Oklahoma City-LSB Industries Inc. reported an operating loss in its chemical business of $3.3 million on sales of $59.7 million for the third quarter ending Sept. 30, 2009, compared to the year-ago $1.86 million and $124.5 million, respectively. LSB cited steep declines in commodity prices, including the selling prices for its products, accompanied by steep declines in raw material feedstock costs and lower tons sold in mining markets. Start-up costs of the Pryor nitrogen plant grew to $7.1 million during the quarter from the expected $4 million. Barring further delays, the expected September start-up has now stretched into December. LSB also said there was a $1 million embedded loss on firm sales commitments as of Sept. 30, 2009. This includes the effect of higher natural gas costs and the cost in excess of committed selling prices for those tons that were expected to be acquired on the open market to make up for the Pryor shortfall. LSB said the long-term outlook for grain and crop production is good, and that UAN pricing is now firming. It said signs point to improved sales and margins in all three of its primary chemical markets in 2010. Nine-month chemical income was $15.5 million on sales of $204.1 million, versus the year-ago $34.5 million and $329.3 million. Company-wide, LSB reported net income of $1.1 million ($.05 diluted share) on sales of $127.8 million, versus the year-ago $4.2 million ($.18 per share) and $210.9 million. Nine-month net income was $21.5 million ($.95 per share) on sales of $416.5 million, versus the year-ago $33 million ($1.40 per share) and $569.4 million.
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