LSB Industries, Inc. Reports Downtime at Cherokee Plant
The Company anticipates that the plant will be out of production for approximately 30 days as a result of necessary repairs, returning to service by the end of the year. This downtime has and will continue to result in lost fixed cost absorption while the plant is not operating, as well as lost production, which is expected to total approximately 16,000 tons of ammonia, representing saleable product of approximately 20,000 tons of UAN, 9,000 tons of AN Solution and 1,700 tons of ammonia. During the downtime, the Cherokee Facility has been supplying, and anticipates it will be able to supply, most of its customers’ demands for UAN, AN Solution and ammonia from its inventory and, as a result, expects it will end 2014 with lower than previously anticipated inventory levels. The Company plans to notify the market when the Cherokee Facility is returned to service.
LSB has revised its outlook for fourth quarter 2014 Chemical Business sales volume as follows:
|Products||Revised Outlook - Sales (tons)||Previous Outlook - Sales (tons)|
|UAN||80,000 – 85,000||95,000 – 115,000|
|AN||25,000 – 30,000||25,000 – 30,000|
|Anhydrous ammonia||25,000 – 30,000||25,000 – 30,000|
|Industrial, Mining and Other:|
|Nitric acid||145,000 – 150,000||145,000 – 150,000|
|AN and AN solution||30,000 – 35,000||30,000 – 35,000|
|Anhydrous ammonia||6,000 – 8,000||6,000 – 8,000|
LSB is a manufacturing and marketing company. LSB’s principal business activities consist of the manufacture and sale of chemical products for the agricultural, mining, and industrial markets, and the manufacture and sale of commercial and residential climate control products, such as water source and geothermal heat pumps, hydronic fan coils, modular chillers, large custom air handlers and make-up air units.
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 “believes”, “expects”, “intends”, “anticipates”, “plans to”,
“estimates”, “projects”, or similar expressions, including, without
limitation, the return to service of the Cherokee Facility, lost
production and absorption, supplying customer demands, inventory levels,
and outlook for fourth quarter 2014 Chemical Business sales volume.
Actual results may differ materially from the forward-looking statements
as a result of various future events, including without limitation,
general economic conditions, weather conditions, customer demands and
the “Risk Factors” in our most recent 10-K and Form 10-Qs for quarters
LSB Industries, Inc.
Tony M. Shelby
Chief Financial Officer
Senior Vice President, Corporate Development
The Equity Group Inc.
Fred Buonocore, 212-836-9607
Linda Latman, 212-836-9609