Terra, along with its subsidiaries, is a leading North American producer and marketer of nitrogen products, serving agricultural and industrial (including environmental) markets. In addition to manufacturing facilities at Port Neal, Iowa; Courtright, Ontario, Canada; Yazoo City, Mississippi; Donaldsonville, Louisiana and Woodward, Oklahoma, we own a 75.3 percent interest in Terra Nitrogen Company, L.P. (TNCLP), which, through its subsidiary, Terra Nitrogen, Limited Partnership, operates our manufacturing facility at Verdigris, Oklahoma. We are the sole general partner and the majority limited partner of TNCLP. In addition, we own a 50 percent interest in Point Lisas, an ammonia production joint venture in the Republic of Trinidad and Tobago. We also own a 50 percent interest in GrowHow, a nitrogen products manufacturing joint venture with facilities in the U.K.
Terra is one of the largest North American producers of anhydrous ammonia (or ammonia), the basic building block of nitrogen fertilizers. We convert a significant portion of the ammonia we produce into UAN, AN and urea. Each of these products is easier for distributors and farmers to transport, store and apply to crops than ammonia. We also convert ammonia to nitric acid and dinitrogen tetroxide for use in industrial applications, and capture and sell carbon dioxide to industrial users.
The principal customers for our North American nitrogen products are national agricultural retail chains, farm cooperatives, independent dealers and industrial customers. Agricultural customers generally use nitrogen products as fertilizer for crops. Industrial customers use nitrogen products to manufacture chemicals, plastics and other products such as acrylonitrile, polyurethanes, fibers, explosives and adhesives; to reduce NOx and other emissions from power plants; and in water treatment processes. Our facility in Yazoo City, Mississippi produces industrial grade ammonium nitrate (IGAN) prills (a form of dry pellet) and ammonium nitrate solution that are utilized as explosives in the mining industry as well as a raw material in the production of catalyst materials. We have a long term supply contract with one of our customers to provide IGAN products for a majority of the Yazoo City capacity.
Agricultural and industrial customers accounted for approximately 70 and 30 percent of our 2009 North American nitrogen product revenues respectively.
Our income attributable to common stockholders was $152.6 million ($1.53 per diluted share), compared to $631.9 million ($6.20 per diluted share) for 2008, an exceptional year, and Terra’s most profitable. Results for 2009 were reduced by special charges totaling $86.4 million, net of tax ($0.86 per diluted share), related to tax expenses for repatriation of funds to the U.S., fees on early debt retirement and operating expenses related to CF Industries Holdings, Inc.’s (CF) unsolicited proposals to acquire Terra. Excluding these special charges, Terra’s full-year 2009 adjusted results represent the third-best annual financial performance in the company’s history.
Terra delivered this strong performance against a backdrop of lackluster nitrogen demand resulting from the global economic crisis and the psychological effect on buyers of having managed through high-priced inventory from the previous year. The sluggish nitrogen demand resulted in depressed selling prices and weaker sales volumes, which were partially offset by natural gas price reductions. Our ability to generate significant cash in this difficult environment is testament to the effectiveness of our strategic positioning over the past several years.