OKLAHOMA CITY (AP) -- LSB Industries Inc. provided a second-quarter earnings forecast below Wall Street's expectations on Wednesday, stating it lost production at some facilities during the period. But the company said that its climate controls business is improving and that it will see "significant" business interruption and property insurance recoveries in the year's second half.
Shares of the company, which makes heating and air conditioning products for homes and commercial buildings, and also has an arm that produces chemicals for agricultural, mining and industry, rose in afternoon trading.
LSB anticipates second-quarter earnings between 20 cents and 30 cents per share, well below the $1.11 it reported in the 2012 second quarter.
Analysts surveyed by FactSet, on average, were expecting earnings of $1.09 per share.
The company plans to report its full financial results for the quarter on Aug. 6.
LSB said that its Pryor, Okla., ammonia plant, which had some planned downtime, resumed production in late April. But in May and June, the facility was taken out of production to replace a bearing and later to replace a failed coupling. The company also performed routine maintenance at that time that was initially slated to occur later in the year. The plant had 30 days of unplanned downtime over the two-month period and is now in production.
Its Cherokee, Al., plant, which also had some downtime, restarted production in early May.
LSB said its climate controls business had a strong second quarter, with higher sales and operating income. The segment also did well in the first quarter, which the company said signals strengthening of the non-residential construction market.
The company said that since it conducted extensive maintenance on some of its chemicals plants over the past three quarters, the maintenance procedures usually scheduled during the third quarter won't be as extensive. The company also anticipates the significant business and property insurance recoveries.
Its stock climbed $1, or 3.1 percent, to $33.02 in afternoon trading, after peaking at $33.76 earlier in the session The shares have traded in a 52-week range of $28.15 to $45.
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