All Posts from October 30, 2017

LSB Cuts Losses; Pryor to Remain Down Into November

LSB Industries Inc. reported a third-quarter loss from continuing operations of $17.1 million on net sales of $92.4 million, an improvement over the year-ago loss of $39.5 million and $80.3 million, respectively.

The company announced that repairs were completed at its El Dorado, Ark., ammonia plant, and it returned to production Oct. 22. However, the company said that while fire-related repairs at its Pryor, Okla., plant are expected to be concluded this week, the company has opted to replace the process gas pre-heat system that was originally planned for the 2018 turnaround. As a result, this work will be completed by the third week of November.

Compass Points to Higher 3Q Income, Revenue

Compass Minerals reported third-quarter net earnings of $32.0 million ($0.94 per diluted share) on sales of $290.7 million compared to the year-ago $9.1 million ($0.27 per share) and $179.6 million, respectively. Special items impacting results in the 2017 third quarter include a tax benefit of $13.0 million, or $0.38 per diluted share, as well as a restructuring charge of $4.3 million ($3.0 million net of taxes), which reduced net earnings by $0.09 per diluted share. Excluding these items, net earnings were $22.0 million, or $0.65 per diluted share.

“We posted solid earnings this quarter, including the positive impact from the addition of our Plant Nutrition South America (Produquímica Indústria e Comércio SA) segment and margin improvement in our Plant Nutrition North America segment, and our North American highway deicing bid season results were in line with our expectations following the mild winter,” said Fran Malecha, Compass Minerals’ president and CEO.

North American fertilizer sales volumes were off during the quarter, though pricing was up. Volumes were 65,000 st with an average price of $626/st versus the year-ago 70,000 st and $591/st, respectively.

Company third-quarter revenues increased 62 percent as a result of the Produquímica acquisition. Salt and Plant Nutrition North America segment revenue declined 8 percent and 3 percent, respectively, from the prior year.

Huntsman, Clariant Call Off Merger

Huntsman Corp. and Clariant on Oct. 27 jointly announced that they have terminated their proposed merger of equals by mutual agreement. The decision was unanimously approved by the boards of directors of Huntsman and Clariant. Activist investors had opposed the deal.

Intrepid 3Q Losses Shrink

Intrepid Potash Inc. reported a third-quarter loss of $1.9 million on sales of $32.1 million, an improvement over the year-ago loss of $18.2 million and $43.6 million, respectively.

“We continue to successfully execute on our strategy to diversify our income streams, improve our potash margins, and grow our Trio^® sales volumes.” said Bob Jornayvaz, Intrepid’s executive chairman, president and CEO. “By focusing on what we can control through a challenging part of the cycle, we have made improvements in potash profitability and increased Trio^® sales both domestically and abroad. We also doubled our water sales for the second consecutive quarter. As a result of our disciplined approach, we have greatly reduced our outstanding debt levels and improved our performance such that going forward we will pay the lowest interest rates provided under our senior notes.”