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Mar 31, 2024
LSB Industries Q1 2024 Earnings Report
LSB Industries' financial performance decreased due to lower pricing, partially offset by increased sales volumes and strategic commercial efforts.
Key Takeaways
LSB Industries reported a decrease in net sales and net income for Q1 2024 compared to Q1 2023, with net sales at $138 million and net income at $6 million. This decline was primarily due to lower pricing for all products, although higher sales volumes partially offset the impact. The company focused on returning value to shareholders through stock repurchases and debt reduction.
Net sales decreased to $138 million from $181 million year-over-year.
Net income declined to $6 million from $16 million year-over-year.
Diluted EPS was $0.08, down from $0.21 in the prior year quarter.
Adjusted EBITDA was $33 million compared to $51 million in the first quarter of 2023.
LSB Industries
LSB Industries
LSB Industries Revenue by Segment
Revenue by Segment
AN & Nitric Acid Revenue
CapyFin.comUrea Ammonium Nitrate (UAN) Revenue
CapyFin.comAmmonia Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
The outlook for nitrogen fertilizers is favorable, with attractive U.S. corn futures prices supporting fertilizer demand. Ammonia demand has been strong, with stable pricing due to robust agricultural demand and constrained imports into Europe. UAN demand and pricing are expected to remain strong through much of Q2 2024, driven by tight inventories and lower import levels. The industrial and mining business is robust, supported by steady demand for industrial products and AN for mining applications.
Positive Outlook
- Current prices for ammonia and other nitrogen products should prove attractive to retailers and farmers
- Attractive U.S. corn futures prices are providing support for fertilizer demand for the 2024 application season
- Robust agricultural demand in the fourth quarter of 2023 and first quarter of 2024
- Constrained ammonia imports into Europe from the Middle East due to the disruption of shipping through the Suez Canal
- Steady demand for industrial products supported by resilient U.S. economy
Challenges Ahead
- Lower import levels due to unplanned production issues
- Pricing for all of our products declined during the quarter
- Net sales declined during the quarter
- Operating income declined during the quarter
- Turnarounds at Pryor and Cherokee facilities during the second half of the year
Revenue & Expenses
Visualization of income flow from segment revenue to net income