 |
 |
||||||
[April 2002]
CARBO Ceramics Announces First Quarter Earnings
The ceramic proppant manufacturer CARBO Ceramics Inc (Irving, TX, USA) has announced first quarter 2002 net income of US$5.029 million on revenues of US$29.311 million. This compares to US$6.18 million and US$34.174 million respectively for the first quarter 2001. Current performance took place in an environment where the USA's natural gas rig count declined by 25% compared to the same period last year.For the first quarter of 2002, the company's domestic sales volume declined 22% versus the previous year due to a slowdown in natural gas drilling and fracturing activity. International sales for the quarter declined 6% compared to the same period a year earlier. In the international markets, a decline in overseas shipments was partially offset by record sales volumes in Canada. Sales in Canada during the first quarter increased by 42% versus the previous year despite a 21% decline in the number of rigs actively drilling in the region. The improvement in Canada was due to an increase in market share versus alternative proppants and an increase in the amount of proppant pumped per well.
Commenting on these results, Mark Pearson - CARBO's President and CEO - stated: "We are pleased with our first quarter results despite the decline from last year's first quarter. While we are operating in a more difficult environment in the early part of this year, demand has been strong in several key markets where we have been able to demonstrate to operators the value created through the use of our high conductivity proppants.
"We are continuing to move forward with the construction of our new manufacturing facility in China and we are beginning a project to optimize the throughput of our manufacturing facility in McIntyre, Georgia. We expect this project to cost $17 million and add 75 million pounds of annual capacity to this facility."
The company also announced that its Board of Directors declared a dividend of US$0.09 per share payable on 15 May 2002 to shareholders of record on 30 April 2002.
ENDS