LSB Industries, Inc. (NYSE: LXU) announced today results for the second quarter ended June 30, 2013.
Second Quarter 2013 Financial Highlights Compared to Second Quarter 2012:
Discussion of Second Quarter of 2013:
- Sales were $202.2 million compared to $209.3 million;
- Operating income was $12.2 million compared to $42.3 million;
- Net income and net income applicable to common shareholders were $7.4 million compared to $26.0 million; and
- Diluted earnings per common share were $0.31 compared to $1.11.
The $7.1 million decrease in consolidated sales was primarily the result of a $16.8 million decline in our Chemical Business’ sales partially offset by a $9.8 million increase in our Climate Control Business’ sales.
Our consolidated operating income was $12.2 million for the second quarter of 2013 compared to $42.3 million for the same period in 2012. The $30.1 million decrease in consolidated operating income primarily relates to downtime of ammonia plants and related downstream production units at our Chemical Business’ Pryor and Cherokee Facilities, which also adversely affected sales.
First Six Months 2013 Financial Highlights Compared to First Six Months 2012:
- The Chemical Business operating income decreased $32.8 million primarily due to the decline in gross profit resulting from lower sales volume, unabsorbed fixed overhead costs and costs associated with purchased ammonia and other products to meet some of our customers’ needs, all of which were caused by the downtime at our facilities. Partially offsetting the negative impacts of the downtime was a business interruption insurance recovery of approximately $3 million recognized in the second quarter of 2013. During the second quarter of 2012, downtime at our Pryor and El Dorado Facilities resulted in an approximately $8 million cumulative impact to our Chemical Business’ operating income.
- The Climate Control Business operating income increased $2.1 million primarily due to increased sales volume and the associated absorption of fixed costs.
- Sales were $352.9 million compared to $399.5 million;
- Operating income was $12.0 million compared to $65.4 million;
- Net income was $7.4 million compared to $40.3 million;
- Net income applicable to common shareholders was $7.1 million compared to $40.0 million; and
- Diluted earnings per common share were $0.31 compared to $1.72.
The $46.6 million decrease in consolidated sales was the net result of a $63.5 million decline in the Chemical Business’ sales and a $17.3 million increase in the Climate Control Business’ sales.