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[February 2006]
Revenues Increase for CARBO Ceramics
Revenues for CARBO Ceramics Inc (Irving, TX, USA) for the year ended 31 December 2005 increased by 13% compared to 2004 . The increase was the result of a 6% increase in ceramic proppant sales volume, a 6% increase in the average selling price of ceramic proppant and a 23% increase in revenues from Pinnacle Technologies.
The higher average selling price for ceramic proppant was due primarily to the impact of a price increase and energy surcharges that went into effect in 2005. Revenues for the full year 2005 included US$26.9 million for Pinnacle Technologies compared to US$22 million for 2004. The increase in Pinnacle Technologies' revenues was due primarily to the increase in fracture mapping activity in the US market.
Operating profit margin was 28% for 2005 as compared to 29% in 2004. Margins in the ceramic proppant business declined slightly due to an increase in manufacturing costs attributable to higher natural gas costs incurred in the second half of 2005.
The company's new manufacturing facility in Wilkinson County, GA, USA (known as McIntyre II) started up as scheduled in January 2006 and was completed slightly below the planned expenditure of US$62 million. The McIntyre II plant is expected to produce between 150 and 200 million pounds of proppant in 2006. It is expected eventually to have a manufacturing capacity of 250 million pounds per year and will increase the company's existing production capacity by 33% when fully operational.
www.carboceramics.com
ENDS