LSB Industries, Inc. Reports Results for the Year Ended December 31, 2000

Apr 17, 2001, 01:00 ET from LSB Industries, Inc.

    OKLAHOMA CITY, April 17 /PRNewswire/ -- LSB Industries, Inc.
 (OTC Bulletin Board:   LSBD) announced today its results for the year ended
 December 31, 2000.
 
     Results for the year and the three months ended December 31, 2000
     Total revenues from businesses continuing for the calendar year ended
 December 31, 2000 and 1999 were $296.3 million and $259.7 million
 respectively.  Total revenues from businesses continuing for the three months
 ended December 31, 2000 and 1999 were $77.9 million and $64.4 million,
 respectively.
     The Company reported net income for the calendar year 2000 of $6.2 million
 including an extraordinary gain, net of taxes, of $20.1 million.  After
 deducting $2.8 million for dividend requirements on the Company's outstanding
 preferred stocks which were not paid, the net income applicable to common
 stock was $3.4 million, or $.29 per share on 11.9 million average common
 shares compared to a net loss applicable to common stock of $53.0 million, or
 $4.48 loss per share for the 1999 calendar year on 11.8 million average common
 shares.
     Included in the 2000 net income of $6.2 million were (i) a provision for
 loss on firm sales and purchase commitments of $3.4 million, (ii) a net loss
 from discontinued operations of $3.1 million and (iii) an extraordinary gain,
 net of income taxes, of $20.1 million.
     For the three months ended December 31, 2000, the net loss applicable to
 common stock after deducting preferred stock dividend requirements of
 $567,000 was $5.6 million, or $.46 per share, compared to a net loss
 applicable to common stock of $26.6 million or $2.25 per share for the
 comparable quarter of 1999.  The net loss for the three months ended
 December 31, 2000, was largely attributable to the dramatically increased raw
 material costs (natural gas and ammonia) on the Company's Chemical Business.
     Included in the 2000 fourth quarter net loss, were losses for (i) a
 provision for loss on firm sales and purchase commitments of $.9 million, (ii)
 a net loss from discontinued operations of $2.5 million and (iii) an
 extraordinary gain, net of income taxes, of $2.9 million.
     The Company is a manufacturing, marketing and engineering company with
 activities on a worldwide basis.  The Company's principal business activities
 consist of the manufacture and sale of chemical products for the mining,
 agricultural and industrial markets, the manufacture and sale of commercial
 and residential climate control products, the provision of specialized
 engineering services and other activities.
 
                              LSB Industries, Inc.
                          Financial Highlights (Notes)
        Twelve Months and Three Months Ended December 31, 2000 and 1999
                                  (Unaudited)
                    (In thousands, except per share amounts)
 
 
                                     Twelve Months           Three Months
                                    2000        1999       2000        1999
 
     Business continuing at December 31:
 
      Net Sales                  $290,620    $254,236     $76,330    $62,658
 
      Other Income                  5,630       5,419       1,603      1,692
                                  296,250     259,655      77,933     64,350
 
      Cost and expenses:
       Cost of sales (Note 1)     238,066     203,480      65,991     51,328
 
       Selling, general
        administrative             47,787      51,672      12,455     14,772
 
       Provision for impairment
        on long-lived
        assets (Note 2)               ---       4,126         ---      4,126
 
       Interest                    15,377      15,115       3,657      4,189
 
       Other expense                2,280       4,383         196      1,936
                                  303,510     278,776      82,299     76,351
 
     Loss from continuing operations
      before provision for loss on
      purchase and sales commitments,
      business disposed of provision
      for income taxes and
      extraordinary gain           (7,260)    (19,121)     (4,366)   (12,001)
 
     Provision for loss on purchase
      and sales
      commitments (Note 1)          3,395       8,439         910        ---
 
     Loss from continuing operations
      before business disposed of
      provision for income taxes
      and extraordinary gain      (10,655)    (27,560)     (5,276)   (12,001)
 
     Business disposed of (Note 3):
      Revenues                        ---       7,461         ---        273
 
      Operating costs,
       expenses and interest          ---      (9,419)        ---       (273)
                                      ---      (1,958)        ---          0
 
      Loss on disposal of businesses  ---      (1,971)        ---        ---
                                      ---      (3,929)        ---          0
 
     Loss from continuing operations
      before provision for income
      taxes and
      extraordinary gain          (10,655)    (31,489)     (5,276)   (12,001)
 
     Provision for income taxes       135         157         135         55
 
     Loss from continuing operations
      before extraordinary gain   (10,790)    (31,646)     (5,411)   (12,056)
 
     Net loss from discontinued
      operations (Note 4)          (3,101)    (18,121)     (2,522)   (13,722)
 
     Extraordinary gain,
      net (Note 5)                 20,086         ---       2,890        ---
 
     Net income (loss)             $6,195    $(49,767)    $(5,043)  $(25,778)
 
     Net income (loss)
      applicable to common stock   $3,424    $(52,995)    $(5,610)  $(26,580)
 
     Income (loss) per common
      share - basic and diluted:
       Loss from continuing
        operations before
        extraordinary gain         $(1.14)     $(2.95)     $(0.47)    $(1.09)
 
       Net loss from
        discontinued operations     (0.26)      (1.53)      (0.21)     (1.16)
 
       Extraordinary gain            1.69         ---        0.22        ---
                                    $0.29      $(4.48)     $(0.46)    $(2.25)
 
     Average common shares outstanding
      used in computing basic and
      diluted income (loss)
      per common share             11,871      11,838      11,878     11,823
 
 
                             see accompanying notes
 
                              LSB Industries, Inc.
                    Notes to Unaudited Financial Highlights
        Twelve Months and Three Months Ended December 31, 2000 and 1999
 
      Note 1: Inventory Write-down and Loss on Firm Sales and Purchase
              Commitments
 
              During 2000 and 1999, the Chemical Business had commitments to
              purchase anhydrous ammonia under take-or-pay contracts and
              commitments to sell ammonium nitrate to certain customers that
              had prepaid for product.  Based on the pricing index contained
              in the purchase contracts, prices paid during 2000 and 1999 were
              higher than the current spot price.  As a result, in 2000 and
              1999 the Company recorded loss provisions for anhydrous ammonia
              required to be purchased during the remainder of the contract
              aggregating approximately $2.5 million ($1.0 and $1.5 million,
              in the first and second quarters of  2000, respectively) and
              $8.4 million ($7.5 million and $.9 million in the second and
              third quarters of 1999, respectively).  Additionally during
              1999, the market for nitrate-based products was saturated with
              an excess supply of products caused, in part, by the import of
              Russian product and significantly depressed selling prices for
              the Company's products.  As a result, a write-down of
              nitrate-based inventory of $1.6 million was recorded in the
              second quarter of 1999.  The Company also recorded a loss on
              firm sales commitments of $.9 million in the fourth quarter of
              2000, based on the increase in the cost of natural gas used in
              the production of anhydrous ammonia for delivery on a fixed
              price sale.
 
      Note 2: Impairment of Long-Lived Assets
 
              Long-lived assets and certain identifiable intangibles are
              reviewed for impairment whenever events or changes in
              circumstances indicate that the carrying amount may not be
              recoverable.  Recoverability of assets to be held and used is
              measured by a comparison of the carrying amount of the asset to
              future net cash flows expected to be generated by the asset.
 
              For the year ended December 31, 1999, the Company recognized
              impairment totaling $4.1 million (none in 2000) associated with
              two chemical plants which are to be sold or dismantled.  The
              1999 provision for impairment represented the difference between
              the net carrying cost and the estimated salvage value for the
              nonoperating plant to be dismantled and the difference between
              the net carrying cost and the estimated selling price less cost
              to dispose for the plant to be sold.  No additional impairments
              were indicated for the year ended December 31, 2000.
 
      Note 3: Business Disposed Of
 
              On August 2, 1999, the Company sold substantially all the assets
              of its wholly-owned Australian subsidiary, Total Energy Systems
              Limited and its subsidiaries ("TES"), of the Chemical Business.
 
      Note 4: Discontinued Operations
 
              On April 5, 2000, the Board of Directors approved a plan of
              disposal of the Company's Automotive Products Business
              ("Automotive").  The sale of Automotive was concluded on
              May 4, 2000, to DriveLine Technologies ("DLT").  The Company
              received notes, for its net investment, of approximately
              $8.7 million, and the buyer assumed substantially all of
              Automotive's liabilities.  Due to the terms of the notes
              received by the Company in connection with the sale of
              Automotive and the possibility of non collectibility of those
              notes, the Company fully reserved the total amount of these
              notes.  The operating loss associated with the discontinuation
              of this business segment are reflected in the net loss from
              discontinued operations for the year ended December 31, 1999.
 
              Following the sale of Automotive, the Company remained a
              guarantor on certain of Automotive's indebtedness.  In the
              fourth quarter of 2000, the Company was required to perform on
              certain of the equipment note guarantees, and in 2001 has been
              required to fund its $1.0 million guaranty on DLT's revolving
              credit agreement.  The Company has acquired certain of this debt
              from the original lender and in other situations, negotiated
              revised terms.  The Company has recognized its obligations under
              the guarantees as of December 31, 2000, in the amount of
              $4.3 million ($3.2 million of which is due within one year, and
              $1.1 million of which is due after one year).  The Company has
              also recognized a loss in 2000 in the amount of $3.1 million,
              which represents the Company's estimate of ultimate loss, net of
              the collateral value and the loss associated with the final
              adjustment for 2000 operations from the amount accrued as of
              December 31, 1999.
 
      Note 5.
 
              During 2000, subsidiaries of the Company repurchased
              $29.7 million of the Company's 10 3/4% Senior Unsecured Notes
              due 2007 and recognized a gain of approximately $20.1 million
              after taxes of $.1 million.
 
      Note 6.
 
              Basic and diluted earnings (loss) per common share is based upon
              the weighted average number of common shares outstanding during
              each period after giving appropriate effect to preferred stock
              dividend requirements.
 
      Note 7.
 
              Information about the Company's operations in different industry
              segments, for the twelve months and three months ended December
              31, 2000 and 1999, is detailed on the following page.  The
              results of operations from TES for the twelve months ended
              December 31, 1000, has been segregated from the Chemical
              segments in the following table.
 
 
                              LSB Industries, Inc.
                    Notes to Unaudited Financial Highlights
        Twelve Months and Three Months Ended December 31, 2000 and 1999
                                 (In thousands)
                                  (Unaudited)
 
 
                                  Twelve Months Ended     Three Months Ended
                                      December 31             December 31
 
      Net Sales                     2000         1999       2000       1999
 
       Business continuing
 
        Chemical                 $149,639     $128,154     $42,483   $29,725
 
        Climate Control           130,574      117,055      31,596    30,496
 
        Industrial Products        10,407        9,027       2,251     2,437
                                  290,620      254,236      76,330    62,658
 
        Subsidiary disposed
         of: Chemical                 ---        7,461         ---       ---
                                 $290,620     $261,697     $76,330   $62,658
 
     Gross profit:
      Business continuing
       Chemical                   $15,240      $13,532      $1,152    $2,226
 
       Climate Control             34,475       35,467       8,635     9,048
 
       Industrial Products          2,839        1,757         552        56
                                  $52,554      $50,756     $10,339   $11,330
 
     Operating profit (loss):
      Business continuing
       Chemical                    $1,877       $1,325     $(5,062)  $(1,999)
 
       Climate Control             10,961        9,751       2,374     1,607
 
       Industrial Products             77       (2,507)       (168)   (1,189)
                                   12,915        8,569      (2,856)   (1,581)
 
      Subsidiary disposed
       of: Chemical                   ---       (1,632)        ---       ---
                                   12,915        6,937      (2,856)   (1,581)
 
     General corporate expenses
      and other, net               (4,798)      (8,449)      2,147    (2,105)
 
     Interest expense:
      Business continuing         (15,377)     (15,115)     (3,657)   (4,189)
 
      Business disposed
       of: Chemical                   ---         (326)        ---       ---
 
     Gain (loss) on business
      disposed of                     ---       (1,971)        ---       ---
 
     Provision for loss on firm
      sales and purchase
      commitments: Chemical        (3,395)      (8,439)       (910)      ---
 
     Provision for impairment
      on long-lived
      assets: Chemical                ---       (4,126)        ---    (4,126)
 
     Loss from continuing
      operations before provision
      for income taxes and
      extraordinary gain          (10,655)     (31,489)     (5,276)  (12,001)
 
     Provision for income taxes       135          157         135        55
 
     Loss from continuing
      operations before
      extraordinary gain          (10,790)     (31,646)     (5,411)  (12,056)
 
     Net loss from
      discontinued operations      (3,101)     (18,121)     (2,522)  (13,722)
 
     Extraordinary gain            20,086          ---       2,890       ---
 
     Net income (loss)             $6,195     $(49,767)    $(5,043) $(25,778)
 
     Gross profit by industry segments represents net sales less cost of sales.
 Operating profit (loss) by industry segments represents gross profit less
 operating expense before deducting general corporate expenses and other,
 interest expense, income taxes, loss on business disposed of, provisions for
 losses on firm sales and purchase commitments, impairment on long-lived
 assets, loss on discontinued operations and before extraordinary gain on
 extinguishment of debt in 2000.
 
 

SOURCE LSB Industries, Inc.
    OKLAHOMA CITY, April 17 /PRNewswire/ -- LSB Industries, Inc.
 (OTC Bulletin Board:   LSBD) announced today its results for the year ended
 December 31, 2000.
 
     Results for the year and the three months ended December 31, 2000
     Total revenues from businesses continuing for the calendar year ended
 December 31, 2000 and 1999 were $296.3 million and $259.7 million
 respectively.  Total revenues from businesses continuing for the three months
 ended December 31, 2000 and 1999 were $77.9 million and $64.4 million,
 respectively.
     The Company reported net income for the calendar year 2000 of $6.2 million
 including an extraordinary gain, net of taxes, of $20.1 million.  After
 deducting $2.8 million for dividend requirements on the Company's outstanding
 preferred stocks which were not paid, the net income applicable to common
 stock was $3.4 million, or $.29 per share on 11.9 million average common
 shares compared to a net loss applicable to common stock of $53.0 million, or
 $4.48 loss per share for the 1999 calendar year on 11.8 million average common
 shares.
     Included in the 2000 net income of $6.2 million were (i) a provision for
 loss on firm sales and purchase commitments of $3.4 million, (ii) a net loss
 from discontinued operations of $3.1 million and (iii) an extraordinary gain,
 net of income taxes, of $20.1 million.
     For the three months ended December 31, 2000, the net loss applicable to
 common stock after deducting preferred stock dividend requirements of
 $567,000 was $5.6 million, or $.46 per share, compared to a net loss
 applicable to common stock of $26.6 million or $2.25 per share for the
 comparable quarter of 1999.  The net loss for the three months ended
 December 31, 2000, was largely attributable to the dramatically increased raw
 material costs (natural gas and ammonia) on the Company's Chemical Business.
     Included in the 2000 fourth quarter net loss, were losses for (i) a
 provision for loss on firm sales and purchase commitments of $.9 million, (ii)
 a net loss from discontinued operations of $2.5 million and (iii) an
 extraordinary gain, net of income taxes, of $2.9 million.
     The Company is a manufacturing, marketing and engineering company with
 activities on a worldwide basis.  The Company's principal business activities
 consist of the manufacture and sale of chemical products for the mining,
 agricultural and industrial markets, the manufacture and sale of commercial
 and residential climate control products, the provision of specialized
 engineering services and other activities.
 
                              LSB Industries, Inc.
                          Financial Highlights (Notes)
        Twelve Months and Three Months Ended December 31, 2000 and 1999
                                  (Unaudited)
                    (In thousands, except per share amounts)
 
 
                                     Twelve Months           Three Months
                                    2000        1999       2000        1999
 
     Business continuing at December 31:
 
      Net Sales                  $290,620    $254,236     $76,330    $62,658
 
      Other Income                  5,630       5,419       1,603      1,692
                                  296,250     259,655      77,933     64,350
 
      Cost and expenses:
       Cost of sales (Note 1)     238,066     203,480      65,991     51,328
 
       Selling, general
        administrative             47,787      51,672      12,455     14,772
 
       Provision for impairment
        on long-lived
        assets (Note 2)               ---       4,126         ---      4,126
 
       Interest                    15,377      15,115       3,657      4,189
 
       Other expense                2,280       4,383         196      1,936
                                  303,510     278,776      82,299     76,351
 
     Loss from continuing operations
      before provision for loss on
      purchase and sales commitments,
      business disposed of provision
      for income taxes and
      extraordinary gain           (7,260)    (19,121)     (4,366)   (12,001)
 
     Provision for loss on purchase
      and sales
      commitments (Note 1)          3,395       8,439         910        ---
 
     Loss from continuing operations
      before business disposed of
      provision for income taxes
      and extraordinary gain      (10,655)    (27,560)     (5,276)   (12,001)
 
     Business disposed of (Note 3):
      Revenues                        ---       7,461         ---        273
 
      Operating costs,
       expenses and interest          ---      (9,419)        ---       (273)
                                      ---      (1,958)        ---          0
 
      Loss on disposal of businesses  ---      (1,971)        ---        ---
                                      ---      (3,929)        ---          0
 
     Loss from continuing operations
      before provision for income
      taxes and
      extraordinary gain          (10,655)    (31,489)     (5,276)   (12,001)
 
     Provision for income taxes       135         157         135         55
 
     Loss from continuing operations
      before extraordinary gain   (10,790)    (31,646)     (5,411)   (12,056)
 
     Net loss from discontinued
      operations (Note 4)          (3,101)    (18,121)     (2,522)   (13,722)
 
     Extraordinary gain,
      net (Note 5)                 20,086         ---       2,890        ---
 
     Net income (loss)             $6,195    $(49,767)    $(5,043)  $(25,778)
 
     Net income (loss)
      applicable to common stock   $3,424    $(52,995)    $(5,610)  $(26,580)
 
     Income (loss) per common
      share - basic and diluted:
       Loss from continuing
        operations before
        extraordinary gain         $(1.14)     $(2.95)     $(0.47)    $(1.09)
 
       Net loss from
        discontinued operations     (0.26)      (1.53)      (0.21)     (1.16)
 
       Extraordinary gain            1.69         ---        0.22        ---
                                    $0.29      $(4.48)     $(0.46)    $(2.25)
 
     Average common shares outstanding
      used in computing basic and
      diluted income (loss)
      per common share             11,871      11,838      11,878     11,823
 
 
                             see accompanying notes
 
                              LSB Industries, Inc.
                    Notes to Unaudited Financial Highlights
        Twelve Months and Three Months Ended December 31, 2000 and 1999
 
      Note 1: Inventory Write-down and Loss on Firm Sales and Purchase
              Commitments
 
              During 2000 and 1999, the Chemical Business had commitments to
              purchase anhydrous ammonia under take-or-pay contracts and
              commitments to sell ammonium nitrate to certain customers that
              had prepaid for product.  Based on the pricing index contained
              in the purchase contracts, prices paid during 2000 and 1999 were
              higher than the current spot price.  As a result, in 2000 and
              1999 the Company recorded loss provisions for anhydrous ammonia
              required to be purchased during the remainder of the contract
              aggregating approximately $2.5 million ($1.0 and $1.5 million,
              in the first and second quarters of  2000, respectively) and
              $8.4 million ($7.5 million and $.9 million in the second and
              third quarters of 1999, respectively).  Additionally during
              1999, the market for nitrate-based products was saturated with
              an excess supply of products caused, in part, by the import of
              Russian product and significantly depressed selling prices for
              the Company's products.  As a result, a write-down of
              nitrate-based inventory of $1.6 million was recorded in the
              second quarter of 1999.  The Company also recorded a loss on
              firm sales commitments of $.9 million in the fourth quarter of
              2000, based on the increase in the cost of natural gas used in
              the production of anhydrous ammonia for delivery on a fixed
              price sale.
 
      Note 2: Impairment of Long-Lived Assets
 
              Long-lived assets and certain identifiable intangibles are
              reviewed for impairment whenever events or changes in
              circumstances indicate that the carrying amount may not be
              recoverable.  Recoverability of assets to be held and used is
              measured by a comparison of the carrying amount of the asset to
              future net cash flows expected to be generated by the asset.
 
              For the year ended December 31, 1999, the Company recognized
              impairment totaling $4.1 million (none in 2000) associated with
              two chemical plants which are to be sold or dismantled.  The
              1999 provision for impairment represented the difference between
              the net carrying cost and the estimated salvage value for the
              nonoperating plant to be dismantled and the difference between
              the net carrying cost and the estimated selling price less cost
              to dispose for the plant to be sold.  No additional impairments
              were indicated for the year ended December 31, 2000.
 
      Note 3: Business Disposed Of
 
              On August 2, 1999, the Company sold substantially all the assets
              of its wholly-owned Australian subsidiary, Total Energy Systems
              Limited and its subsidiaries ("TES"), of the Chemical Business.
 
      Note 4: Discontinued Operations
 
              On April 5, 2000, the Board of Directors approved a plan of
              disposal of the Company's Automotive Products Business
              ("Automotive").  The sale of Automotive was concluded on
              May 4, 2000, to DriveLine Technologies ("DLT").  The Company
              received notes, for its net investment, of approximately
              $8.7 million, and the buyer assumed substantially all of
              Automotive's liabilities.  Due to the terms of the notes
              received by the Company in connection with the sale of
              Automotive and the possibility of non collectibility of those
              notes, the Company fully reserved the total amount of these
              notes.  The operating loss associated with the discontinuation
              of this business segment are reflected in the net loss from
              discontinued operations for the year ended December 31, 1999.
 
              Following the sale of Automotive, the Company remained a
              guarantor on certain of Automotive's indebtedness.  In the
              fourth quarter of 2000, the Company was required to perform on
              certain of the equipment note guarantees, and in 2001 has been
              required to fund its $1.0 million guaranty on DLT's revolving
              credit agreement.  The Company has acquired certain of this debt
              from the original lender and in other situations, negotiated
              revised terms.  The Company has recognized its obligations under
              the guarantees as of December 31, 2000, in the amount of
              $4.3 million ($3.2 million of which is due within one year, and
              $1.1 million of which is due after one year).  The Company has
              also recognized a loss in 2000 in the amount of $3.1 million,
              which represents the Company's estimate of ultimate loss, net of
              the collateral value and the loss associated with the final
              adjustment for 2000 operations from the amount accrued as of
              December 31, 1999.
 
      Note 5.
 
              During 2000, subsidiaries of the Company repurchased
              $29.7 million of the Company's 10 3/4% Senior Unsecured Notes
              due 2007 and recognized a gain of approximately $20.1 million
              after taxes of $.1 million.
 
      Note 6.
 
              Basic and diluted earnings (loss) per common share is based upon
              the weighted average number of common shares outstanding during
              each period after giving appropriate effect to preferred stock
              dividend requirements.
 
      Note 7.
 
              Information about the Company's operations in different industry
              segments, for the twelve months and three months ended December
              31, 2000 and 1999, is detailed on the following page.  The
              results of operations from TES for the twelve months ended
              December 31, 1000, has been segregated from the Chemical
              segments in the following table.
 
 
                              LSB Industries, Inc.
                    Notes to Unaudited Financial Highlights
        Twelve Months and Three Months Ended December 31, 2000 and 1999
                                 (In thousands)
                                  (Unaudited)
 
 
                                  Twelve Months Ended     Three Months Ended
                                      December 31             December 31
 
      Net Sales                     2000         1999       2000       1999
 
       Business continuing
 
        Chemical                 $149,639     $128,154     $42,483   $29,725
 
        Climate Control           130,574      117,055      31,596    30,496
 
        Industrial Products        10,407        9,027       2,251     2,437
                                  290,620      254,236      76,330    62,658
 
        Subsidiary disposed
         of: Chemical                 ---        7,461         ---       ---
                                 $290,620     $261,697     $76,330   $62,658
 
     Gross profit:
      Business continuing
       Chemical                   $15,240      $13,532      $1,152    $2,226
 
       Climate Control             34,475       35,467       8,635     9,048
 
       Industrial Products          2,839        1,757         552        56
                                  $52,554      $50,756     $10,339   $11,330
 
     Operating profit (loss):
      Business continuing
       Chemical                    $1,877       $1,325     $(5,062)  $(1,999)
 
       Climate Control             10,961        9,751       2,374     1,607
 
       Industrial Products             77       (2,507)       (168)   (1,189)
                                   12,915        8,569      (2,856)   (1,581)
 
      Subsidiary disposed
       of: Chemical                   ---       (1,632)        ---       ---
                                   12,915        6,937      (2,856)   (1,581)
 
     General corporate expenses
      and other, net               (4,798)      (8,449)      2,147    (2,105)
 
     Interest expense:
      Business continuing         (15,377)     (15,115)     (3,657)   (4,189)
 
      Business disposed
       of: Chemical                   ---         (326)        ---       ---
 
     Gain (loss) on business
      disposed of                     ---       (1,971)        ---       ---
 
     Provision for loss on firm
      sales and purchase
      commitments: Chemical        (3,395)      (8,439)       (910)      ---
 
     Provision for impairment
      on long-lived
      assets: Chemical                ---       (4,126)        ---    (4,126)
 
     Loss from continuing
      operations before provision
      for income taxes and
      extraordinary gain          (10,655)     (31,489)     (5,276)  (12,001)
 
     Provision for income taxes       135          157         135        55
 
     Loss from continuing
      operations before
      extraordinary gain          (10,790)     (31,646)     (5,411)  (12,056)
 
     Net loss from
      discontinued operations      (3,101)     (18,121)     (2,522)  (13,722)
 
     Extraordinary gain            20,086          ---       2,890       ---
 
     Net income (loss)             $6,195     $(49,767)    $(5,043) $(25,778)
 
     Gross profit by industry segments represents net sales less cost of sales.
 Operating profit (loss) by industry segments represents gross profit less
 operating expense before deducting general corporate expenses and other,
 interest expense, income taxes, loss on business disposed of, provisions for
 losses on firm sales and purchase commitments, impairment on long-lived
 assets, loss on discontinued operations and before extraordinary gain on
 extinguishment of debt in 2000.
 
 SOURCE  LSB Industries, Inc.