Oklahoma City-based LSB Industries, Inc. announced an adjusted net loss of $57.3 million, or $2.12 cents per diluted share for the third quarter of 2016, according to the company’s earnings statements issued Thursday. In a separate announcement, LSB indicated that it is evaluating the possibility of a sale or merger as it expects only modest financial changes for the next several quarters due to the soft selling price environment for its products.
The company reported sales of $80.3 million and total assets of $282.8 million in the third quarter.
LSB announced the completion of plant turnarounds at Cherokee and Pryor during the third quarter.
“Our El Dorado Facility’s new ammonia plant was down for the second half of July due to a lightning strike, and then after returning to service, we took it down at other points during the quarter for repairs and upgrades aimed at improving safety and reliability,” said Daniel Greenwell, LSB’s President and CEO. “Our Cherokee and Pryor facilities both underwent scheduled turnarounds in the quarter during which we also identified opportunities to improve our existing preventative maintenance programs, which we expect to enhance future performance of these operations. In short, while our third quarter results were below our forecast headed into the period, we believe that we have made investments that will deliver favorable returns in 2017.”
The manufacturer also announced that its Board of Directors has initiated a process to explore and evaluate potential alternatives which may include a sale of the Company, a merger or another strategic transaction involving some or all of its assets.
LSB has retained Morgan Stanley & Co. LLC as its financial advisor to assist with the strategic review process.
The company has not set a timetable for completion of the review process.