Arabian American Announces Two-Year Contract Extension with an Existing Fortune 500 Customer; Contract Valued at $11 Million
SUGAR LAND, Texas, Jan. 26, 2012 /PRNewswire/ — Arabian American Development Co. (Nasdaq: ARSD) today announced that it has signed a two year contract extension with an existing Fortune 500 customer. The extension took effect January 1, 2012, and is expected to generate approximately $5.5 million annually. In addition, the pricing structure has been changed to a formula basis to create additional margin stability.
Nick Carter, President and Chief Executive Officer, commented, “This contract extension will help provide additional visibility in contracted volume going forward and support our expectation of increased capacity utilization for 2012 that will further improve operational efficiencies. The contract has also shifted to a formula basis which is consistent with our strategy for larger customers.”
About Arabian American Development Company (ARSD)
ARSD owns and operates a petrochemical facility located in southeast Texas just north of Beaumont which specializes in high purity petrochemical solvents and other solvent type manufacturing. The Company is also the original developer and now a 37% owner of AMAK, a Saudi Arabian joint stock mining company.
Statements in this release that are not historical facts are forward looking statements as defined in the Private Securities Litigation Reform Act of 1995. Forward looking statements are based upon management’s belief as well as assumptions made by and information currently available to management. Because such statements are based upon expectations as to future economic performance and are not statements of fact, actual results may differ from those projected. These risks, as well as others, are discussed in greater detail in Arabian American’s filings with the Securities and Exchange Commission, including Arabian American’s Annual Report on Form 10-K for the year ended December 31, 2010, and the Company’s subsequent Quarterly Reports on Form 10-Q.
Company Contact: Nick Carter, President and Chief Executive Officer
Investor Contact: Cameron Donahue
SOURCE Arabian American Development Co.