Oklahoma City-Operating profits were up nearly 65 percent for the second quarter ending June 30, 2007, at El Dorado Chemical Co., the chemical/nitrogen segment of LSB Industries Inc. Chemical operating profit was $7.9 million on sales of $79.4 million, up from the year-ago $4.8 million and $78.2 million, respectively. The company said the primary reason for this increase relative to sales was the improved El Dorado, Ark., plant’s agricultural product margins, resulting from greater nitrogen demand, which helped overcome heavy rains in some market areas. Margins were also better due to the timing of a 2007 turnaround versus the one for 2006. The Cherokee, Ala., plant saw higher prices and volumes, but results were off due to higher production costs and lower cost absorption due to unplanned maintenance downtime. Overall, ag product sales were up 15.9 percent during the quarter, to $37.0 million from the year-ago $31.9 million. In the meantime, mining product sales were up 8.2 percent, while industrial acids and other products were off 18.9 percent. Chemical six-month profits more than doubled to $15.6 million on sales of $153.1 million, compared to the year-ago $6.6 million and $140.7 million, respectively. LSB-wide, net income was up 111 percent for the second quarter, to $13.2 million on sales of $156.8 million, versus the year-ago $6.3 million and $132.4 million, respectively. Six-month net income was $24.0 million on sales of $304.1 million, up from the year-ago $9.2 million and $244.2 million.
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