Revenue Climbs over 40% for CARBO Ceramics in 2018 First Quarter
CARBO Ceramics’ revenues for the first quarter of 2018 reached $49.4 million, an increase of 42% or $14.7 million, compared to revenue of $34.7 million in the same period of 2017.
CARBO Ceramics Inc. recently reported its financial results for the first quarter of 2018. Revenues for the first quarter reached $49.4 million, an increase of 42% or $14.7 million, compared to revenue of $34.7 million in the same period of 2017. The largest contributors to this increase were frac sand, environmental products, and industrial products.
CARBO’s operating loss for the first quarter of 2018 improved to $20.2 million, compared to $30.3 million in the first quarter of 2017, primarily due to increased sales combined with a reduction in certain fixed structural costs, as well as a decrease in slowing and idling expenses. Approximately two-thirds of the $9.7 million of slowing and idling expenses is non-cash related.
“We continue to show solid progress on our transformation strategy to diversify our revenue streams and return the company to profitability,” said Gary Kolstad, CEO. “Revenue for the first quarter of 2018 increased 42% year-on-year driven by strong growth in our oilfield and industrial business sectors. We continue to expand our suite of technologies into other industries to drive future growth…
“Our oilfield technologies continue to exhibit the value they bring clients, as sales volumes increased 20% year-on-year. The technology products, including KRYPTOSPHERE®, the GUARD® family, CARBOAIR®, and CARBONRT®, continue to perform well in the market. Base ceramic sales volumes increased 12% year-on-year (adjusted for the sale of our Russia ceramic business).
“We, like others, had disruptions in rail service during the quarter, which negatively impacted the volume of frac sand we were able to move out of our Wisconsin facility. However, we still achieved a large increase in frac sand sales volume due to client demand, as well as the capacity increases we realized from the fourth quarter 2017 start-up of an additional sand operation in the Northeast. In addition to improving profitability and providing cash flow, frac sand sales drive opportunities to stay in front of our clients to discuss and promote our technologies and the ways that CARBO can add value through technology products and engineered completions…
“Momentum is building for continued increases in sales in our industrial sectors, where revenue grew over 70% year-on-year. We are gaining new clients in several key industrial sectors, including the foundry and grinding sectors. The new products we introduced late last year have been successful, and we continue to look at new markets for further market penetration. Contract manufacturing opportunities are materializing ahead of our plan, which is important for increasing plant utilization and positively impacting profitability. We are ahead of our plan in growing our contract manufacturing backlog and are in discussions with multiple parties to carry out a number of projects…
“We continue to anticipate full year 2018 revenue of approximately $250 million. Based on the visibility we have today, we believe the second quarter of 2018 will result in increased revenue and operating cash, both sequentially and year-on-year. All areas of our business are expected to improve in the second quarter of 2018.”
For more information, visit www.carboceramics.com.