OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 14, 2012--
LSB Industries, Inc. (the “Company”) (NYSE: LXU) today announced that
the facility of its subsidiary, Cherokee Nitrogen Company (“Cherokee
Nitrogen Facility”), suffered a pipe rupture causing damage to the heat
exchanger portion of its ammonia plant. The Company is determining
whether damages extend beyond the area where the rupture occurred. No
serious injuries, or environmental impact, resulted from the pipe
rupture. Management preliminarily estimates a three to five month outage
at the ammonia plant, depending on lead times for repair parts. Until
the ammonia plant is repaired, we believe that the Cherokee Nitrogen
Facility can produce, on a limited basis, nitric acid and ammonium
nitrate solution to be produced from purchased ammonia. The Company has
notified its insurer of this event. The Company’s insurance policy,
which provides replacement cost coverage, has a $2.5 million deductible
for property damage. The Company’s business interruption insurance
covering certain lost profits and extra expense has a 30 day waiting
period.
LSB is a manufacturing and marketing company. LSB’s principal business
activities consist of the manufacture and sale of commercial and
residential climate control products, such as geothermal and water
source heat pumps, hydronic fan coils and modular geothermal chillers,
and large custom air handlers; and the manufacture and sale of chemical
products for the agricultural, mining, and industrial markets.
This press release contains certain forward-looking statements within
the meaning of the Private Securities Litigation Act of 1995. These
forward-looking statements generally are identifiable by use of the
words “believe,” “expects,” “intends,” “plans to,” “estimates,”
“projects” or similar expressions, and such forward-looking statements
include, but are not limited to, the extent of damage to the Cherokee
Nitrogen Facility, the length of time that the ammonia plant at the
Cherokee Nitrogen Facility will be out of production, and whether the
Cherokee Nitrogen Facility can produce until repairs are completed.
Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties, and
that actual results may differ materially from the forward-looking
statements, and other factors set forth under “A Special Note Regarding
Forward-Looking Statements”, a discussion of a variety of factors which
could cause the future outcome to differ materially from the
forward-looking statements contained in this report and in the Form 10-K
for year ended December 31, 2011, and the Form 10Qs for the quarters
ended March 31, 2012, June 30, 2012 and September 30, 2012.
Source: LSB Industries, Inc.
COMPANY:
Tony M. Shelby, 405-235-4546
Chief Financial
Officer
or
Investor Relations:
The Equity Group
Inc.
Linda Latman, 212-836-9609
Fred Buonocore, 212-836-9607
