FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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(Print or Type Responses)

1. Name and Address of Reporting Person * MCCARTHY KENT C   2. Issuer Name and Ticker or Trading Symbol LSB INDUSTRIES INC [LXU] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) _____ Director __X__ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 5410 WEST 61ST PLACE, SUITE 100 3. Date of Earliest Transaction (Month/Day/Year) 01/23/2007 (Street) MISSION, KS 66205 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock 01/25/2007   G   10,000 D $ 0 0 D (1)   Common Stock 02/13/2007   G   10,000 D $ 0 0 D (1)   Common Stock 02/15/2007   G   10,000 D $ 0 0 D (1)   Common Stock 03/13/2007   J   93,240 A (2) 224,240 D (1)   Common Stock 03/13/2007   J   671,328 A (3) 1,725,028 I Jayhawk Institutional Partners, L.P. (4) Common Stock 03/13/2007   J   570,762 A (5) 570,762 I Jayhawk Investments, L.P. (4)

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Underlying Securities (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Class C Preferred Series 2	(6)	02/23/2007		G			11,200 (6)	(6)	(6)	Common Stock	48,484.8 (6)	$ 0	0	D (1)
Class C Preferred Series 2	(6)	03/13/2007		J			12,600 (2) (6)	(6)	(6)	Common Stock	54,545.4 (6)	$ 0	0	D (1)
Class C Preferred Series 2	(6)	03/13/2007		J			90,720 (3) (6)	(6)	(6)	Common Stock	392,726.9 (6)	$ 0	80,670	I	By Jayhawk Institutional Partners, L.P. (4)
Class C Preferred Series 2	(6)	03/13/2007		J			77,130 (5) (6)	(6)	(6)	Common Stock	33,895.8 (6)	$ 0	74,342	I	By Jayhawk Investments, L.P. (4)

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
MCCARTHY KENT C 5410 WEST 61ST PLACE SUITE 100 MISSION, KS 66205		X

Signatures

Kent C. McCarthy		03/26/2007
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	The shares listed are owned by the Kent C. McCarthy Revocable Trust (the "Trust").
(2)	The reporting person, through the Trust, disposed of 12,600 shares of Class C Preferred Series 2 Stock in exchange for 93,240 shares of Common Stock in an issuer tender offer.
(3)	The reporting person, through Jayhawk Institutional, disposed of 90,720 shares of Class C Preferred Series 2 Stock in exchange for 671,328 shares of Common Stock in an issuer tender offer.
(4)	As of the reporting date, McCarthy is deemed the indirect beneficial owner of (i) 1,725,028 shares of Common Stock and 80,670 shares of Class C Preferred Series 2 Stock held by Jayhawk Institutional and (ii) 570,762 shares of Common Stock and 74,342 shares of Class C Preferred Series 2 Stock held by Jayhawk Investments. Mr. McCarthy disclaims beneficial ownership of all securities covered by this statement (except to the extent of any pecuniary interest therein) and this report shall not be deemed an admission that such reporting person is the beneficial owner of such securities for purposes of Section 16 or any other purpose.
(5)	The reporting person, through Jayhawk Investments, disposed of 77,130 shares of Class C Preferred Series 2 Stock in exchange for 570,762 shares of Common Stock in an issuer tender offer.
(6)	Each share of Class C Preferred Series 2 Stock is convertible into 4.329 shares of Common Stock at any time, and has no expiration date.
Remarks: This Form 4 is filed by Kent C. McCarthy.  Form 4s reporting the transactions reported herein were also filed by Jayhawk Institutional Partners, L.P. ("Jayhawk Institutional") and by Jayhawk Capital Management, L.L.C. ("Jayhawk Capital").  Mr. McCarthy is the manager of Jayhawk Capital, which is the general partner and manager of Jayhawk Institutional and Jayhawk Investments, L.P. ("Jayhawk Investments").

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