CARBO Ceramics cuts dividend by 70%

CARBO Ceramics will lower its quarterly dividend from $0.33 to $0.10 per share.

The dividend cut can be seen as a shocker to the market, since CARBO had been increasing it's dividend for 14 straight years prior to today's dividend cut.

Gary Kolstad, president and CEO of CARBO, said, "The dividend decrease is part of the company's overall cost-reduction and cash preservation initiative.  Given the severe market deterioration our industry has experienced in recent months, we believe it's important that CARBO preserve cash and maintain strong levels of financial flexibility. We are taking proactive steps to decrease expenses company-wide by reducing our workforce, slowing or idling production at certain of our manufacturing facilities and, as previously announced, mothballing our McIntyre plant.  We are also reducing our capital expenditures for 2015, with a focus on new technology platforms."

Mr. Kolstad concluded, "Our board recognizes the importance of the dividend to our shareholders and will continue to evaluate the dividend amount as industry conditions warrant."

Source: CARBO Ceramics

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