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:
Production Enhancement
- Our Production Enhancement businesses increase E&P
Operators' Production and EUR...by providing industry leading
technology to Design, Build, and Optimize the
Frac™
Environmental Services
- Our Environmental business protects E&P Operators' assets,
minimizes environmental risk, and lowers lease operating expenses
(LOE)
Forward-Looking Statements
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.