(c)     Exhibits

        Exhibit Number             Description
        99.1                       Press release dated May 13, 2003

Item 9.     Regulation FD Disclosure.

The following information is being furnished under Item 12 of Form 8-K "Results of Operations and Financial Condition" and is included under this Item 9 in accordance with SEC Release No. 33-8216 (March 27, 2003).

On May 13, 2003, LSB Industries, Inc. (the "Company") issued a press release to report its financial results for the quarter ended March 31, 2003. The press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

The information in this Form 8-K and the Exhibit attached hereto is being furnished under Item 9 and Item 12 and shall not be deemed "filed" for purposes of Section 18 of the Securities Act of 1934 (as amended), or otherwise subject to the liabilities of such section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 (as amended), except as shall be expressly set forth by specific reference in such filing.

 

COMPANY CONTACT:     Tony M. Shelby
                     Chief Financial Officer
                     (405) 235-4546


KCSA CONTACT:        Leslie A. Schupak/Joe Mansi
                     (212) 682-6300, ext. 205/207


May 13, 2003

                                                                                                                        OTC: LSBD

LSB INDUSTRIES, INC. REPORTS
RESULTS FOR THE QUARTER ENDED MARCH 31, 2003

Oklahoma City, Oklahoma . . . May 13, 2003 . . . LSB Industries, Inc. (OTC Bulletin Board: LSBD), reported a net loss of $1.8 million for the three months ended March 31, 2003.

Results for three months ended March 31, 2003

Net sales from continuing operations for the three months ended March 31, 2003 and 2002 were $71.5 million and $67.9 million, respectively, an increase of $3.6 million.

For the three months ended March 31, 2003, the Company reported a loss of $1.8 million. After deducting $.6 million for preferred stock dividend requirements, which were not paid, the net loss applicable to common stock was $2.4 million or $.20 per share fully diluted.

For the three months ended March 31, 2002, the net loss was $.2 million. After deducting preferred stock dividend requirements, which were not paid, net loss applicable to common stock was $.8 million, or $.07 per share fully diluted.

Commenting on the first quarter 2003 results, Board Chairman, Jack E. Golsen stated that "the Chemical Business' first quarter results were affected by the high cost of its raw material feed stocks, natural gas and anhydrous ammonia. The general economic slowdown resulted in lower shipments and lower operating profit in our Climate Control Business. Although the numbers are disappointing, there is encouragement in the fact that we have not lost market share in either of our core businesses."

The Company is a manufacturing, marketing, and engineering company with activities on a world wide basis. The Company's principal business activities consist of the manufacture and sale of commercial and residential climate control products, the manufacture and sale of chemical products for the mining, agricultural and industrial markets, the provision of specialized engineering services, and other activities. The Company's common stock and Series 2 preferred stock are listed for trading on the Over-the-Counter Bulletin Board.

 

(see accompanying notes)






LSB Industries, Inc.
Notes to Unaudited Financial Highlights
Three Months Ended March 31, 2003 and 2002
(unaudited)

Note 1: Basis of Presentation Certain reclassifications have been made to the Financial Highlights for 2002 to conform to the Financial Highlights presentation for 2003.

Note 2: In December 2002, the Company completed the sale of all of the operating assets of two of the Company's wholly-owned subsidiaries formerly included in the Chemical Business, principally in the packaged explosive business, which business was not considered by the Company to be part of its core Chemical Business. The operations of the sold subsidiaries are reflected as discontinued operations in the accompanying Financial Highlights for 2002.

Note 3: Net loss applicable to common stock is computed by adjusting net loss by the amount of preferred stock dividends. Basic income (loss) per common share is based upon net income (loss) applicable to common stock and the weighted average number of common shares outstanding during each period. Diluted income (loss) per share is based on the weighted average number of common shares and dilutive common equivalent shares outstanding and the assumed conversion of dilutive convertible securities outstanding, if any, after appropriate adjustment for interest, net of related income tax effects on convertible notes payable, as applicable.

Note 4: Information about the Company's operations in different industry segments for the three months ended March 31, 2003 and 2002, is detailed on the following page.