U.S. Silica (SLCA) To Reduce Annualized SG&A Costs By $20M
Zacks Investment Research | Mar 25, 2020 10:02PM ET
U.S. Silica Holdings, Inc. (NYSE:SLCA) has announced annualized selling, general and administrative (SG&A) cost reductions worth roughly $20 million. The company’s latest move is in response to the decrease in oil prices as well as an expected decline in drilling and completion activities in North American shale in the upcoming quarters.
U.S. Silica also intends to idle its Sparta, WI-based facility, which will make 1.5 million tons of Oil & Gas proppant capacity offline. It will continue to monitor the industry proppant demand and align costs with market conditions.
The company stated that the difficult decisions stemmed from the headwinds created by the recent OPEC actions. Moreover, consistent earnings and cash flows of its Industrial & Specialty Products unit along with the strategic actions will enable U.S. Silica to remain the industry leader and continue providing its customers with outstanding products and services.
Shares of U.S. Silica have plunged 91.3% in the past year compared with the Zacks Investment Research
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