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[July 2002]
Second Quarter Results from 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 - announced on 19 July 2002 net income of US$5 million on revenues of US$29.7 million for the second quarter of 2002. For the first six months of 2002, net income was US$10 million on revenues of US$59 million.Revenues for Q2 2002 decreased 16% from the same period in 2001 due to a decline in sales volume primarily attributable to a reduction in North American natural gas drilling activity. Sales volume for the quarter totalled 104 million pounds (US), a decline of 20% versus last year's second quarter.
Mark Pearson, President and CEO, said: "Despite operating in a difficult market environment, this was an exciting quarter for CARBO Ceramics. On May 31, we completed our acquisition of Pinnacle Technologies and we are very enthusiastic about the potential for growth in this business. Overall, our results for the second quarter reflect the continuing weakness in drilling activity experienced throughout most of the quarter.
"Given the low level of activity, we are encouraged by the relative strength of our business. We believe this reflects the success of our expanding marketing efforts. We expect an improvement in drilling activity during the second half of the year which should allow us to operate our manufacturing facilities more efficiently and improve operating margins."
ENDS