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| [X]                                                                                                                                                                                                                                                                                                                                      | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                     | For the quarterly period ended             March 31, 2011                |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                     | OR                                                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                         |
| [  ]                                                                                                                                                                                                                                                                                                                                | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934                                                                                     |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                     | For the transition period from   _____________to______________                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                     | Commission file number                  1-7677       |
|                                                                                                                                                                                                                                                                                                                                     |                                                                                                                                                                         |
|              LSB Industries, Inc.                                                                                                                                                                                |
| Exact name of Registrant as specified in its charter                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                     |
|           Delaware                                                                                                                                                                                                         |     73-1015226                                                                                                                  |
| State or other jurisdiction of incorporation or organization                                                                                                                                                                                                                                                                             | I.R.S. Employer Identification No.                                                                                                                                           |
|                                                                                                                                                                                                                                                                                                                                     |
|        16 South Pennsylvania Avenue, Oklahoma City, Oklahoma                     73107                                                                         |
|                  Address of principal executive offices                  (Zip Code)                                                                            |
|                                                                                                                                                                                                                                                                                                                                     |
|                (405) 235-4546                                                                                                                                            |
|   Registrant's telephone number, including area code                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                     |
|           __             None            _        ___           |
| Former name, former address and former fiscal year, if  changed since last report.                                                                                                                                                                                                                                                  |

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Table of Contents

TABLE OF CONTENTS

|         |                                                                                       |   |
|--------------|--------------------------------------------------------------------------------------------|--------|
|         |                                                                                       |   |
|         | PART I – Financial Information                                                       | Page   |
|         |                                                                                       |   |
| Item 1.      | Financial Statements                                                                       | 4      |
|         |                                                                                       |   |
| Item 2.      | Management's Discussion and Analysis of Financial Condition and Results of Operations | 31     |
|         |                                                                                       |   |
| Item 3.      | Quantitative and Qualitative Disclosures About Market Risk                                 | 46     |
|         |                                                                                       |   |
| Item 4.      | Controls and Procedures                                                                    | 47     |
|         |                                                                                       |   |
|    | Special Note Regarding Forward-Looking Statements                                          | 48     |
|         |                                                                                       |   |
|         | PART II – Other Information                                                          |   |
|         |                                                                                       |   |
| Item 1.      | Legal Proceedings                                                                          | 49     |
|         |                                                                                       |   |
| Item 1A.     | Risk Factors                                                                               | 49     |
|         |                                                                                       |   |
| Item 2.      | Unregistered Sales of Equity Securities and Use of Proceeds                                | 50     |
|         |                                                                                       |   |
| Item 3.      | Defaults Upon Senior Securities                                                            | 50     |
|         |                                                                                       |   |
| Item 4.      | (Reserved)                                                                                 | 50     |
|         |                                                                                       |   |
| Item 5.      | Other Information                                                                          | 50     |
|         |                                                                                       |   |
| Item 6.      | Exhibits                                                                                   | 51     |

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Table of Contents

|   | March 31,2011 |   | December 31,2010 |
|--------|---------------|--------|------------------|

|   | (In Thousands) |
|--------|----------------|

| Assets                                  |   |   |    |   |   |   |
|-----------------------------------------|--------|--------|---------|--------|--------|--------|
| Current assets:                         |   |   |    |   |   |   |
| Cash and cash equivalents               |   | $      | 98,045  |   |   | $      | 66,946 |   |
| Restricted cash                         |   |   | 31      |   |   |   | 31 |   |
| Short-term investments                  |   |   | -       |   |   |   | 10,003 |   |
| Accounts receivable, net                |   |   | 76,077  |   |   |   | 74,259 |   |
| Inventories:                            |   |   |    |   |   |   |   |   |
| Finished goods                          |   |   | 40,911  |   |   |   | 32,072 |   |
| Work in process                         |   |   | 3,138   |   |   |   | 2,981 |   |
| Raw materials                           |   |   | 26,771  |   |   |   | 25,053 |   |
| Total inventories                       |   |   | 70,820  |   |   |   | 60,106 |   |
| Supplies, prepaid items and other:      |   |   |    |   |   |   |   |   |
| Prepaid insurance                       |   |   | 3,219   |   |   |   | 4,449 |   |
| Precious metals                         |   |   | 13,051  |   |   |   | 12,048 |   |
| Supplies                                |   |   | 7,253   |   |   |   | 6,802 |   |
| Fair value of derivatives and other     |   |   | 218     |   |   |   | 1,454 |   |
| Other                                   |   |   | 3,677   |   |   |   | 1,174 |   |
| Total supplies, prepaid items and other |   |   | 27,418  |   |   |   | 25,927 |   |
| Deferred income taxes                   |   |   | 5,490   |   |   |   | 5,396 |   |
| Total current assets                    |   |   | 277,881 |   |   |   | 242,668 |   |
|                                    |   |   |    |   |   |   |   |   |
| Property, plant and equipment, net      |   |   | 136,685 |   |   |   | 135,755 |   |
|                                    |   |   |    |   |   |   |   |   |
| Other assets:                           |   |   |    |   |   |   |   |   |
| Debt issuance costs, net                |   |   | 1,153   |   |   |   | 1,023 |   |
| Investment in affiliate                 |   |   | 3,901   |   |   |   | 4,016 |   |
| Goodwill                                |   |   | 1,724   |   |   |   | 1,724 |   |
| Other, net                              |   |   | 2,871   |   |   |   | 2,795 |   |
| Total other assets                      |   |   | 9,649   |   |   |   | 9,558 |   |
|                                    |   | $      | 424,215 |   |   | $      | 387,981 |   |

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Table of Contents

|   | March 31,2011 |   | December 31,2010 |
|--------|---------------|--------|------------------|

|   | (In Thousands) |
|--------|----------------|

| Liabilities and Stockholders’ Equity                                                                             |   |    |   |   |    |   |
|------------------------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|---------|--------|
| Current liabilities:                                                                                                   |   |    |   |   |    |   |
| Accounts payable                                                                                                       | $      | 48,088  |   | $      | 51,025  |   |
| Short-term financing                                                                                                   |   | 2,682   |   |   | 3,821   |   |
| Accrued and other liabilities                                                                                          |   | 38,497  |   |   | 31,507  |   |
| Current portion of long-term debt                                                                                      |   | 5,340   |   |   | 2,328   |   |
| Total current liabilities                                                                                              |   | 94,607  |   |   | 88,681  |   |
|                                                                                                                   |   |    |   |   |    |   |
| Long-term debt                                                                                                         |   | 76,338  |   |   | 93,064  |   |
|                                                                                                                   |   |    |   |   |    |   |
| Noncurrent accrued and other liabilities                                                                               |   | 13,106  |   |   | 12,605  |   |
|                                                                                                                   |   |    |   |   |    |   |
| Deferred income taxes                                                                                                  |   | 14,318  |   |   | 14,261  |   |
|                                                                                                                   |   |    |   |   |    |   |
| Commitments and contingencies (Note 10)                                                                                |   |    |   |   |    |   |
|                                                                                                                   |   |    |   |   |    |   |
| Stockholders' equity:                                                                                                  |   |    |   |   |    |   |
| Series B 12% cumulative, convertible preferred stock, $100 par value; 20,000 shares issued and outstanding             |   | 2,000   |   |   | 2,000   |   |
| Series D 6% cumulative, convertible Class C preferred stock, no par value; 1,000,000 shares issued                     |   | 1,000   |   |   | 1,000   |   |
| Common stock, $.10 par value; 75,000,000 shares authorized, 26,444,904 shares issued (25,476,534 at December 31, 2010) |   | 2,645   |   |   | 2,548   |   |
| Capital in excess of par value                                                                                         |   | 157,626 |   |   | 131,845 |   |
| Retained earnings                                                                                                      |   | 90,949  |   |   | 70,351  |   |
|                                                                                                                   |   | 254,220 |   |   | 207,744 |   |
| Less treasury stock at cost:                                                                                           |   |    |   |   |    |   |
| Common stock, 4,320,462 shares                                                                                         |   | 28,374  |   |   | 28,374  |   |
| Total stockholders' equity                                                                                             |   | 225,846 |   |   | 179,370 |   |
|                                                                                                                   | $      | 424,215 |   | $      | 387,981 |   |

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Table of Contents

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands, Except Per Share Amounts) |
|--------|------------------------------------------|

| Net sales                                                                                                | $      | 177,493 |   |   | $      | 130,410 |   |
|----------------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|
| Cost of sales                                                                                            |   | 123,639 |   |   |   | 102,144 |   |
| Gross profit                                                                                             |   | 53,854  |   |   |   | 28,266  |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Selling, general and administrative expense                                                              |   | 20,585  |   |   |   | 24,589  |   |
| Provisions for losses on accounts receivable                                                             |   | 42      |   |   |   | 9       |   |
| Other expense                                                                                            |   | 62      |   |   |   | 58      |   |
| Other income                                                                                             |   | (872    | )      |   |   | (806    | )      |
| Operating income                                                                                         |   | 34,037  |   |   |   | 4,416   |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Interest expense                                                                                         |   | 1,712   |   |   |   | 2,080   |   |
| Non-operating other income, net                                                                          |   | (7      | )      |   |   | (38     | )      |
| Income from continuing operations before provisions for income taxes and equity in earnings of affiliate |   | 32,332  |   |   |   | 2,374   |   |
| Provisions for income taxes                                                                              |   | 11,657  |   |   |   | 912     |   |
| Equity in earnings of affiliate                                                                          |   | (285    | )      |   |   | (261    | )      |
| Income from continuing operations                                                                        |   | 20,960  |   |   |   | 1,723   |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Net loss from discontinued operations                                                                    |   | 57      |   |   |   | 5       |   |
| Net income                                                                                               |   | 20,903  |   |   |   | 1,718   |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Dividends on preferred stocks                                                                            |   | 305     |   |   |   | 305     |   |
| Net income applicable to common stock                                                                    | $      | 20,598  |   |   | $      | 1,413   |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Weighted-average common shares:                                                                          |   |    |   |   |   |    |   |
| Basic                                                                                                    |   | 21,180  |   |   |   | 21,226  |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Diluted                                                                                                  |   | 23,444  |   |   |   | 21,364  |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Income per common share:                                                                                 |   |    |   |   |   |    |   |
| Basic                                                                                                    | $      | .97     |   |   | $      | .07     |   |
|                                                                                                     |   |    |   |   |   |    |   |
| Diluted                                                                                                  | $      | .90     |   |   | $      | .07     |   |
|                                                                                                     |   |    |   |   |   |    |   |

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Table of Contents

|   |  Common StockShares |   | Non-Redeemable PreferredStock |   |  CommonStock Par Value |   |  Capital in Excess of Par Value |   |   Retained Earnings |   |  Treasury Stock-Common |   |    Total |
|--------|--------------------------|--------|-------------------------------|--------|-----------------------------|--------|--------------------------------------|--------|-------------------------------|--------|-----------------------------|--------|-------------------------|

|   | (In Thousands) |
|--------|----------------|

| Balance at December 31, 2010                                       | 25,477 | $      | 3,000  | $      | 2,548  | $      | 131,845 |   | $      | 70,351 |   | $      | (28,374 | )      | $      | 179,370 |   |
|--------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|--------|---------|--------|--------|---------|--------|
| Net income and comprehensive income                                |   |   |   |   |   |   |    |   |   | 20,903 |   |   |    |   |   | 20,903  |   |
| Dividends paid on preferred stocks                                 |   |   |   |   |   |   |    |   |   | (305   | )      |   |    |   |   | (305    | )      |
| Stock-based compensation                                           |   |   |   |   |   |   | 254     |   |   |   |   |   |    |   |   | 254     |   |
| Conversion of debentures to common stock                           | 888    |   |   |   | 89     |   | 24,319  |   |   |   |   |   |    |   |   | 24,408  |   |
| Exercise of stock options                                          | 80     |   |   |   | 8      |   | 505     |   |   |   |   |   |    |   |   | 513     |   |
| Excess income tax benefit associated with stock-based compensation |   |   |   |   |   |   | 703     |   |   |   |   |   |    |   |   | 703     |   |
| Balance at March 31, 2011                                          | 26,445 | $      | 3,000  | $      | 2,645  | $      | 157,626 |   | $      | 90,949 |   | $      | (28,374 | )      | $      | 225,846 |   |

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Table of Contents

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Cash flows from continuing operating activities:                                                    |   |    |   |   |   |    |   |
|-----------------------------------------------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|
| Net income                                                                                          | $      | 20,903  |   |   | $      | 1,718   |   |
| Adjustments to reconcile net income to net cash provided (used) by continuing operating activities: |   |    |   |   |   |    |   |
| Net loss from discontinued operations                                                               |   | 57      |   |   |   | 5       |   |
| Deferred income taxes                                                                               |   | (37     | )      |   |   | 189     |   |
| Expense associated with modification of secured term loan                                           |   | 387     |   |   |   | -       |   |
| Expense associated with induced conversion of 5.5% convertible debentures                           |   | 558     |   |   |   | -       |   |
| Loss (gain) on sales and disposals of property and equipment                                        |   | (19     | )      |   |   | 3       |   |
| Gain on property insurance recoveries associated with property, plant and equipment                 |   | -       |   |   |   | (495    | )      |
| Depreciation of property, plant and equipment                                                       |   | 4,592   |   |   |   | 4,060   |   |
| Amortization                                                                                        |   | 153     |   |   |   | 153     |   |
| Stock-based compensation                                                                            |   | 254     |   |   |   | 247     |   |
| Provisions for losses on accounts receivable                                                        |   | 42      |   |   |   | 9       |   |
| Provision for (realization of) losses on inventory                                                  |   | (15     | )      |   |   | 118     |   |
| Realization of losses on firm sales commitments                                                     |   | -       |   |   |   | (351    | )      |
| Equity in earnings of affiliate                                                                     |   | (285    | )      |   |   | (261    | )      |
| Distributions received from affiliate                                                               |   | 400     |   |   |   | 140     |   |
| Changes in fair value of commodities contracts                                                      |   | 82      |   |   |   | 310     |   |
| Changes in fair value of interest rate contracts                                                    |   | (52     | )      |   |   | 220     |   |
| Other                                                                                               |   | -       |   |   |   | (10     | )      |
| Cash provided (used) by changes in assets and liabilities:                                          |   |    |   |   |   |    |   |
| Accounts receivable                                                                                 |   | (1,871  | )      |   |   | (11,323 | )      |
| Inventories                                                                                         |   | (10,649 | )      |   |   | (10,218 | )      |
| Prepaid and accrued income taxes                                                                    |   | 2,300   |   |   |   | 461     |   |
| Other supplies and prepaid items                                                                    |   | (2,747  | )      |   |   | 351     |   |
| Accounts payable                                                                                    |   | (4,488  | )      |   |   | 3,291   |   |
| Accrued payroll and benefits                                                                        |   | 2,301   |   |   |   | 1,885   |   |
| Commodities contracts                                                                               |   | 501     |   |   |   | 124     |   |
| Customer deposits                                                                                   |   | 3,588   |   |   |   | 179     |   |
| Other current and noncurrent liabilities                                                            |   | 382     |   |   |   | 958     |   |
| Net cash provided (used) by continuing operating activities                                         |   | 16,337  |   |   |   | (8,237  | )      |
|                                                                                                |   |    |   |   |   |    |   |
| Cash flows from continuing investing activities:                                                    |   |    |   |   |   |    |   |
| Capital expenditures                                                                                |   | (4,579  | )      |   |   | (6,524  | )      |
| Proceeds from property insurance recoveries associated with property, plant and equipment           |   | -       |   |   |   | 1,670   |   |
| Proceeds from sales of property and equipment                                                       |   | 19      |   |   |   | 2       |   |
| Proceeds from short-term investments                                                                |   | 10,012  |   |   |   | 10,051  |   |
| Purchase of short-term investments                                                                  |   | (9      | )      |   |   | (10,000 | )      |
| Deposits of restricted cash                                                                         |   | -       |   |   |   | (552    | )      |
| Proceeds from sales of carbon credits                                                               |   | 673     |   |   |   | -       |   |
| Payments on contractual obligations – carbon credits                                          |   | (673    | )      |   |   | -       |   |
| Other assets                                                                                        |   | (86     | )      |   |   | (209    | )      |
| Net cash provided (used) by continuing investing activities                                         |   | 5,357   |   |   |   | (5,562  | )      |

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Table of Contents

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Cash flows from continuing financing activities:                                                        |   |     |   |   |   |     |   |
|---------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|--------|----------|--------|
| Proceeds from revolving debt facility                                                                   | $      | 156,715  |   |   | $      | 113,111  |   |
| Payments on revolving debt facility                                                                     |   | (156,715 | )      |   |   | (113,111 | )      |
| Proceeds from modification of secured term loan, net of fees                                            |   | 10,347   |   |   |   | -        |   |
| Proceeds from other long-term debt, net of fees                                                         |   | -        |   |   |   | 47       |   |
| Payments on other long-term debt                                                                        |   | (541     | )      |   |   | (1,588   | )      |
| Payments of debt issuance costs                                                                         |   | (108     | )      |   |   | -        |   |
| Payments on short-term financing                                                                        |   | (1,139   | )      |   |   | (1,112   | )      |
| Proceeds from exercise of stock options                                                                 |   | 513      |   |   |   | 22       |   |
| Excess income tax benefit associated with stock-based compensation                                      |   | 703      |   |   |   | 136      |   |
| Dividends paid on preferred stocks                                                                      |   | (305     | )      |   |   | (305     | )      |
| Net cash provided (used) by continuing financing activities                                             |   | 9,470    |   |   |   | (2,800   | )      |
|                                                                                                    |   |     |   |   |   |     |   |
| Cash flows of discontinued operations:                                                                  |   |     |   |   |   |     |   |
| Operating cash flows                                                                                    |   | (65      | )      |   |   | (73      | )      |
| Net increase (decrease) in cash and cash equivalents                                                    |   | 31,099   |   |   |   | (16,672  | )      |
|                                                                                                    |   |     |   |   |   |     |   |
| Cash and cash equivalents at beginning of period                                                   |   | 66,946   |   |   |   | 61,739   |   |
| Cash and cash equivalents at end of period                                                              | $      | 98,045   |   |   | $      | 45,067   |   |
|                                                                                                    |   |     |   |   |   |     |   |
| Supplemental cash flow information:                                                                     |   |     |   |   |   |     |   |
|                                                                                                    |   |     |   |   |   |     |   |
| Cash payments for income taxes, net of refunds                                                          | $      | 8,654    |   |   | $      | 150      |   |
|                                                                                                    |   |     |   |   |   |     |   |
| Noncash investing and financing activities:                                                             |   |     |   |   |   |     |   |
|                                                                                                    |   |     |   |   |   |     |   |
| Current other assets, accounts payable and long-term debt associated with property, plant and equipment | $      | 2,507    |   |   | $      | 6,074    |   |
| Debt issuance costs associated with the modification of the secured term loan                           | $      | 601      |   |   | $      | -        |   |
| Debt issuance costs associated with 5.5% debentures converted to common stock                           | $      | 328      |   |   | $      | -        |   |
| Accounts payable associated with 5.5% debentures converted to common stock                              | $      | 558      |   |   | $      | -        |   |
| Accrued liabilities associated with 5.5% debentures converted to common stock                           | $      | 336      |   |   | $      | -        |   |
| 5.5% debentures converted to common stock                                                               | $      | 24,400   |   |   | $      | -        |   |

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Table of Contents

|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

| Numerator:                                                                                                                                    |   |       |   |   |   |       |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------|--------|------------|--------|--------|--------|------------|--------|
| Net income                                                                                                                                    | $      | 20,903     |   |   | $      | 1,718      |   |
| Dividends on Series B Preferred                                                                                                               |   | (240       | )      |   |   | (240       | )      |
| Dividends on Series D Preferred                                                                                                               |   | (60        | )      |   |   | (60        | )      |
| Dividends on Noncumulative Preferred                                                                                                          |   | (5         | )      |   |   | (5         | )      |
| Total dividends on preferred stock                                                                                                            |   | (305       | )      |   |   | (305       | )      |
| Numerator for basic net income per common share - net income applicable to common stock                                                       |   | 20,598     |   |   |   | 1,413      |   |
| Dividends on preferred stock assumed to be converted, if dilutive                                                                             |   | 305        |   |   |   | -          |   |
| Interest expense including amortization of debt issuance costs, net of income taxes, on convertible debt assumed to be converted, if dilutive |   | 265        |   |   |   | -          |   |
| Numerator for diluted net income per common share                                                                                             | $      | 21,168     |   |   | $      | 1,413      |   |
|                                                                                                                                          |   |       |   |   |   |       |   |
| Denominator:                                                                                                                                  |   |       |   |   |   |       |   |
| Denominator for basic net income per common share - weighted-average shares                                                                   |   | 21,179,800 |   |   |   | 21,226,411 |   |
| Effect of dilutive securities:                                                                                                                |   |       |   |   |   |       |   |
| Convertible notes payable                                                                                                                     |   | 973,292    |   |   |   | 4,000      |   |
| Convertible preferred stock                                                                                                                   |   | 935,626    |   |   |   | -          |   |
| Stock options                                                                                                                                 |   | 355,681    |   |   |   | 133,192    |   |
| Dilutive potential common shares                                                                                                              |   | 2,264,599  |   |   |   | 137,192    |   |
| Denominator for diluted net income per common share - adjusted weighted-average shares and assumed conversions                                |   | 23,444,399 |   |   |   | 21,363,603 |   |
|                                                                                                                                          |   |       |   |   |   |       |   |
| Basic net income per common share                                                                                                             | $      | .97        |   |   | $      | .07        |   |
|                                                                                                                                          |   |       |   |   |   |       |   |
| Diluted net income per common share                                                                                                           | $      | .90        |   |   | $      | .07        |   |

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Table of Contents

|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

| Stock options               | 2,889 |   |   | 375,000   |
|-----------------------------|-------|--------|--------|-----------|
| Convertible notes payable   | -     |   |   | 1,070,160 |
| Convertible preferred stock | -     |   |   | 936,846   |
|                        | 2,889 |   |   | 2,382,006 |

|   |   | March 31,2011 |   | December 31,2010 |
|--------|--------|---------------|--------|------------------|

|   | (In Thousands) |
|--------|----------------|

| Trade receivables               | $      | 75,775 |   |   | $      | 73,367 |   |
|---------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Other                           |   | 982    |   |   |   | 1,528  |   |
|                            |   | 76,757 |   |   |   | 74,895 |   |
| Allowance for doubtful accounts |   | (680   | )      |   |   | (636   | )      |
|                            | $      | 76,077 |   |   | $      | 74,259 |   |

|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Balance at beginning of period        | $      | 1,793 |   |   | $      | 1,676 |   |
|---------------------------------------|--------|-------|--------|--------|--------|-------|--------|
| Provision for (realization of) losses |   | (15   | )      |   |   | 118   |   |
| Write-offs and disposals              |   | (3    | )      |   |   | (50   | )      |
| Balance at end of period              | $      | 1,775 |   |   | $      | 1,744 |   |

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|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |   |
|--------|------|--------|------|--------|

|   | (In Thousands) |
|--------|----------------|

| Precious metals expense           | $      | 2,110 |   |   | $      | 1,379 |   |
|-----------------------------------|--------|-------|--------|--------|--------|-------|--------|
| Recoveries of precious metals     |   | (752  | )      |   |   | -     |   |
| Gains on sales of precious metals |   | -     |   |   |   | (112  | )      |
| Precious metals expense, net      | $      | 1,358 |   |   | $      | 1,267 |   |

| ·   | the general partner failed to make its capital contribution of approximately $2.0 million to the Partnership, and |
|--------------------|-------------------------------------------------------------------------------------------------------------------|

| ·   | the general partner breached certain fiduciary duties and was unjustly enriched in its management of the Partnership. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

|   | March 31,2011 |   | December 31,2010 |
|--------|---------------|--------|------------------|

|   | (In Thousands) |
|--------|----------------|

| Accrued payroll and benefits                                          |   | $      | 9,043  |   |   | $      | 6,742  |   |
|-----------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Accrued income taxes                                                  |   |   | 7,135  |   |   |   | 4,835  |   |
| Customer deposits                                                     |   |   | 6,174  |   |   |   | 2,586  |   |
| Deferred revenue on extended warranty contracts                       |   |   | 5,841  |   |   |   | 5,675  |   |
| Accrued warranty costs                                                |   |   | 4,284  |   |   |   | 3,996  |   |
| Accrued death benefits                                                |   |   | 4,048  |   |   |   | 4,058  |   |
| Accrued group health and workers’ compensation insurance claims |   |   | 2,398  |   |   |   | 2,459  |   |
| Fair value of derivatives and other                                   |   |   | 1,843  |   |   |   | 2,539  |   |
| Accrued contractual manufacturing obligations                         |   |   | 1,801  |   |   |   | 1,968  |   |
| Accrued executive benefits                                            |   |   | 1,163  |   |   |   | 1,187  |   |
| Accrued precious metals costs                                         |   |   | 1,128  |   |   |   | 846    |   |
| Accrued general liability insurance claims                            |   |   | 1,120  |   |   |   | 1,230  |   |
| Accrued commissions                                                   |   |   | 817    |   |   |   | 1,279  |   |
| Accrued interest                                                      |   |   | 610    |   |   |   | 1,343  |   |
| Other                                                                 |   |   | 4,198  |   |   |   | 3,369  |   |
|                                                                  |   |   | 51,603 |   |   |   | 44,112 |   |
| Less noncurrent portion                                               |   |   | 13,106 |   |   |   | 12,605 |   |
| Current portion of accrued and other liabilities                      |   | $      | 38,497 |   |   | $      | 31,507 |   |

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|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011           |   | 2010 |
|--------|----------------|--------|------|
|   | (In Thousands) |

| Balance at beginning of period        | $      | 3,996  |   |   | $      | 3,138  |   |
|---------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Amounts charged to costs and expenses |   | 1,627  |   |   |   | 998    |   |
| Costs incurred                        |   | (1,339 | )      |   |   | (1,145 | )      |
| Balance at end of period              | $      | 4,284  |   |   | $      | 2,991  |   |

|   | March 31, |   | December 31, |
|--------|-----------|--------|--------------|
|   | 2011      |   | 2010         |

|   | (In Thousands) |
|--------|----------------|

| Working Capital Revolver Loan due 2012 (A)                                                                                      | $      | -      |   | $      | -      |   |
|---------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| 5.5% Convertible Senior Subordinated Notes due 2012 (B)                                                                         |   | 2,500  |   |   | 26,900 |   |
| Secured Term Loan (C)                                                                                                           |   | 60,000 |   |   | 48,773 |   |
| Other, with a current weighted-average interest rate of 6.66%, most of which is secured by machinery, equipment and real estate |   | 19,178 |   |   | 19,719 |   |
|                                                                                                                            |   | 81,678 |   |   | 95,392 |   |
| Less current portion of long-term debt                                                                                          |   | 5,340  |   |   | 2,328  |   |
| Long-term debt due after one year                                                                                               | $      | 76,338 |   | $      | 93,064 |   |

----

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| ·   | incur additional indebtedness, |
|--------------------|--------------------------------|

| ·   | incur liens, |
|--------------------|--------------|

| ·   | make restricted payments or loans to affiliates who are not Borrowers, |
|--------------------|------------------------------------------------------------------------|

| ·   | engage in mergers, consolidations or other forms of recapitalization, or |
|--------------------|--------------------------------------------------------------------------|

| ·   | dispose assets. |
|--------------------|-----------------|

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| A. | Environmental Matters |
|----|-----------------------|

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| ·   | fraudulent inducement and fraud, |
|--------------------|----------------------------------|

| ·   | violation of 10(b) of the Exchange Act and Rule 10b-5, |
|--------------------|--------------------------------------------------------|

| ·   | violation of 17-12A501 of the Kansas Uniform Securities Act, and |
|--------------------|------------------------------------------------------------------|

| ·   | breach of contract. |
|--------------------|---------------------|

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|   | Fair Value Measurements atMarch 31, 2011 Using |
|--------|------------------------------------------------|

|     Description |   |  Total FairValue atMarch 31,2011 |   | Quoted Prices in ActiveMarkets for Identical Assets (Level 1) |   | SignificantOtherObservableInputs(Level 2) |   |  Significant Unobservable Inputs(Level 3) |   |  Total FairValue atDecember 31,2010 |
|-------------------------------------|--------|---------------------------------------|--------|--------------------------------------------------------------------|--------|-------------------------------------------|--------|------------------------------------------------|--------|------------------------------------------|

|   | (In Thousands) |
|--------|----------------|

| Assets - Supplies, prepaid items and other:                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------|
| Commodities contracts                                               |   | $      | 178    |   |   | $      | 178    |   |   | $      | -      |   |   | $      | -       |   |   | $ | 761 |   |
| Carbon credits                                                      |   |   | 11     |   |   |   | -      |   |   |   | -      |   |   |   | 11      |   |   |   | 644 |   |
| Foreign exchange contracts                                          |   |   | 29     |   |   |   | -      |   |   |   | 29     |   |   |   |  - |   |   |   | 49 |   |
| Total                                                               |   | $      | 218    |   |   | $      | 178    |   |   | $      | 29     |   |   | $      | 11      |   |   | $ | 1,454 |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
| Liabilities - Current and noncurrent accrued and other liabilities: |   |   |   |   |   |   |   |   |   |   |   |   |   |   |    |   |   |   |   |   |
| Contractual obligations – carbon credits                      |   | $      | -      |   |   | $      | -      |   |   | $      | -      |   |   | $      | -       |   |   | $ | 644 |   |
| Interest rate contracts                                             |   |   | 1,843  |   |   |   | -      |   |   |   | 1,843  |   |   |   | -       |   |   |   | 1,895 |   |
| Total                                                               |   | $      | 1,843  |   |   | $      | -      |   |   | $      | 1,843  |   |   | $      | -       |   |   | $ | 2,539 |   |

|   | Assets |   | Liabilities |
|--------|--------|--------|-------------|

|   | (In Thousands) |
|--------|----------------|

| Beginning balance                                              | $      | 644  |   |   | $      | (644 | )      |
|----------------------------------------------------------------|--------|------|--------|--------|--------|------|--------|
| Transfers into Level 3                                         |   | -    |   |   |   | -    |   |
| Transfers out of Level 3                                       |   | -    |   |   |   | -    |   |
| Total realized and unrealized gain (loss) included in earnings |   | 40   |   |   |   | (40  | )      |
| Purchases                                                      |   | -    |   |   |   | -    |   |
| Issuances                                                      |   | -    |   |   |   | -    |   |
| Sales                                                          |   | (673 | )      |   |   | -    |   |
| Settlements                                                    |   | -    |   |   |   | 684  |   |
| Ending balance                                                 | $      | 11   |   |   | $      | -    |   |

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|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Total net losses included in earnings:                                   |   |   |   |   |   |   |   |
|--------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Cost of sales – Commodities contracts                              | $      | (151   | )      |   | $      | (688   | )      |
| Cost of sales – Foreign exchange contracts                         |   | 40     |   |   |   | (24    | )      |
| Other income – Carbon credits                                      |   | 40     |   |   |   | -      |   |
| Other expense – Contractual obligations relating to carbon credits |   | (40    | )      |   |   | -      |   |
| Interest expense – Interest rate contracts                         |   | (338   | )      |   |   | (614   | )      |
|                                                                     | $      | (449   | )      |   | $      | (1,326 | )      |

| Change in unrealized gains and losses relating to contracts still held at period end: |   |   |   |   |   |   |   |
|---------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Cost of sales – Commodities contracts                                           | $      | (82    | )      |   | $      | (310   | )      |
| Cost of sales – Foreign exchange contracts                                      |   | 18     |   |   |   | (5     | )      |
| Interest expense – Interest rate contracts                                      |   | 52     |   |   |   | (220   | )      |
|                                                                                  | $      | (12    | )      |   | $      | (535   | )      |

|   | March 31, 2011 |   | December 31, 2010 |
|--------|----------------|--------|-------------------|

|   | Estimated Fair Value |   | Carrying Value |   | Estimated Fair Value |   | Carrying Value |
|--------|----------------------|--------|----------------|--------|----------------------|--------|---------------------|

|   | (In Thousands) |
|--------|----------------|

| Variable Rate:                             |   |   |   |   |   |   |   |   |   |   |   |   |
|--------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Secured Term Loan (1)                      |   | $      | 60,000 |   |   | $      | 60,000 |   |   | $      | 26,721 |   |   | $ | 48,773 |   |
| Working Capital Revolver Loan              |   |   | -      |   |   |   | -      |   |   |   | -      |   |   |   | - |   |
| Other debt (2)                             |   |   | 2,270  |   |   |   | 2,408  |   |   |   | 2,437  |   |   |   | 2,437 |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Fixed Rate:                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 5.5% Convertible Senior Subordinated Notes |   |   | 3,607  |   |   |   | 2,500  |   |   |   | 27,976 |   |   |   | 26,900 |   |
| Other bank debt and equipment financing    |   |   | 16,737 |   |   |   | 16,770 |   |   |   | 17,251 |   |   |   | 17,282 |   |
|                                       |   | $      | 82,614 |   |   | $      | 81,678 |   |   | $      | 74,385 |   |   | $ | 95,392 |   |

| (1)   | Includes a fixed interest rate of 5.15% on the principal amount of $25 million at March 31, 2011. |
|-----------------|---------------------------------------------------------------------------------------------------|

| (2)   | Includes a variable rate debt agreement with a minimum interest rate of 6%, which interest rate was 6% at March 31, 2011 and December 31, 2010. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Current:                           |   |   |   |   |   |   |   |
|------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Federal                            | $      | 9,148  |   |   | $      | 516    |   |
| State                              |   | 2,546  |   |   |   | 207    |   |
| Total current provisions           | $      | 11,694 |   |   | $      | 723    |   |
|                               |   |   |   |   |   |   |   |
| Deferred:                          |   |   |   |   |   |   |   |
| Federal                            | $      | (36    | )      |   | $      | 177    |   |
| State                              |   | (1     | )      |   |   | 12     |   |
| Total deferred provision (benefit) |   | (37    | )      |   |   | 189    |   |
| Provisions for income taxes        | $      | 11,657 |   |   | $      | 912    |   |

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|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Other expense:                                                |   |    |   |   |   |      |   |
|---------------------------------------------------------------|--------|---------|--------|--------|--------|-----------|--------|
| Total other expense (1)                                       | $      | 62      |   |   | $      | 58        |   |
|                                                          |   |    |   |   |   |      |   |
| Other income:                                                 |   |    |   |   |   |      |   |
| Settlements of litigation and potential litigation (2)        | $      | 747     |   |   | $      | -         |   |
| Property insurance recoveries in excess oflosses incurred (3) |   |  - |   |   |   |  739 |   |
| Miscellaneous income (1)                                      |   | 125     |   |   |   | 67        |   |
| Total other income                                            | $      | 872     |   |   | $      | 806       |   |
|                                                          |   |    |   |   |   |      |   |
| Non-operating other income, net:                              |   |    |   |   |   |      |   |
| Interest income                                               | $      | 24      |   |   | $      | 56        |   |
| Miscellaneous expense (1)                                     |   | (17     | )      |   |   | (18       | )      |
| Total non-operating other income, net                         | $      | 7       |   |   | $      | 38        |   |

| (1)   | Amounts represent numerous unrelated transactions, none of which are individually significant requiring separate disclosure. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Amount relates primarily to the Chemical Business relating to a lawsuit filed in 2009 by Cherokee Nitrogen Company (“CNC”) against a vendor, which alleged that CNC suffered property damages and lost income as a result of the vendor’s negligence in installing certain equipment at the Cherokee Facility.  In January 2011, a settlement at mediation was finalized, which included a payment to CNC of $735,000. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | Amount relates to recoveries from a property insurance claim associated with one of our agricultural distribution centers operated by our Chemical Business. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Three Months EndedMarch 31, |
|--------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Net sales:                                                        |   |    |   |   |   |    |   |
|-------------------------------------------------------------------|--------|---------|--------|--------|--------|---------|--------|
| Climate Control                                                   | $      | 63,649  |   |   | $      | 53,671  |   |
| Chemical (1)                                                      |   | 111,431 |   |   |   | 74,872  |   |
| Other                                                             |   | 2,413   |   |   |   | 1,867   |   |
|                                                              | $      | 177,493 |   |   | $      | 130,410 |   |
|                                                              |   |    |   |   |   |    |   |
| Gross profit: (2)                                                 |   |    |   |   |   |    |   |
| Climate Control                                                   | $      | 21,486  |   |   | $      | 18,399  |   |
| Chemical (1) (3)                                                  |   | 31,468  |   |   |   | 9,158   |   |
| Other                                                             |   | 900     |   |   |   | 709     |   |
|                                                              | $      | 53,854  |   |   | $      | 28,266  |   |
|                                                              |   |    |   |   |   |    |   |
| Operating income: (4)                                             |   |    |   |   |   |    |   |
| Climate Control                                                   | $      | 8,441   |   |   | $      | 5,527   |   |
| Chemical (1) (3)                                                  |   | 29,098  |   |   |   | 1,885   |   |
| General corporate expenses and other business operations, net (5) |   | (3,502  | )      |   |   | (2,996  | )      |
|                                                              |   | 34,037  |   |   |   | 4,416   |   |
| Interest expense                                                  |   | (1,712  | )      |   |   | (2,080  | )      |
| Non-operating other income, net:                                  |   |    |   |   |   |    |   |
| Climate Control                                                   |   | 1       |   |   |   | 1       |   |
| Chemical                                                          |   | -       |   |   |   | 2       |   |
| Corporate and other business operations                           |   | 6       |   |   |   | 35      |   |
| Provisions for income taxes                                       |   | (11,657 | )      |   |   | (912    | )      |
| Equity in earnings of affiliate-Climate Control                   |   | 285     |   |   |   | 261     |   |
| Income from continuing operations                                 | $      | 20,960  |   |   | $      | 1,723   |   |

| (1)   | During the first quarter of 2011, the Pryor Facility had sustained production of anhydrous ammonia and UAN compared to limited production during the first quarter of 2010. For the first quarter of 2011, the Pryor Facility had net sales to unrelated third parties of $19.3 million and operating income of $8.6 million resulting from those sales. In addition, the Chemical Business realized a net benefit of $2.7 million from the utilization by our other facilities of lower cost ammonia produced at the Pryor Facility. By comparison for the first quarter of 2010, the Pryor Facility had $0.3 million of sales and an operating loss of $6.0 million. During the first quarter of 2011, production-related costs are classified as cost of sales while normal recurring selling, general and administrative expenses (“SG&A”) are classified as SG&A. Due to limited production at the Pryor Facility during the first quarter of 2010, most of the expenses incurred were classified as SG&A excluding the net loss on firm sales commitments. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Gross profit by business segment represents net sales less cost of sales. Gross profit classified as “Other” relates to the sales of industrial machinery and related components. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | During the first quarter of 2011 and 2010, we incurred expenses of $166,000 and $1,432,000, respectively, relating to planned major maintenance activities (“Turnarounds”). During the first quarter of 2011 and 2010, we recognized losses totaling $56,000 and $838,000, respectively, on our futures/forward contracts for natural gas. During the first quarter of 2010, we recognized sales with a gross profit of $761,000 higher than our comparable product sales made at lower market prices available during the first quarter of 2010.  These sales related to sales commitments with higher firm sales prices entered into during 2008. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| (4)   | Our chief operating decision makers use operating income by business segment for purposes of making decisions, which include resource allocations and performance evaluations. Operating income by business segment represents gross profit by business segment less SG&A incurred by each business segment plus other income and other expense earned/incurred by each business segment before general corporate expenses and other business operations, net. General corporate expenses and other business operations, net, consist of unallocated portions of gross profit, SG&A, other income and other expense. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (5)   | The amounts included are not allocated to our Climate Control and Chemical Businesses since these items are not included in the operating results reviewed by our chief operating decision makers for purposes of making decisions as discussed above. A detail of these amounts are as follows: |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    | Three Months EndedMarch 31, |
|--------------|-----------------------------|

|   | 2011 |   | 2010 |
|--------|------|--------|------|

|   | (In Thousands) |
|--------|----------------|

| Gross profit-Other                                                  | $      | 900    |   |   | $      | 709    |   |
|---------------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|
| Selling, general and administrative:                                |   |   |   |   |   |   |   |
| Personnel costs                                                     |   | (1,610 | )      |   |   | (1,747 | )      |
| Professional fees                                                   |   | (1,142 | )      |   |   | (1,170 | )      |
| All other                                                           |   | (1,694 | )      |   |   | (818   | )      |
| Total selling, general and administrative                           |   | (4,446 | )      |   |   | (3,735 | )      |
|                                                                |   |   |   |   |   |   |   |
| Other income                                                        |   | 47     |   |   |   | 40     |   |
| Other expense                                                       |   | (3     | )      |   |   | (10    | )      |
| Total general corporate expenses and other business operations, net | $      | (3,502 | )      |   | $      | (2,996 | )      |

|   | March 31,2011 |   | December 31,2010 |
|--------|---------------|--------|------------------|

|   | (In Thousands) |
|--------|----------------|

| Climate Control            | $      | 119,991 |   | $      | 112,894 |   |
|----------------------------|--------|---------|--------|--------|---------|--------|
| Chemical                   |   | 189,025 |   |   | 179,033 |   |
| Corporate assets and other |   | 115,199 |   |   | 96,054  |   |
| Total assets               | $      | 424,215 |   | $      | 387,981 |   |

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

| ·   | Climate Control Business manufactures and sells a broad range of air conditioning and heating products in the niche markets we serve consisting of geothermal and water source heat pumps, hydronic fan coils, large custom air handlers, modular geothermal chillers and other related products used to control the environment in commercial/institutional and residential new building construction, renovation of existing buildings and replacement of existing systems. For the first quarter of 2011, approximately 36% of our consolidated net sales relates to the Climate Control Business. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Chemical Business manufactures and sells nitrogen based chemical products produced from four plants located in Arkansas, Alabama, Oklahoma, and Texas for the industrial, mining and agricultural markets. Our products include high purity and commercial grade anhydrous ammonia, industrial and fertilizer grade AN, UAN, sulfuric acids, nitric acids in various concentrations, nitrogen solutions, DEF and various other products. For the first quarter of 2011, approximately 63% of our consolidated net sales relates to the Chemical Business. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Single-Family Residential |
|--------------------|---------------------------|

| ·   | Education |
|--------------------|-----------|

| ·   | Healthcare |
|--------------------|------------|

| ·   | Offices |
|--------------------|---------|

| ·   | Multi-Family Residential |
|--------------------|--------------------------|

| ·   | Lodging |
|--------------------|---------|

| ·   | Manufacturing |
|--------------------|---------------|

| ·   | Pharmaceutical |
|--------------------|----------------|

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|   | Percentage Change of |
|--------|----------------------|

|   | Tons |   | Dollars |
|--------|------|--------|---------|

|               | Increase |
|--------------------|----------|
| Chemical products: |     |

| Agricultural                              | 48 | % |   |   | 108 | % |
|-------------------------------------------|----|---|--------|--------|-----|---|
| Industrial acids and other                | 1  | % |   |   | 19  | % |
| Mining                                    | 13 | % |   |   | 22  | % |
|   Total weighted-average change | 19 | % |   |   | 49  | % |

|   | 2011 |   | 2010 |
|--------|------|--------|------|

| Natural gas average price per MMBtu based upon    Tennessee 500 pipeline pricing point | $ | 4.55 |   |   | $ | 5.64 |   |
|------------------------------------------------------------------------------------------------------------|---|------|--------|--------|---|------|--------|
| Ammonia average price based upon low Tampa price per metric ton                                       | $ | 512  |   |   | $ | 381  |   |
| Sulfur price based upon Tampa average quarterly price per long ton                                         | $ | 185  |   |   | $ | 90   |   |

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|   | March 31,2011         |   | December 31,2010 |
|--------|-----------------------|--------|------------------|
|   | (Dollars In Millions) |

| Cash and cash equivalents                              |   | $      | 98.0   |   |   | $      | 66.9   |   |
|--------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
| Short-term investments (1)                             |   |   | -      |   |   |   | 10.0   |   |
|                                                   |   | $      | 98.0   |   |   | $      | 76.9   |   |
|                                                   |   |   |   |   |   |   |   |   |
| Long-term debt:                                        |   |   |   |   |   |   |   |   |
| 2007 Debentures                                        |   | $      | 2.5    |   |   | $      | 26.9   |   |
| Secured Term Loan                                      |   |   | 60.0   |   |   |   | 48.8   |   |
| Other                                                  |   |   | 19.2   |   |   |   | 19.7   |   |
| Total long-term debt, including current portion        |   | $      | 81.7   |   |   | $      | 95.4   |   |
|                                                   |   |   |   |   |   |   |   |   |
| Total stockholders’ equity                       |   | $      | 225.8  |   |   | $      | 179.4  |   |
|                                                   |   |   |   |   |   |   |   |   |
| Long-term debt to stockholders’ equity ratio (2) |   |   | 0.4    |   |   |   | 0.5    |   |

| (1)   | These investments consist of certificates of deposit with an original maturity of 13 weeks. All of these investments were held by financial institutions within the United States and none of these investments were in excess of the federally insured limits. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | This ratio is based on total long-term debt divided by total stockholders’ equity and excludes the use of cash, cash equivalents and short-term investments to pay down debt. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | unrestricted payments up to $15 million LSB; |
|--------------------|----------------------------------------------|

| ·   | loans to LSB entered into subsequent to March 29, 2011, provided the aggregate amount of such loans do  not exceed $2.0 million at any time outstanding; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | amounts not to exceed $5.0 million annually under a certain management agreement between LSB and ThermaClime, provided certain conditions are met; |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the repayment of costs and expenses incurred by LSB that are directly allocable to ThermaClime or its subsidiaries for LSB’s provision of services under certain services agreement; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the amount of income taxes that ThermaClime would be required to pay if they were not consolidated with LSB, and |
|--------------------|------------------------------------------------------------------------------------------------------------------|

| ·   | an amount not to exceed fifty percent (50%) of ThermaClime's consolidated net income during each fiscal year determined in accordance with generally accepted accounting principles plus income taxes paid to LSB within the previous bullet above, provided that certain other conditions are met. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $0.06 per share on our outstanding Series D Preferred for an aggregate dividend of $60,000; |
|--------------------|---------------------------------------------------------------------------------------------|

| ·   | $12.00 per share on our outstanding Series B Preferred for an aggregate dividend of $240,000;  and |
|--------------------|--------------------------------------------------------------------------------------------------------------|

| ·   | $10.00 per share on our outstanding Noncumulative Preferred for an aggregate dividend of approximately $4,700. |
|--------------------|----------------------------------------------------------------------------------------------------------------|

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|   |  2011 |   |  2010 |   |  Change |   | Percentage Change |
|--------|------------|--------|------------|--------|--------------|--------|-------------------|

|   | (Dollars In Thousands) |
|--------|------------------------|

| Net sales:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|-----------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Geothermal and water source heat pumps              |   | $      | 42,571 |   |   |   | $      | 36,958 |   |   |   | $      | 5,613  |   |   |   | 15.2 | % |
| Hydronic fan coils                                  |   |   | 11,089 |   |   |   |   | 7,274  |   |   |   |   | 3,815  |   |   |   | 52.4 | % |
| Other HVAC products                                 |   |   | 9,989  |   |   |   |   | 9,439  |   |   |   |   | 550    |   |   |   | 5.8 | % |
| Total Climate Control                               |   | $      | 63,649 |   |   |   | $      | 53,671 |   |   |   | $      | 9,978  |   |   |   | 18.6 | % |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit – Climate Control                |   | $      | 21,486 |   |   |   | $      | 18,399 |   |   |   | $      | 3,087  |   |   |   | 16.8 | % |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit percentage – Climate Control (1) |   |   | 33.8   |   | %      |   |   | 34.3   |   | %      |   |   | (0.5   | )      | % |   |   |   |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating income – Climate Control            |   | $      | 8,441  |   |   |   | $      | 5,527  |   |   |   | $      | 2,914  |   |   |   | 52.7 | % |

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| · | Net sales of our geothermal and water source heat pump products increased primarily as a result of an 18% improvement in sales of our commercial products and a 10% improvement in sales of our residential products due to the higher backlog at the beginning of 2011 and stronger product order levels during the first quarter of 2011. During the first quarter of 2011, we continued to maintain a market share leadership position of approximately 42%, based on preliminary market data supplied by the Air-Conditioning, Heating and Refrigeration Institute (“AHRI”); |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Net sales of our hydronic fan coils increased primarily due to a 29% increase in the number of units sold due to increased construction and renovation activities in the markets we serve and a 10% increase in the average unit sales price due to change in product mix. During the first quarter of 2011, we continued to have a market share leadership position of approximately 26% based on preliminary market data supplied by the AHRI; |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| · | Net sales of our other HVAC products increased primarily as the result of an increase in the sales of our large custom air handlers and modular chillers partially offset by a decrease in engineering and construction services. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  2011 |   |  2010 |   |  Change |   | Percentage Change |
|--------|------------|--------|------------|--------|--------------|--------|-------------------|

|   | (Dollars In Thousands) |
|--------|------------------------|

| Net sales:                                   |   |    |   |   |   |   |   |   |   |   |   |   |   |          |
|----------------------------------------------|--------|---------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|---------------|
| Agricultural products                        | $      | 51,101  |   |   | $      | 24,536 |   |   | $      | 26,565 |   |   | 108.3  |  %       |
| Industrial acids and other chemical products |   | 36,843  |   |   |   | 31,061 |   |   |   | 5,782  |   |   | 18.6   |   %      |
| Mining products                              |   | 23,487  |   |   |   | 19,275 |   |   |   | 4,212  |   |   | 21.9   |  %       |
| Total Chemical                               | $      | 111,431 |   |   | $      | 74,872 |   |   | $      | 36,559 |   |   | 48.8   |   %      |
|                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |          |
| Gross profit – Chemical                | $      | 31,468  |   |   | $      | 9,158  |   |   | $      | 22,310 |   |   | 243.6  |   % |
|                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |          |
| Gross profit percentage – Chemical (1) |   | 28.2    |   | %      |   | 12.2   |   | %      |   | 16.0   |   | %      |   |          |
|                                         |   |    |   |   |   |   |   |   |   |   |   |   |   |          |
| Operating income – Chemical            | $      | 29,098  |   |   | $      | 1,885  |   |   | $      | 27,213 |   |   | 1443.7 |   % |

| ·   | Agricultural products sales - Agricultural products sales increased $26.6 million, or 108%, primarily due to increased sales from our Pryor Facility and increased selling prices driven by an increase in market demand for crop nutrients and strong grain commodity prices. Tons of agricultural products sold increased 48% including an increase of 44,000 tons of UAN and 7,000 tons of ammonia sold into agricultural markets from the Pryor Facility. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ·   | Industrial acids and other chemical products sales - Industrial acids and other products sales increased $5.8 million, or 19%, primarily due to increased selling prices resulting from the pass through of higher raw material costs pursuant to the terms of sales agreements with certain customers. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Mining products sales - Mining products sales increased $4.2 million, or 22%, and volumes increased 13% including an increase of 6,000 tons of industrial grade AN and 4,000 tons of AN solutions. Sales prices were higher driven by a general increase in raw material and other costs, which we are able to pass through to certain customers pursuant to the terms of supply agreements. Our industrial grade AN is primarily sold to one customer pursuant to a multi-year supply contract in which the customer agreed to purchase, and our El Dorado Facility agreed to reserve certain minimum volumes of industrial grade AN during 2011. Pursuant to the terms of the contract, the customer has been invoiced for the fixed costs and amounts associated with the reserved capacity despite not taking the minimum volume requirement during the first quarter of 2011. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $0.8 million reduction in gross profit from firm sales commitments made in prior periods and |
|--------------------|----------------------------------------------------------------------------------------------|

| ·   | $0.8 million reduction in losses on natural gas hedging contracts. |
|--------------------|--------------------------------------------------------------------|

|   |  2011 |   |  2010 |   |  Change |   | Percentage Change |
|--------|------------|--------|------------|--------|--------------|--------|-------------------|

|   | (Dollars In Thousands) |
|--------|------------------------|

| Net sales – Other                                      | $      | 2,413  |   |   | $      | 1,867  |   |   | $      | 546    |   |   |   |   | 29.2   | %      |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit – Other                                   | $      | 900    |   |   | $      | 709    |   |   | $      | 191    |   |   |   |   | 26.9   | %      |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Gross profit percentage – Other (1)                    |   | 37.3   |   | %      |   | 38.0   |   | %      |   | (0.7   | )      | %      |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| General corporate expense and other business operations, net | $      | (3,502 | )      |   | $      | (2,996 | )      |   | $      | (506   | )      |   |   |   | 16.9   | %      |

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|   | · | an increase of $4.0 million relating to the Chemical Business as the result of sales associated with the spring fertilizer season and sales from our Pryor Facility partially offset by |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a decrease of $2.2 million relating to the Climate Control Business due primarily to lower sales during the latter portion of the first quarter of 2011 as compared to the same period of the fourth quarter of 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase of $7.9 million relating to the Climate Control Business due primarily to higher inventory costs and levels of inventory on hand and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase of $3.0 million relating to the Chemical Business primarily relating to higher levels of inventory on hand in anticipation of higher demand associated with the spring fertilizer season and the increased production at our Pryor Facility. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | a decrease of $7.2 million in the Chemical Business primarily as the result of less raw material purchases at our El Dorado and Baytown Facilities partially offset by |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | an increase of $2.5 million in the Climate Control Business due primarily to more raw material purchases in anticipation of higher product demands. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------|

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| · | long-term debt, |
|--------|-----------------|

| · | interest payments on long-term debt, |
|--------|--------------------------------------|

| · | interest rate contracts, |
|--------|--------------------------|

| · | capital expenditures, |
|--------|-----------------------|

| · | operating leases, |
|--------|-------------------|

| · | futures/forward contracts, |
|--------|----------------------------|

| · | contractual obligations – carbon credits |
|--------|------------------------------------------------|

| · | accrued contractual manufacturing obligations, and |
|--------|----------------------------------------------------|

| · | other contractual obligations. |
|--------|--------------------------------|

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| · | our purchase obligations relating to natural gas contracts were $9.9 million as of March 31, 2011, |
|--------|----------------------------------------------------------------------------------------------------|

| · | our contractual obligations relating to futures/forward contracts were $3.3 million as of March 31, 2011 and |
|--------|--------------------------------------------------------------------------------------------------------------|

| · | our committed capital expenditures were approximately $26.5 million for the remainder of 2011. |
|--------|------------------------------------------------------------------------------------------------|

Item 3. Quantitative and Qualitative Disclosures about Market Risk

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Item 4. Controls and Procedures

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SPECIAL NOTE REGARDING

FORWARD-LOOKING STATEMENTS

| ·   |   the overall commercial/institutional construction and residential construction sectors increasing modestly during the remainder of 2011;                                                                                                                                                 |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   |   the potential for growth in our highly energy-efficient geothermal water-source heat pumps benefiting significantly from government stimulus programs, including various tax incentives;                                                                                                 |
| ·   |   demand for industrial and mining products continuing to increase during the remainder of 2011 as the industrial markets in the United States continue to recover;                                                                                                                        |
| ·   |   the current outlook according to most market indicators point to positive supply and demand fundamentals for the types of nitrogen fertilizer products we produce and sell;                                                                                                              |
| ·   |   shipment of backlog;                                                                                                                                                                                                                                                                     |
| ·   |   achievement of planned production rates at the Pryor Facility;                                                                                                                                                                                                                           |
| ·   |   the planned Turnaround in the third quarter of 2011 at the Pryor Facility improving production rates;                                                                                                                                                                                    |
| ·   |   the cost to construct the wastewater pipeline and associated operating costs and that the construction would be completed in 2013;                                                                                                                                                       |
| ·   |   expenses in connection with environmental regulatory issues for the remainder of 2011;                                                                                                                                                                                                   |
| ·   |   future emission regulations or new laws affecting our businesses, operations, liquidity or financial results;                                                                                                                                                                            |
| ·   |   a continuing slow recovery in the short-term as compared to pre-recession levels relating to the Climate Control Business;                                                                                                                                                               |
| ·   |   the recently enacted federal tax credits for GHPs having a positive impact on sales of those highly energy efficient and green products;                                                                                                                                                 |
| ·   |   our primary cash needs for the remainder of 2011 being for working capital to fund our operations, capital expenditures, and general obligations and funding these cash needs from internally generated cash flows, cash on  hand, and an additional $15 million in financing; |
| ·   |   the amount of committed and planned capital expenditures for the remainder of 2011 and being funded from working capital;                                                                                                                                                                |
| ·   |   the amount and timing of Turnarounds for the remainder of 2011;                                                                                                                                                                                                                          |
| ·   |   the amount of advanced manufacturing energy credits to be utilized to partially offset our federal tax liability for 2010 and 2011;                                                                                                                                                      |
| ·   |   the amount of capital expenditures necessary in order to bring the equipment into compliance with the Clean Air Act could be substantial;                                                                                                                                                |
| ·   |   meeting all required covenant tests for all the remaining quarters of 2011;                                                                                                                                                                                                              |
| ·   |   costs relating to environmental and health laws and enforcement policies thereunder; and                                                                                                                                                                                                 |

| ·   |   negotiate renewal of our Working Capital Revolver Loan. |
|--------------------|----------------------------------------------------------------|

| ·   |   changes in general economic conditions, both domestic and foreign,                                                                                                        |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   |   material reduction in revenues,                                                                                                                                           |
| ·   |   material changes in interest rates,                                                                                                                                       |
| ·   |   ability to collect in a timely manner a material amount of receivables,                                                                                                   |
| ·   |   increased competitive pressures,                                                                                                                                          |
| ·   |   changes in federal, state and local laws and regulations, especially environmental regulations, the American Reinvestment and Recovery act, or in interpretation of such, |
| ·   |   releases of pollutants into the environment exceeding our permitted limits,                                                                                               |

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| ·   |   material increases in equipment, maintenance, operating or labor costs not presently anticipated by us, |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   |   the requirement to use internally generated funds for purposes not presently anticipated,                                                                                        |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ·   |   the inability to pay or secure additional financing for planned capital expenditures,                                                                                            |
| ·   |   material changes in the cost of certain precious metals, anhydrous ammonia, natural gas, copper, steel and purchased components,                                                 |
| ·   |   changes in competition,                                                                                                                                                          |
| ·   |   the loss of any significant customer,                                                                                                                                            |
| ·   |   changes in operating strategy or development plans,                                                                                                                              |
| ·   |   inability to fund the working capital and expansion of our businesses,                                                                                                           |
| ·   |   changes in the production efficiency of our facilities,                                                                                                                          |
| ·   |   adverse results in our contingencies including pending litigation,                                                                                                               |
| ·   |   changes in production rates at the Pryor Facility,                                                                                                                               |
| ·   |   inability to obtain necessary raw materials and purchased components,                                                                                                            |
| ·   |   material changes in accounting estimates,                                                                                                                                   |
| ·   |   significant problems with our production equipment,                                                                                                                              |
| ·   |   fire or natural disasters,                                                                                                                                                       |
| ·   |   inability to obtain or retain our insurance coverage,                                                                                                                            |
| ·   |   inability of the administrative agent to syndicate the additional $15 million of the Amended Agreement,                                                                     |
| ·   |   other factors described in the MD&A contained in this report, and                                                                                                            |
| ·   |   other factors described in “Risk Factors” of our 2010 Form 10-K and “Special Note Regarding Forward-Looking Statements” contained in our 2010 Form 10-K. |

Item 1. Legal Proceedings

Item 1A. Risk Factors

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 3. Defaults upon Senior Securities

Item 4.

Item 5. Other Information

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Item 6. Exhibits

| (a) | Exhibits  The Company has included the following exhibits in this report: |
|-----|-------------------------------------------------------------------------------------|

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 4.1    | Amended and Restated Term Loan Agreement, dated as of March 29, 2011, among LSB Industries, Inc., ThermaClime, L.L.C. and certain subsidiaries of ThermaClime, L.L.C., Cherokee Nitrogen Holdings, Inc., the Lenders signatory thereto, Banc of America Leasing & Capital, LLC as the Administrative and Collateral Agent, and Bank of Utah as Payment Agent, which the Company hereby incorporates by reference from Exhibit 4.1 to the Company’s Form 8-K, filed April 4, 2011.                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.2    | Joinder and Third Amendment, dated as of March 29, 2011, by and among LSB Industries, Inc., Consolidated Industries Corp., ThermaClime, L.L.C., each of the subsidiaries of ThermaClime identified on the signature pages thereof, the lenders identified on the signature pages thereof, Wells Fargo Capital Finance, Inc., as the arranger and administrative agent for the lenders.                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 4.3    | Amendment Number One to the Amended and Restated Term Loan Agreement, dated as of April 21, 2011,  among LSB Industries, Inc., ThermaClime, L.L.C. and certain subsidiaries of ThermaClime, L.L.C., Cherokee Nitrogen Holdings, Inc., the Required Lenders signatory thereto, Banc of America Leasing & Capital, LLC as the Administrative and Collateral Agent, and Bank of Utah as Payment Agent, which the Company hereby incorporates by reference from Exhibit 4.1 to the Company’s Form 8-K, filed April 4, 2011. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.1   | Certification of Jack E. Golsen, Chief Executive Officer, pursuant to Sarbanes-Oxley Act of 2002, Section 302.                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| 31.2   | Certification of Tony M. Shelby, Chief Financial Officer, pursuant to Sarbanes-Oxley Act of 2002, Section 302.                                                                                                                                                                                                                                                                                                                                                                                                                              |

|   |                                                                                                                     |
|--------|--------------------------------------------------------------------------------------------------------------------------|
| 32.1   | Certification of Jack E. Golsen, Chief Executive Officer, furnished pursuant to Sarbanes-Oxley Act of 2002, Section 906. |
|   |                                                                                                                     |
| 32.2   | Certification of Tony M. Shelby, Chief Financial Officer, furnished pursuant to Sarbanes-Oxley Act of 2002, Section 906. |

|   | LSB INDUSTRIES, INC. |
|--------|----------------------|

|   | By: /s/ Tony M. Shelby                                                                                     |   |
|--------|------------------------------------------------------------------------------------------------------------|--------|
|   | Tony M. ShelbyExecutive Vice President of Finance and Chief Financial Officer(Principal Financial Officer) |

|   | By: /s/ Harold L. Rieker, Jr.                                        |   |
|--------|----------------------------------------------------------------------|--------|
|   | Harold L. Rieker, Jr.Vice President and Principal Accounting Officer |

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