10-K405/A

 
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                      SECURITIES AND EXCHANGE COMMISSION
                            Washington, D.C.  20549

                                  FORM 10-K/A

             ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
                        SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 1997       Commission file number: 1-8520

                             TERRA INDUSTRIES INC.
            (Exact name of registrant as specified in its charter)

                                   Maryland
                        (State or other jurisdiction of
                        incorporation or organization)

                                  52-1145429
                               (I.R.S. Employer
                              Identification No.)

                                 Terra Centre
                               600 Fourth Street
                                P. O. Box 6000
                               Sioux City, Iowa
                   (Address of principal executive offices)

                                  51102-6000
                                  (Zip Code)

      Registrant's telephone number, including area code: (712) 277-1340
                                        
Securities registered pursuant to Section 12(b) of the Act:

                                                    Name of each exchange
          Title of each class                        on which registered
          -------------------                        -------------------

    Common Shares, without par value               New York Stock Exchange
                                                   Toronto Stock Exchange
     10 3/4% Senior Notes Due 2003                           N/A

     10 1/2% Senior Notes Due 2005                           N/A

Securities registered pursuant to Section 12(g) of the Act:    None

                                --------------

     Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [X] No [ ]

     Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained to the
best of Registrant's knowledge in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

     The aggregate market value of the Registrant's voting stock held by non-
affiliates of the Registrant, at January 31, 1998, was approximately $386
million.

     On January 31, 1998, the Registrant's outstanding voting stock consisted of
74,982,411 Common Shares, without par value.
================================================================================


                          Part II. Other Information

Item 6.  Exhibits
         
         (a) Exhibits

             27 - Amended Financial Data Schedule to restate prior period EPS 
due to new accounting rule [Edgar filing only].
 

                                   SIGNATURE

     Pursuant to the requirements of Section 13 or 15(d) 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.

Date: March 31, 1998                   By: /s/ FRANCIS G. MEYER
                                           --------------------
                                           Francis G. Meyer
                                           Senior Vice President and 
                                             Chief Financial Officer


     

EX-27.1

 


 
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from 
the consolidated statement of financial position of Terra Industries Inc. as of 
December 31, 1997 and the related consolidated statement of income for the year 
then ended.


<MULTIPLIER> 1,000
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                         DEC-31-1997
<PERIOD-START>                            JAN-01-1997
<PERIOD-END>                              DEC-31-1997
<CASH>                                        118,869
<SECURITIES>                                   61,193         
<RECEIVABLES>                                 124,844
<ALLOWANCES>                                 (13,154)
<INVENTORY>                                   395,940
<CURRENT-ASSETS>                              738,979 
<PP&E>                                      1,441,858
<DEPRECIATION>                              (260,474)
<TOTAL-ASSETS>                              2,359,954
<CURRENT-LIABILITIES>                         436,255
<BONDS>                                       497,030
<PREFERRED-MANDATORY>                               0
<PREFERRED>                                         0
<COMMON>                                      127,581
<OTHER-SE>                                    662,748
<TOTAL-LIABILITY-AND-EQUITY>                2,359,954
<SALES>                                     2,462,081 
<TOTAL-REVENUES>                            2,542,369
<CGS>                                       1,967,344         
<TOTAL-COSTS>                               1,967,344 
<OTHER-EXPENSES>                                    0
<LOSS-PROVISION>                                7,090
<INTEREST-EXPENSE>                             63,153
<INCOME-PRETAX>                               332,482
<INCOME-TAX>                                  122,600
<INCOME-CONTINUING>                           209,882
<DISCONTINUED>                                      0 
<EXTRAORDINARY>                               (2,995)
<CHANGES>                                           0 
<NET-INCOME>                                  206,887
<EPS-PRIMARY>                                    2.80
<EPS-DILUTED>                                    2.76
        

 

EX-27.2

 


 
<ARTICLE> 5
<LEGEND> This schedule contains summary financial information extracted from 
the consolidated statement of financial position of Terra Industries Inc. as of 
December 31, 1997 the related consolidated statement of income for the year 
then ended.


<MULTIPLIER> 1,000
       
                                                                          
<PERIOD-TYPE>                   9-MOS                    6-MOS                   3-MOS
<FISCAL-YEAR-END>                         DEC-31-1997              DEC-31-1997              DEC-31-1997
<PERIOD-START>                            JAN-01-1997              JAN-01-1997              JAN-01-1997
<PERIOD-END>                              SEP-30-1997              JUN-30-1997              MAR-31-1997
<CASH>                                         35,481                   87,843                   36,863
<SECURITIES>                                   12,142                    7,160                    7,722
<RECEIVABLES>                                 386,408                  568,194                  219,209
<ALLOWANCES>                                 (15,889)                 (15,875)                 (11,845) 
<INVENTORY>                                   344,167                  380,596                  576,779
<CURRENT-ASSETS>                              830,691                1,059,169                  890,380
<PP&E>                                      1,132,220                1,118,973                1,076,559
<DEPRECIATION>                              (252,941)                (244,919)                (228,155)
<TOTAL-ASSETS>                              2,112,644                2,333,903                2,140,452
<CURRENT-LIABILITIES>                         556,420                  817,900                  720,055
<BONDS>                                       410,553                  410,035                  403,501
<PREFERRED-MANDATORY>                               0                        0                        0
<PREFERRED>                                         0                        0                        0
<COMMON>                                      127,559                  127,478                  126,545
<OTHER-SE>                                    626,186                  562,131                  464,206
<TOTAL-LIABILITY-AND-EQUITY>                2,112,644                2,333,903                2,140,452
<SALES>                                     2,092,524                1,611,924                  423,683
<TOTAL-REVENUES>                            2,151,440                1,655,604                  433,710
<CGS>                                       1,670,479                1,289,168                  338,052
<TOTAL-COSTS>                               1,670,479                1,289,168                  338,052
<OTHER-EXPENSES>                                    0                        0                        0
<LOSS-PROVISION>                                6,697                    5,619                      794
<INTEREST-EXPENSE>                             44,447                   28,753                   13,484
<INCOME-PRETAX>                               271,591                  158,823                    6,642
<INCOME-TAX>                                  110,370                   65,117                    2,740
<INCOME-CONTINUING>                           161,221                   93,706                    3,902
<DISCONTINUED>                                      0                        0                        0
<EXTRAORDINARY>                                     0                        0                        0
<CHANGES>                                           0                        0                        0
<NET-INCOME>                                  161,221                   93,706                    3,902
<EPS-PRIMARY>                                    2.18                     1.27                     0.05
<EPS-DILUTED>                                    2.15                     1.25                     0.05
        

 

EX-27.3

 


 
<ARTICLE> 5

<MULTIPLIER> 1,000
       
                                                                                                  
<PERIOD-TYPE>                   YEAR               9-MOS               6-MOS               3-MOS               YEAR
<FISCAL-YEAR-END>                     DEC-31-1996         DEC-31-1996         DEC-31-1996         DEC-31-1996        DEC-31-1995
<PERIOD-START>                        JAN-01-1996         JAN-01-1996         JAN-01-1996         JAN-01-1996        JAN-01-1995
<PERIOD-END>                          DEC-31-1996         SEP-30-1996         JUN-30-1996         MAR-31-1996        DEC-31-1995
<CASH>                                     94,570              25,451              37,678              20,751            126,356
<SECURITIES>                                6,172               9,959              10,219              13,358             12,351
<RECEIVABLES>                              92,997             391,237             584,576             229,612            189,364
<ALLOWANCES>                             (11,391)            (12,130)            (18,464)            (11,795)           (10,626)
<INVENTORY>                               422,938             366,390             364,615             553,434            367,272
<CURRENT-ASSETS>                          712,294             877,560           1,081,071             922,043            763,996
<PP&E>                                  1,048,993             986,316             943,740             910,832            838,604
<DEPRECIATION>                          (202,640)           (193,326)           (177,277)           (163,831)          (144,246)
<TOTAL-ASSETS>                          1,969,365           2,075,917           2,250,896           2,074,921          1,867,858
<CURRENT-LIABILITIES>                     525,137             610,904             812,702             636,524            456,123
<BONDS>                                   404,707             405,338             405,405             405,837            407,162
<PREFERRED-MANDATORY>                           0                   0                   0                   0                  0
<PREFERRED>                                     0                   0                   0                   0                  0
<COMMON>                                  127,614             127,534             128,573             134,219            133,970
<OTHER-SE>                                478,478             461,381             452,771             456,234            437,613
<TOTAL-LIABILITY-AND-EQUITY>            1,969,365           2,075,917           2,250,896           2,074,921          1,867,858
<SALES>                                 2,264,509           1,911,851           1,455,173             388,312          2,215,874
<TOTAL-REVENUES>                        2,316,486           1,951,957           1,480,419             394,741          2,292,173
<CGS>                                   1,722,450           1,470,402           1,127,297             277,517          1,657,070
<TOTAL-COSTS>                           1,946,995           1,653,896           1,255,528             328,795          1,881,524
<OTHER-EXPENSES>                          118,795              70,730              50,588              24,497             80,181
<LOSS-PROVISION>                           15,428               9,943               8,740                 555              7,798
<INTEREST-EXPENSE>                         59,947              42,891              26,768              11,565             64,897
<INCOME-PRETAX>                           197,851             190,221             151,262              31,660            279,382
<INCOME-TAX>                               63,900              76,469              61,412              13,260            115,500
<INCOME-CONTINUING>                       133,951             113,752              89,850              18,400            163,882
<DISCONTINUED>                                  0                   0                   0                   0                  0
<EXTRAORDINARY>                                 0                   0                   0                   0            (4,338)
<CHANGES>                                       0                   0                   0                   0                  0
<NET-INCOME>                              133,951             113,752              89,850              18,400            159,544
<EPS-PRIMARY>                                1.74                1.47                1.15                0.23               1.98
<EPS-DILUTED>                                1.72                1.45                1.13                0.23               1.96