CARBO Ceramics Inc. has reported net income of $20.2 million, or $0.87 per diluted share, on revenues of $118.5 million for the quarter ended September 30. Revenues for the third quarter of 2010 increased 29%, or $26.7 million, when compared to the third quarter of 2009.
Operating profit for the third quarter of 2010 increased 45%, or $9.7 million, compared to the previous year’s third quarter. This increase was due to higher sales volume and an increase in the average proppant selling price, partially offset by an increase in freight costs, the company reports. Selling, general, administrative and other operating expenses for the third quarter of 2010 increased $2.5 million on a year-over-year basis, largely due to the inclusion of the Falcon TechnologiesTM business acquired in October 2009 and higher research and development spending.
“We are pleased with the record results for the third quarter,” said Gary Kolstad, president and CEO. “Our business continues to benefit from robust oilfield activity levels across the major shale plays in North America. Demand for our products remains strong as clients continue to benefit from the high conductivity achieved by our ceramic proppant both in oil and gas reservoirs. CARBO’s plants operated at high utilization levels during the quarter, which assisted in achieving a quarterly sales volume of 332 million pounds. The startup of the third 250 million pound production line at our Toomsboro, Ga., facility remains on schedule for November of this year. We are eager to bring on this additional capacity as it will alleviate some of the capacity constraints that exist today. We continued the geographical expansion of our Falcon Technologies business, which commenced operations in the Marcellus shale during the third quarter.”
For additional details, visit www.carboceramics.com