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CARBO Announces Q1 Earnings

CARBO’s ceramic proppant volumes were up 7 % year over year, despite the average US rrig count being down 12 % over the same period. On a sequential basis, ceramic proppant volumes and respective pricing were relatively steady, even as additional pricing pressures emerged and E&P operators continued to focus on reducing well costs. Separately, pricing pressures by lower-quality Chinese ceramic imports continued to cause disruptions in the market. However, imports during Q1 of 2013 remained at lower levels than the peak witnessed in Q4 of 2011. Revenues for Q1 of 2013 decreased 10 %, or USD 15,5 million, compared to Q1 of 2012. The decrease is mainly attributed to a decrease in the average proppant selling price, partially offset by an increase in proppant sales volume. The decline in the average proppant selling price is due to price decreases and an increase in the sale of sand-based products.  North American (defined as Canada and the USA) proppant sales volumes increased 13 %t while international proppant sales volumes decreased 3 %, compared to the same period last year. Operating profit for Q1 of 2013 decreased 46 %, or USD 21,4 million, compared to Q1 of 2012. The decrease in operating profit was primarily the result of a decrease in average selling price, a change in the product sales mix and higher distribution costs, partially offset by an increase in proppant sales volume. In addition, the spending on the company´s new proppant technology product was accelerated, which reduced the first quarter’s earnings per share by approximately USD 0,06. Net income for the Q1 of 2013 decreased 42 %, or USD 12,7 million, compared to the first quarter of 2012. (6/2013)


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