KLX (KLXI) Stock Plummeted on Impairment Charge
NEW YORK (TheStreet) -- KLX (KLXI) - Get Report stock closed lower by 17.67% to $32.11 on Thursday, after the company announced that it would take an after-tax asset impairment charge of roughly $435 million related to its energy services group.
During the 2015 third quarter, the company completed an interim asset impairment test during a continued decline in the oil and gas industry, which has included a 60% fall in oil prices and a 60% decrease in the number of onshore drilling rigs, according to a statement by the company.
KLX's oil and gas customers have made "significant cutbacks" in capital expenditures, leading to lower volume and pricing for the company's oil field services.
"As a result, during the third quarter of 2015, the company determined that the carrying value of ESG's assets has been impaired," CEO Amin Khoury said in a statement. "KLX therefore expects to record a non-cash, after-tax impairment charge of approximately $435 million."
Based in Wellington, FL, KLX is a distributor and service provider of aerospace fasteners and consumables.
data by
Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.