James D. Cole, Chief Executive Officer of Newpark Resources said, "While each of the facilities in the path of the hurricanes sustained some level of damage, substantially all of our facilities, other than Venice and Cameron, are operational. We believe that we are on target to meet third quarter estimates and expect that activity in the Texas Gulf Coast market, which was less directly affected, should return to pre-storm levels in the next 10 days."
Recovery of Newpark's operations along the Louisiana portion of the market will depend upon individual customers' situations driven by their personnel, logistics and infrastructure damage. The company anticipates that over the next sixty days, business activity in the Louisiana market will return to more normal levels and that it should meet or exceed analysts' earnings estimates for the fourth quarter. Newpark's barite grinding plants, which support its drilling fluids operations, were minimally impacted and are in service to meet the needs of its customers.
Cole concluded, "We are working hard to meet the needs of our customers while we continue to help all of our employees who have been impacted by Hurricanes Katrina and Rita. We appreciate the support we have received and will continue to deliver positive results."
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