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[May 2004]
Record Quarterly Earnings for CARBO Ceramics
The major ceramic proppant manufacturer CARBO Ceramics Inc (Irving, TX, USA) announced net income of US$9.6 million on revenues of US$50 million for the first quarter of 2004. This is the highest quarterly earnings in the history of the company and represents an increase of 68% over the net income of US$5.7 million in the first quarter of 2003.
In Q1 2004, sales product volume was a record 172 million pounds, an increase of 31% over Q1 2003. Sales volume in North America increased by 21% while sales volume in overseas markets increased by 91%. While there was no change in the price of any of the company's ceramic proppants - used in the hydraulic fracturing of natural gas and oil wells - the average selling price for these products declined approximately one percent in the first quarter compared to the same period a year ago due to a shift in the mix of products sold. Revenues for Q1 2004 included US$3.6 million from Pinnacle Technologies Inc compared to US$2.8 million in Q1 2003.
Expansion of the company's China manufacturing facility remains on schedule for completion in the second quarter and this is expected to add 45 million pounds of product to the annual manufacturing capacity. CARBO is also finalising engineering and initiating the procurement of equipment for its new plant in Wilkinson County, GA, USA. This it expects to complete by the end of 2005, at which time it is expected to add a further 250 million pounds of product to annual manufacturing capacity.
ENDS