Company provides outlook for first quarter 2009
THE WOODLANDS, Texas, March 24 /PRNewswire-FirstCall/ -- Newpark Resources, Inc. (NYSE: NR) will present at the Sidoti & Company New York Emerging Growth Institutional Investor Forum on Wednesday, March 25, 2009, during which Newpark President and CEO Paul Howes will provide an overview of the Company's progress on its strategic initiatives and will also give preliminary estimates of expected results for the first quarter of 2009. The presentation slides will be available on the Company's website and filed as an exhibit to a Current Report on Form 8-K to be filed by the Company on March 24, 2009.
With regard to the first quarter of 2009, based on management's preliminary review of quarter to date operational results, Newpark expects to report revenues for the first quarter of 2009 between $120 million and $130 million and a net loss in the range of $0.08 to $0.12 per diluted share. This estimate excludes the impact, if any, from an evaluation of the carrying value of the Company's goodwill and other intangible assets and any possible non-cash impairment charges.
Paul Howes, President and Chief Executive Officer of Newpark, stated, 'The first three months of 2009 are proving to be an extremely difficult market for oil service companies in North America. The U.S. rig count for the week ended March 20, 2009 was 1,085, down 47% from its peak of 2,031 in September 2008. This significant decline in rig activity combined with aggressive bidding from our competitors on new and existing work is causing a correlating drop in revenue and compression of margins.
'As previously announced, we began cost cutting initiatives during the fourth quarter of 2008, and we anticipate annual savings of approximately $40 million from actions taken to date. These cost cutting initiatives consist of significant headcount reductions, a salary and wage freeze, reduced discretionary spending as well as reductions in capital expenditures. Efforts to further drive down costs throughout 2009 will focus on transportation expenses in addition to procurement of barite and other materials.
'On a more positive note, our international markets are more robust and more geared to oil as compared to natural gas activity here in North America. We expect to see continued opportunities to grow our international business in the Mediterranean, Middle East and Brazil.
