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LSB Industries, Inc. Provides Update on Its Cherokee, AL Facility
Rhea-AI Impact
(Moderate)
Rhea-AI Sentiment
(Neutral)
Tags
Rhea-AI Summary
LSB Industries, Inc. (NYSE: LXU) announced the phased restart of its Cherokee facility in Alabama on January 14, 2023, after a shutdown caused by extreme cold in December 2022. The company projects its fourth quarter 2022 Adjusted EBITDA to be approximately $100 million to $105 million, accounting for $5 million to $7 million in operating profit loss due to the facility outage and declining ammonia prices. LSB operates multiple chemical manufacturing facilities across the U.S. and is focused on reducing environmental impact through carbon capture strategies.
Positive
Phased restart of Cherokee facility indicates operational recovery.
Projected Adjusted EBITDA for Q4 2022 is strong at $100M to $105M.
Negative
Facility shutdown in December 2022 resulted in $5M to $7M loss in operating profit.
Declining selling prices of ammonia and nitrogen products negatively affected revenue.
OKLAHOMA CITY--(BUSINESS WIRE)--
LSB Industries, Inc. (“LSB” or “the Company”), (NYSE: LXU), today announced that on Saturday, January 14, 2023 it began the phased restart of its Cherokee, AL (“Cherokee”) facility after being shut down in late December 2022 as a result of the extremely cold temperatures that impacted much of the United States.
LSB management now expects fourth quarter 2022 Adjusted EBITDA to be in the range of approximately $100 million to $105 million, which includes the previously announced $5 million to $7 million impact to operating profit of the Cherokee outage coupled with the effects of declines in selling prices of ammonia and other nitrogen products that occurred during December.
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 primarily throughout the United States. Committed to improving the world by setting goals that will reduce our environmental impact on the planet and improve the quality of life for all of its people, the Company is well positioned to play a key role in the reduction of global carbon emissions through its planned carbon capture and sequestration, and zero carbon ammonia strategies. Additional information about LSB can be found on its website at www.lsbindustries.com.
Forward-Looking Statements
Statements in this release that are not historical are forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements, which are subject to known and unknown risks, uncertainties and assumptions about us, may include projections of our future financial performance including the effects of the COVID-19 pandemic and anticipated performance based on our growth and other strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events. There are important factors that could cause our actual results, level of activity, performance or actual achievements to differ materially from the results, level of activity, performance or anticipated achievements expressed or implied by the forward-looking statements. Significant risks and uncertainties may relate to, but are not limited to, business and market disruptions related to the COVID-19 pandemic, market conditions and price volatility for our products and feedstocks, as well as global and regional economic downturns, including as a result of the COVID-19 pandemic, that adversely affect the demand for our end-use products; disruptions in production at our manufacturing facilities; our ability to complete the preferred stock exchange transaction on the terms disclosed or at all and other financial, economic, competitive, environmental, political, legal and regulatory factors. These and other risk factors are discussed in the Company’s filings with the Securities and Exchange Commission (SEC).
Moreover, we operate in a very competitive and rapidly changing environment. New risks and uncertainties emerge from time to time, and it is not possible for our management to predict all risks and uncertainties, nor can management assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Neither we nor any other person assumes responsibility for the accuracy or completeness of any of these forward-looking statements. You should not rely upon forward-looking statements as predictions of future events. Unless otherwise required by applicable laws, we undertake no obligation to update or revise any forward-looking statements, whether because of new information or future developments.
