OKLAHOMA CITY--(BUSINESS WIRE)--Sep. 28, 2017--
LSB Industries, Inc. (NYSE:LXU) (“LSB” or “the Company”) today announced
that the ammonia plant at its Pryor, Oklahoma chemical facility (“Pryor
Facility” or “Pryor”) experienced a minor fire and was taken out of
service on September 23, 2017 to repair damage to some of the plant’s
electrical controls, wiring and piping. None of the Company’s employees
were injured, there was no damage to the reformer or to other major
pieces of equipment, and there was no release of ammonia.
LSB management expects the repairs to be completed and ammonia
production to resume by the end of October 2017. The Company plans to
meet customer commitments for pre-sales of products by either shipping
from other facilities or by purchasing them from third parties and thus,
the ammonia plant downtime will not result in reductions of UAN or
ammonia sales volumes.
Management expects that the EBITDA impact resulting from the repair
expenses, the excess cost of purchasing UAN versus producing it, and the
reduced absorption of fixed costs will be approximately $1.5 million to
$2.0 million for the third quarter of 2017 and $2.5 million to $2.75
million for the fourth quarter of 2017.
LSB will provide an update on the progress of the repairs and the
impacts of the downtime on financial results when the Company reports
third quarter 2017 results in late October.
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 contains certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These forward-looking statements generally are identifiable by use of
the words “may,” “believe,” “expect,” “intend,” “plan to,” “estimate,”
“project” or similar expressions, and include but are not limited to:
enhanced reliability at our Facilities; reducing costs; expanding into
new markets; reducing leverage and completing repairs on time and as
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
expectations 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, 2016 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 law.
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Source: LSB Industries, Inc.
LSB Industries, Inc.:
Mark Behrman, 405-235-4546
Equity Group Inc.
Fred Buonocore, 212-836-9607