By Matt Walker
LSB Industries says its markets remain strong and tariffs have caused uncertainty, but haven't had a significant effect on markets so far. The chemical-industry company said its exposure to tariffs is limited.
On markets and tariffs:
"Our markets remain strong," said Mark Behrman, LSB Industries' chairman and chief executive. "U.S. corn plantings for the current spring season are expected to be at historically high levels and corn prices are supportive of strong demand and pricing for nitrogen fertilizers."
On the effect of tariffs:
"The effect of tariffs is causing uncertainty in our industry and the broader economy," Behrman said. "However, we have not seen a significant impact on our markets so far. Our exposure to direct tariff impacts is limited, as less than 10% of our sales are made to customers outside the U.S.
"We are more likely to see the impact of tariffs on the cost side of our business, as some of the parts, components and equipment we use to maintain our plants come from outside of the U.S., particularly Europe," he said. "We are seeking opportunities to source domestically wherever possible so that we can minimize the potential impacts of tariffs on our costs."
On company investment:
"With our strong balance sheet, we will first continue to invest in our core business in order to achieve our reliability improvement goals," Behrman said. "After that, we will look to balance investments in projects that increase our profits, while managing our leverage at a level appropriate for the evolving economic uncertainty.
"With respect to our low carbon project at our El Dorado facility, we expect production of low carbon ammonium nitrate solution to begin by the end of 2026," he said. "Regarding our Houston Ship Channel project, given the impact of U.S. tariff-related price increases and other global economic uncertainties on costs, coupled with a slower-than-anticipated ramp-up of low carbon ammonia demand, we have decided to put a pause on the project."
Write to Matt Walker at matthew.walker@dowjones.com
(END) Dow Jones Newswires
April 29, 2025 19:07 ET (23:07 GMT)
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