LSB Industries Inc. said it had additional unplanned downtime at one of its chemical plants in May and June that will affect its second-quarter results when they are released in early August.
The Oklahoma City-based company, which also has a climate control manufacturing division, said its quarterly earnings will come in below its original estimates. But better results at its climate control division and expected business interruption insurance payments later in the year will make up for some of the lower revenues.
LSB said it lost ammonia production at its Pryor plant in May and June after shutting down to replace some bearings and couplings. The company said that downtime, along with other maintenance and repair costs, will drop second-quarter operating income to between $9 million to $12 million. LSB had $42.3 million in operating income in the second quarter of 2012.
The company said second-quarter chemical division results also were affected by a later start to the agricultural fertilizer season because of cooler weather and higher costs for natural gas. The Pryor plant has since restarted production.