Shares of LSB Industries Plunge 25% After Second-Quarter Results and Sale Termination

Shares of LSB Industries (NYSE: LXU), a diversified holding company that sells chemical products for agricultural, mining, and industrial markets, are getting hit with a 24% decline as of 11:00 a.m. EDT after the release of disappointing second-quarter results -- a reversal from the first quarter.

LSB Industries managed to grow its net sales during the second quarter to $122.9 million, up from $110 million during the prior year, but couldn't bring that improvement to the bottom line. The company's net income checked in at a $0.53 loss per share, compared to a profit of $0.20 per share during the prior-year quarter. Part of the financial woes stemmed from weather in its primary markets that caused an inventory buildup of LSB's agricultural ammonia products and resulted in a deterioration in prices. Management anticipates the excess capacity to be absorbed by early 2018, but the near-term pain will remain, which is partly influencing investors in the 25% sell-off today. The other part is that LSB also announced it didn't find a sale transaction that was in the best interests of the company and its shareholders, and has terminated the formal sale process.

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Source: Fool.com