO, commented, "It will be a few weeks
before the company will know the length of time during which the plant will be
out of service. However, we do not expect it to be operating prior to the 1995
planting season."
Joyce commented that Terra does not believe the plant outage will affect the
supply of fertilizer to its grower customers, who receive their fertilizer from
Terra through its purchases from other fertilizer manufacturers. The company is
currently exploring options for obtaining supplies for dealer customers
normally serviced from the Port Neal plant. This may entail shipment from other
Terra plants or purchases on the open market.
The company anticipates it will be some time before it will have any indication
concerning the cause of the explosion or accurate assessments of rebuilding
costs.
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