Oklahoma City, Okla. — LSB Industries Inc. reported a drop in second-quarter net income to $417,000 ($0.02 per share) on sales of $182.6 million, compared to the year-ago $11.1 million ($0.47 per share) and $201.7 million, citing the performance of its Chemical segment. “Our second-quarter results were impacted by both internal and external factors,” said Barry Golsen, LSB president and CEO. “Chemical Business sales declined primarily as a result of a 17-day unplanned outage at our Pryor facility ammonia plant during May, which was caused by the need to replace a failed heat exchanger and, to a lesser extent, a water main break in the industrial park where the facility is located. Additionally, the lower Chemical sales as compared to prior-year second quarter reflects the previously discussed April 2015 expiration of our contract with Orica for low-density ammonium nitrate. A final factor negatively affecting second-quarter Chemical Business results was the impact of unfavorable weather in our agricultural markets, which shortened the spring fertilizer application season, reducing our volumes and depressing prices for ammonia, UAN, and AN in the quarter.” LSB reported solid growth in LSB’s Climate Control business, though operating profits were off due to lower sales for some products and increased personnel costs. Second-quarter Chemical operating income was $6.8 million on sales of $112.8 million, down from the year-ago $23.6 million and $135.7 million, respectively. Six-month LSB income was $7.1 million ($0.29 per share) on sales of $376.5 million, down from $22.7 million ($0.96 per share) and $380.2 million. Six-month Chemical operating income was $23.5 million on sales of $239.6 million, down from $52.4 million and $251 million, respectively.
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