Tag - Lxu

LSB Industries Inc. (AMEX:LXU) dropped by more than 11% today after the company announced after Tuesday’s closing that it will need to make more extensive repairs on its anhydrous ammonia chemical plant in Cherokee, Ala.
 
The plant experienced repeated plant downtime during the firm’s fiscal third quarter, which, in turn, reduced production and sales of urea ammonium nitrate fertilizer and to a lesser degree, certain industrial products.
 
The downtime was caused by the plant’s unexpected mechanical failure.
 
After the market closed Tuesday, Oklahoma City, Okla.-based LSB Industries said it would make more repairs during a planned maintenance event that is scheduled for approximately 21 days in October.
 
The plant is currently operating at slightly below-normal rates, however, additional downtime could occur until repairs are made during the plant turnaround.

Because of the issues with the plant, Cherokee has lost approximately 20 days of operation so far in the third quarter. The company predicts the unplanned downtime could reduce its chemical business’ operating income by $5 million to $6 million.

By mid-day, LSB is trading at $17.99, down $2.26 from Tuesday’s close. The stock has traded as low as $13.45 and as high as $28.85 during the past 52 weeks.

For detailed price information and news stories on LSB, click LXU.

LSB Industries, Inc. (AMEX: LXU)
Oklahoma City, Okla.
http://www.lsb-okc.com/

52-week low / high: $11.85 / $28.85
Shares Outstanding: 20.83 million
Market Capitalization: $544million

Those looking for investment ideas in a tight economy might be interested in LSB Industries, Inc. (AMEX: LXU). LSB’s geothermal heat pumps can be used by consumers looking to save on their energy bills because the pumps use solar energy stored in the earth to provide climate control and hot water. With an installed base of more than 3 million, LSB’s units are used in locations as diverse as the Statue of Liberty, the Rockefeller Center, luxury Las Vegas hotels and family residences.

Some of LSB’s products use non-ozone depleting refrigerants. The units also provide “free” domestic hot water and noise-free operation, and have a long lifespan of around 50 years.

The Oklahoma City-based firm is involved in two diverse businesses: chemicals and climate control. About 53% of the company’s business comes from chemicals, 45% from climate control and 2% from engineered products. LSB employs about 1,900 people and has six manufacturing and distribution facilities in Texas, Oklahoma, Arkansas and Alabama.

LSB Industries was founded in 1961 and had its initial public offering in 1969. Why should investors take notice of the 47-year-old company? Because LSB’s products are energy efficient, use less fossil fuels and release fewer greenhouse gases, some investment professionals, including CNBC’s Jim Cramer, think any energy-related legislation under a new presidency could offer significant upside to the company.

In other good news for investors, LSB isn’t that well known. The company’s average daily trading volume is only about 300,000 shares. Also, only one investment bank —  Avondale Partners — covers the company. Avondale ranks the company as a “market outperform” and with good reason.

Over the last three years, LSB has posted earnings-per-share growth of 102%. During the last-reported third quarter, the company posted net income of $18.3 million, or $0.77 per share, soaring 423% from $3.5 million, or $0.18 per share, a year earlier. The firm’s quarterly net sale increased 19% to $147.6 million, from $124 million.

In a January interview with The Oklahoman, LSB President Barry Golsen said the company completed a record year “in all resepects.”

"Both of those core businesses are market and technology leaders in their products," Golsen said. "We've had many local plant expansions, we've hired hundreds of new employees and we're now a very major employer in Oklahoma City."

Going forward, he said LSB is well-positioned to maintain its competitive positions.

There are, of course, risks. LSB is exposed to the weak domestic housing market and a further slowdown would reduce demand for its residential products. Also, a recession would negatively impact demand for chemicals. Still, the potential for upside is compelling and smart investors should take a good look at LSB Industries.

Note: LSB Industries, Inc. (AMEX: LXU) is on the “Watch List” of Rising Star Stocks, a subscription investment newsletter from Business Financial Publishing, which also publishes SmallCapInvestor.com. As a Watch List company, LSB displays many characteristics found in successful stock winners, and is being closely monitored for possible inclusion in the Rising Star Stocks portfolio at a later date.

“Don’t use up all the hot water!”

If you’ve ever uttered this, and many of us have while impatiently waiting to shower in the mornings, then your torrid water saviour might well be LSB Industries, Inc. (AMEX: LXU), formed in 1968.

The Oklahoma City-based small cap has two core businesses: chemicals and indoor climate control, but the key to the company’s growth are water source heat pumps (WSHP) and renewable energy geothermal heat pumps (GSP). Sales of these pumps surged 58% to $134 million in 2006 from 2005 and so far in the first nine months of 2007 have grown 30% from 2006 levels.

WSHP's are conventional cooling and heating units connected to a central HVAC system with a cooling tower and small boiler. They help move heat from zone to zone in a building and reduce both energy use and cost. LSB has a 43% U.S. market share for this pump.

Revenues for LSB Industries are split almost equally between the chemicals and indoor climate control segments: For the latter, LSB targets specialized niches of HVAC (Heating, Ventilating and Air Conditioning) building systems. The company enjoys a 41% U.S. market share in hydronic fans coils (air-handling units used in large commercial buildings). Its installed base of three million units includes placements in such New York City landmarks as Rockefeller Center and the Trump Tower.

In May 2007, Business Week named LXU one of its 100 hottest growth companies. The next month, the shares were added to the Russell 2000 and 3000 indices, making LXU a "must-have" stock for funds that track these indices.

With a growing emphasis on green energy, LSB is the nation's leading geothermal heat pump supplier with a 43% market share. Roughly 3/4 of the energy budget for a single-family house is consumed by heating, air conditioning and generating hot water. A geothermal HVAC system replaces a conventional source such as a natural gas furnace and dramatically reduces heating costs since the earth provides "free" energy.