LSB Industries, Inc. Reports That Its Chemical Business’ Pryor, Oklahoma Facility Stops Ammonia Production To Perform Unplanned Maintenance And To Install Replacement Ammonia Converter
LSB Industries, Inc. (the “Company”) (NYSE: LXU) today announced that its Pryor, Oklahoma chemical facility (“Pryor Facility”) has stopped production at its principal ammonia plant to perform unplanned maintenance on a compressor. During this downtime, the Pryor Facility will also install a replacement ammonia converter, which is expected to improve the production capacity of this ammonia plant. The Company estimates an outage of approximately 6 to 8 weeks. Downtime at the Pryor Facility had been planned for January 2013 to perform the ammonia converter replacement and planned maintenance activities, but this outage began earlier and is likely to be longer than the Company previously anticipated due to the need for unplanned maintenance on the compressor. The Company estimates that the adverse effect of this downtime on operating income is approximately $2 million per week until production resumes.
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 “believe,” “expects,” “intends,” “plans to,” “estimates,” “projects” or similar expressions, and such forward-looking statements include, but are not limited to, the extent of work to be performed, length of time that the Pryor Facility will be out of production, the effect on production once the replacement and maintenance is completed, and the effect on sales on our Chemical Business as a result of the Pryor Facility being out of production for a period of time. 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, without limitation, general economic conditions, ability to obtain replacement and repair equipment and parts in a timely manner, weather conditions, labor conditions, and other factors set forth under “A Special Note Regarding Forward-Looking Statements” in our Form 10-K for year ended December 31, 2011, and the Form 10-Qs for the quarters ended March 31, 2012, June 30, 2012 and September 30, 2012.
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