Release Details

THE WOODLANDS, Texas, April 28, 2011 /PRNewswire via COMTEX/ -- Newpark Resources, Inc. (NYSE: NR) today announced results for its first quarter ended March 31, 2011. Total revenues were $202.7 million for the first quarter of 2011, compared to $194.5 million for the fourth quarter of 2010 and $160.8 million for the first quarter of 2010. Net income for the first quarter of 2011 was $15.9 million, or $0.16 per diluted share, compared to net income for the fourth quarter of 2010 of $14.8 million, or $0.15 per diluted share, and net income for the first quarter of 2010 of $7.8 million, or $0.09 per diluted share.

Paul Howes, President and Chief Executive Officer of Newpark, stated, "Solid performance in our Drilling Fluids and Mats and Integrated Services businesses helped drive strong year-over-year and sequential growth in the first quarter of 2011. In North America, we posted 12% sequential growth in revenues, despite the expected decline in our Environmental Services segment. Internationally, we experienced a sequential decline from our record revenue level achieved in the fourth quarter of 2010, consistent with our expectation.

"Our recent completion of the Rheochem acquisition provides us with a footprint in the growing Asia Pacific market to support the continued expansion of our international operations," added Howes. "Meanwhile, we've continued with the roll-out of Evolution^(TM), our high performance water-based drilling fluid system, with customers now running or evaluating the system in several major North American drilling basins."

Segment Results

The Fluids Systems and Engineering segment generated revenues of $170.5 million in the first quarter of 2011 compared to $162.8 million in the fourth quarter of 2010 and $136.3 million in the first quarter of 2010. North American revenues increased 14% sequentially in the first quarter of 2011, including an $11.7 million, or 12%, improvement in the U.S. along with $4.0 million from seasonal improvements in Canada. International revenues declined 15% from the fourth quarter of 2010, driven by the timing of customer projects in Brazil and lower revenues in Italy and areas of North Africa, due in part to political and social unrest in the region. Compared to the first quarter of 2010, revenues increased 25% in both our North American and international operations. Segment operating income was $19.2 million (11.3% margin) in the first quarter of 2011 compared to $16.8 million (10.3% margin) in the fourth quarter of 2010 and $12.4 million (9.1% margin) in the first quarter of 2010.

The Mats and Integrated Services segment generated revenues of $23.1 million in the first quarter of 2011 compared to $20.6 million in the fourth quarter of 2010 and $13.6 million in the first quarter of 2010. Revenues for the segment were up 12% from the fourth quarter of 2010, driven primarily by a $2.0 million increase in composite mat sales. Compared to the first quarter of 2010, segment revenues were up 69%. Segment operating income was $11.8 million (51.1% margin) in the first quarter of 2011 compared to operating income of $10.3 million (50.2% margin) in the fourth quarter of 2010 and $2.7 million (19.9% margin) in the first quarter of 2010.

The Environmental Services segment generated revenues of $9.1 million in the first quarter of 2011 compared to $11.1 million in the fourth quarter of 2010 and $10.9 million in the first quarter of 2010. The sequential decline in revenues is primarily attributable to lower waste disposals associated with the Deepwater Horizon oil spill. Segment operating income was $1.6 million (17.8% margin) in the first quarter of 2011 compared to operating income of $2.6 million (23.4% margin) in the fourth quarter of 2010 and $2.7 million (24.7% margin) in the first quarter of 2010.

CONFERENCE CALL

Newpark has scheduled a conference call to discuss the first quarter 2011 results, which will be broadcast live over the Internet, on Friday, April 29, 2011 at 10:00 a.m. Eastern Time / 9:00 a.m. Central Time. To participate in the call, dial 480-629-9692 and ask for the Newpark Resources conference call at least 10 minutes prior to the start time, or access it live over the Internet at www.newpark.com. For those who cannot listen to the live call, a replay will be available through May 6, 2011 and may be accessed by dialing (303) 590-3030 and using pass code 4426435#. Also, an archive of the webcast will be available shortly after the call at www.newpark.com for 90 days.

Newpark Resources, Inc. is a worldwide provider of drilling fluids, temporary worksites and access roads for oilfield and other commercial markets, and environmental waste treatment solutions. For more information, visit our website at http://www.newpark.com/.

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act that are based on management's current expectations, estimates and projections. All statements that address expectations or projections about the future, including Newpark's strategy for growth, product development, market position, expected expenditures and financial results are forward-looking statements. Some of the forward-looking statements may be identified by words like "expects," "anticipates," "plans," "intends," "projects," "indicates," and similar expressions. These statements are not guarantees of future performance and involve a number of risks, uncertainties and assumptions. Many factors, including those discussed more fully elsewhere in this release and in documents filed with the Securities and Exchange Commission by Newpark, particularly its Annual Report on Form 10-K for the year ended December 31, 2010, as well as others, could cause results to differ materially from those stated. These risk factors include, but are not limited to, our ability to successfully integrate the business acquired from Rheochem and to realize the anticipated benefits from the acquisition, the impact of restrictions on offshore drilling activity in the Gulf of Mexico, our customer concentration and cyclical nature of our industry, the availability of raw materials and skilled personnel, our market competition, the cost and continued availability of borrowed funds, our international operations, legal and regulatory matters, including environmental regulations, inherent limitations in insurance coverage, potential impairments of long-lived intangible assets, technological developments in our industry, and the impact of severe weather, particularly in the U.S. Gulf Coast. Newpark's filings with the Securities and Exchange Commission can be obtained at no charge at www.sec.gov, as well as through our website at http://www.newpark.com/.

SOURCE Newpark Resources, Inc.