Ceramic Industry News

CARBO Announces 32% Sequential Sales Increase for 3rd Qtr (posted 11/9/09)

November 9, 2009
/ Print / Reprints /
ShareMore
/ Text Size+

CARBO Ceramics Inc. recently reported net income of $14.4 million, or $0.62 per diluted share, on revenues of $91.8 million for the quarter ended September 30, 2009. The company previously reported that it had sold its fracture and reservoir diagnostics business. Because of the transaction, which closed on October 10, 2008, the 2008 operating results of this business have been accounted for as discontinued operations. Continuing operations include the company's ceramic proppant, software, consulting services and geotechnical monitoring businesses.

“We are pleased with our third quarter results,” said Gary Kolstad, president and CEO. “Looking forward, we remain cautious about the demand in North America, where depressed and volatile industry conditions still exist. In the near term, pricing remains competitive. Despite this climate, we continue to experience growing acceptance of our products by E&P companies that understand the benefits associated with Economic Conductivity™ resulting from the use of our high-quality ceramic proppants, such as CARBOHYDROPROP®.”

Revenues for the third quarter of 2009 decreased 11% compared to the third quarter of 2008 and increased 32% sequentially. Worldwide proppant sales volume totaled 296 million pounds for the third quarter of 2009, representing a year-over-year decrease of 3% and a sequential increase of 37%. Proppant sales volume for the third quarter grew in the U.S. both year-over-year and sequentially.

Operating profit for the third quarter of 2009 increased $0.9 million compared to the third quarter of 2008. Revenue decreases resulting from decreases in volume and average selling price experienced during the third quarter of 2009 were offset by decreases in cost of sales, which was positively affected by a favorable product mix, lower freight costs and lower natural gas prices. Selling, general, administrative and other operating expenses for the third quarter of 2009 decreased $0.8 million on a year-over-year basis.

“While we experienced a positive trend this quarter in the North American rig count, which achieved 13% sequential growth, opinions vary as to whether this is the start of a recovery or simply a short-term correction,” said Kolstad. “From our perspective, we believe that a sustainable recovery in the oil and gas industry is inevitable; however, the exact timing of the recovery is difficult to pinpoint.

“We remain committed to expanding our client base and product and service offerings. The acquisition of the Falcon assets in early October is an example of our commitment to invest our cash reserves in high-growth, cash-generating businesses. Newly incorporated as Falcon Technologies and Services, Inc., its existing management team will build on its leading technology position and already successful strategy by taking advantage of CARBO’s well-established geographic footprint, a common client base and our ability to fund product innovation. We expect that the transaction will be accretive to our financial results in 2010.”

Visit www.carboceramics.com for additional details.

Links

Did you enjoy this article? Click here to subscribe to Ceramic Industry Magazine.

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

April 2014 Issue Highlights

Our April 2014 issue is now available!

Podcasts

Sapphire: An Extreme Performer

Ian Doggett of Goodfellow and CI Editor Susan Sutton discuss the benefits and opportunities provided by industrial sapphire.

More Podcasts

Ceramic Industry Magazine

CI July 2014

2014 July

Our annual Data Book & Buyers' Guide is your best resource for suppliers of materials and equipment for the ceramic, glass, brick and related industries. Check it out!

Table Of Contents Subscribe

THE CERAMIC INDUSTRY STORE

M:\General Shared\__AEC Store Katie Z\AEC Store\Images\Ceramics Industry\handbook of advanced ceramics.gif
Handbook of Advanced Ceramics Machining

Ceramics, with their unique properties and diverse applications, hold the potential to revolutionize many industries, including automotive and semiconductors.

More Products

Clear Seas Research

Clear Seas ResearchWith access to over one million professionals and more than 60 industry-specific publications,Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

Directories

CI Data Book July 2012

Ceramic Industry's Directories including Components, Equipment Digest, Services, Data Book & Buyers Guide, Materials Handbook and much more!

STAY CONNECTED

facebook_40px twitter_40px  youtube_40pxlinkedin_40google+ icon 40px