(c)     Exhibits

        Exhibit Number             Description
        99.1                       Press release dated April 1, 2004

Item 12.     Results of Operations and Financial Condition.

On April 1, 2004, LSB Industries, Inc. (the "Company") issued a press release to report its financial results for the year ended December 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 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

March 31, 2004

LSB INDUSTRIES, INC. REPORTS
RESULTS FOR THE QUARTER AND
THE YEAR ENDED DECEMBER 31, 2003

Oklahoma City, Oklahoma . . . April 1, 2004. . . LSB Industries, Inc. (AMEX: LXU), reported net income of $3.1 million for the year ended December 31, 2003.

Results for the year and three months ended December 31, 2003

Net sales from continuing operations for the years ended December 31, 2003 and 2002 were $317.3 million and $283.8 million, respectively, an increase of $33.5 million. Net sales for the three months ended December 31, 2003 and 2002 were $76.8 million and $65.6 million, respectively.

For the year ended December 31, 2003, the Company reported net income of $3.1 million. After deducting $2.3 million for preferred stock dividend requirements, which were not paid, the net income applicable to common stock was $.8 million or $.05 per share fully diluted.

For the three months ended December 31, 2003, net income was $18,000. After deducting $.6 million for preferred stock dividend requirements, which were not paid, net loss applicable to common stock was $.6 million or $.05 per share fully diluted.

For the year ended December 31, 2002, income from continuing operations was $2.7 million. Including loss from discontinued operations, net income was $99,000. Net income for the year ended December 31, 2002, included a gain on extinguishment of debt of $1.5 million and a loss from discontinued operations of $3.5 million. After deducting preferred stock dividend requirements, which were not paid, net loss applicable to common stock was $2.2 million, or $.19 per share fully diluted.

For the three months ended December, 31, 2002, net income was $3.7 million which included a gain on extinguishment of debt of $1.5 million and a net gain from discontinued operations of $1.0 million. After deducting preferred dividend requirements, which were not paid, net income applicable to common stock was $3.1 million, or $.22 per share fully diluted.

Barry Golsen, President of LSB, commented that this was the fourth straight year that the Company reported profits. "In 2002 and 2003, our Climate Control Business experienced the effects of the aftermath of 9/11 which impacted the economy in general and specifically the commercial construction sector. During this period, our Chemical Business was impacted by the high price of natural gas.

Despite these difficult conditions, we have been profitable and have continued to work to improve the results."

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 stock is traded on the AMEX under the symbol LXU.

 

(See accompanying notes)

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 income (loss) applicable to common stock is computed by adjusting net income (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 year and three months ended December 31, 2003 and 2002, is detailed on the following page.