OKLAHOMA CITY--(BUSINESS WIRE)--Nov. 22, 2016--
LSB Industries, Inc. (NYSE:LXU) (“LSB” or the “Company”) today announced
that it resumed production of nitric acid at its El Dorado, Arkansas
chemical facility (“El Dorado facility” or “El Dorado”) on November 16,
2016 following the completion of a temporary nitrous oxide bypass
system, and the receipt of required permitting from state regulators.
The work was completed to remedy a previously disclosed leak in the
nitrous oxide abatement vessel of El Dorado’s new nitric acid plant. As
previously disclosed, the Company plans to install a new permanent
nitrous oxide abatement vessel that management anticipates will be
completed in late 2017. In the meantime, the temporary solution is
expected to enable El Dorado’s nitric acid plant to operate at targeted
capacity on an ongoing basis.
During the nitric acid plant’s recent downtime, customer orders were
satisfied utilizing product shipped from LSB’s other facilities with
minimal financial impact. Expenses related to the construction of the
temporary bypass system were recognized in the third and fourth quarters
of 2016, which the Company expects to recoup, along with costs related
to the installation of the new nitrous oxide abatement vessel, under the
warranty provisions of the original nitrous acid plant construction
About LSB Industries, Inc.
LSB Industries, Inc., headquartered in Oklahoma City, Oklahoma,
manufactures and sells chemical products for the agricultural, mining,
and industrial markets. The Company owns and operates facilities in
Cherokee, Alabama, El Dorado, Arkansas and Pryor, Oklahoma, and operates
a facility for a global chemical company in Baytown, Texas. LSB’s
products are sold through distributors and directly to end customers
throughout the United States. Additional information about the Company
can be found on its website at www.lsbindustries.com.
Forward Looking Statement
This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally are identified by use of the
words “will”, “believes”, “expects”, “estimates”, “intends”,
“anticipates”, “plans to”, “should”, “estimates”, “projects”, or similar
expressions, including, without limitation, impact of reduced
production, lost fixed cost absorption and repair expenses to third and
fourth quarters 2016 EBITDA; impact of lower sales from lower beginning
inventory, reduced production, identification and completion of repairs
and upgrades to deliver improved financial performance; and improvement
of on-stream rates, translating into greater revenue and profit in the
Investors are cautioned that such forward-looking statements are not
guarantees of future performance and involve risk and uncertainties.
Though we believe that expectations reflected in such forward-looking
statements are reasonable, we can give no assurance that such
expectation will prove to be correct. Actual results may differ
materially from the forward-looking statements as a result of various
factors. These and other risk factors are discussed in the
Company’s filings with the Securities and Exchange Commission (SEC),
including those set forth under “Risk Factors” and “Special Note
Regarding Forward-Looking Statements” in our Form 10-K for the year
ended December 31, 2015 and, if applicable, our Quarterly Reports on
Form 10-Q and our Current Reports on Form 8-K. All forward-looking
statements included in this press release are expressly qualified in
their entirety by such cautionary statements. We expressly
disclaim any obligation to update, amend or clarify and forward-looking
statement to reflect events, new information or circumstances occurring
after the date of this press release except as required by applicable
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Source: LSB Industries, Inc.
LSB Industries, Inc.
Mark Behrman, 405-235-4546
Equity Group Inc.
Fred Buonocore, 212-836-9607