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UPDATE 1-LSB halts ammonia production at Alabama plant due to pipe rupture
November 14, 2012 / 9:48 PM / 5 years ago

UPDATE 1-LSB halts ammonia production at Alabama plant due to pipe rupture

Nov 14 (Reuters) - LSB Industries said production at an ammonia plant in Cherokee, Alabama will be lower following a pipe rupture and that it expected the outage to last up to five months, sending the company’s shares down 13 percent.

Avondale Partners analyst Daniel Mannes expects the company to take a related hit of 14 cents per share a month, excluding impact from other products sales and major expenses.

Analysts on average were expecting a profit of 78 cents per share for the current quarter, according to Thomson Reuters I/B/E/S.

The company, which makes chemical products for the mining, agricultural and industrial markets, said no serious injuries or environmental impact have been reported so far at the plant of its unit Cherokee Nitrogen Co.

Cherokee is one of the four chemical plants in the United States for the company, others being located in Pyror, Oklahoma; Baytown, Texas and El Dorado, Arkansas.

An explosion at the El Dorado, Arkansas facility in May had affected the company’s third-quarter profit.

Shares of LSB, which also makes heating, ventilation and air conditioning (HVAC) products, closed down 13 percent at $33.04 on the New York Stock Exchange.

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