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[August 2003]
Good First Half-Year and Expansion Plans Announced by CARBO Ceramics
CARBO Ceramics Inc (Irving, TX, USA), the manufacturer of ceramic proppants for use in the hydraulic fracturing of natural gas and oil wells, has announced second quarter 2003 net income of US$6.4 million on revenues of US$39.4 million. For the half-year to 30 June 2003, net income was US$12.2 million on revenues of US$78 million. Results for the quarter (and year to date) include a US$717,000 write-off of assets which were removed from the company's McIntyre, Georgia manufacturing facility during the expansion of that facility earlier this year.
Revenues in Q2 increased 33% over the same period in 2002, due largely to a 28% increase in proppant and industrial product sales volume as against Q2 2002. Net income increased 30% over Q2 2002 and was 13% above Q1 2003.
Proppant and industrial sales volume for the quarter totalled 132 million pounds, an increase of 28% over Q2 2002 and 1% higher than Q1 2003. Compared to sales volume in Q1 2003, sales outside of the North America increased by 83% while sales in Canada declined by 69%; domestic sales remained unchanged.
Sales outside North America were led by shipments to Russia and PR China made possible by the company's improved position following start-up of its facility in Luoyang in China. Sales in Canada were adversely impacted by an extended seasonal spring break-up period caused by unusual weather conditions in the region. Gross profit margins for the quarter were 43% up as the impact of higher natural gas costs in the company's domestic production facilities was more than offset by excellent production results at the company's manufacturing facility in China, improved margins from Pinnacle Technologies and an increase in the sale of higher-margin ceramic proppants.
ENDS