HOUSTON, March 10, 2015 /PRNewswire/ -- CARBO Ceramics Inc. (NYSE: CRR) today announced that it has decided to mothball its proppant manufacturing facility in McIntyre, Georgia.
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CEO Gary Kolstad commented, "As was mentioned in January on our fourth quarter conference call, CARBO began slowing production earlier this year to assist in managing cash and inventory levels. The Company's actions were in direct response to a depressed commodity price for oil and the resulting negative impact on industry activity levels, which is having a negative impact on demand for ceramic proppant. Unfortunately, we have not seen improvement in demand for ceramic proppant, nor do we anticipate any change in the near term. With this outlook in mind, we have decided to mothball our facility in McIntyre, Georgia until such time as market conditions warrant bringing it back online. In addition, we continue to manage the collective output of our other proppant facilities, which includes slowing down and idling production as deemed necessary. These decisions are difficult due to the impact on our employees and their families, to whom we owe much of our success over the last 36 years."
CARBO is an oilfield services technology company providing industry-leading products and services for:
- Our Production Enhancement businesses increase E&P Operators' Production and EUR...by providing industry leading technology to Design, Build, and Optimize the Frac™
- Our Environmental business protects E&P Operators' assets, minimizes environmental risk, and lowers lease operating expenses (LOE)
The statements in this news release that are not historical statements, including statements regarding our future financial and operating performance, are forward-looking statements within the meaning of the federal securities laws, including the Private Securities Litigation Reform Act of 1995. All forward-looking statements are based on management's current expectations and estimates, which involve risks and uncertainties that could cause actual results to differ materially from those expressed in forward-looking statements. Among these factors are changes in overall economic conditions, changes in the cost of raw materials and natural gas used in manufacturing our products, our ability to manage distribution costs effectively, changes in demand and prices charged for our products, changes in the demand for, or price of, oil and natural gas, risks of increased competition, technological, manufacturing, distribution and product development risks, loss of key customers, changes in government regulations, foreign and domestic political and legislative risks, the risks of war and international and domestic terrorism, risks associated with foreign operations and foreign currency exchange rates and controls, weather-related risks and other risks and uncertainties described in our publicly available filings with the Securities and Exchange Commission. We assume no obligation to update forward-looking statements, except as required by law.
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SOURCE CARBO Ceramics Inc.