LSB Industries, Inc. (the “Company”) (NYSE: LXU) today updated the status of its Pryor, OK Facility (“Pryor Facility”), which was shut-down on March 15, 2012 for unplanned maintenance. The ammonia plant resumed production on March 22 and is currently producing at the rate of 625 tons per day, for sale directly into the fertilizer market. The maintenance undertaken at the urea plant, which produces urea ammonia nitrate (“UAN”) is not complete. As a result, the Pryor Facility did not produce UAN during the month of March. The Company expects to resume production of UAN later this month, and will announce when UAN production has resumed.
The Company estimates that the maintenance downtime will result in approximately $4 million less operating income than otherwise would have been expected in March and approximately $1.0 million less in April 2012.
LSB is a manufacturing and marketing company. LSB’s principal business activities consist of the manufacture and sale of commercial and residential climate control products, such as geothermal and water source heat pumps, hydronic fan coils and modular geothermal chillers, and large custom air handlers; and the manufacture and sale of chemical products for the agricultural, mining, and industrial markets.
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Act of 1995. These forward-looking statements generally are identifiable by use of the words “expects,” “estimates,” or similar expressions, and such forward-looking statements including, but not limited to, the timing of resumption of UAN production, and that the Company estimates that the effect of the ammonia plant and the urea plant maintenance shutdowns will result in approximately $4 million less operating income in March and $1 million in April. Investors are cautioned that such forward-looking statements are not guarantees of future performance and involve risk and uncertainties, and that actual results may differ materially from the forward-looking statements as a result of various factors, including, but not limited to, equipment failure, weather conditions, ability to repair or install necessary equipment at the Pryor Facility and the demand for the chemical products produced at the Pryor Facility.
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