Vallourec remains cautious for the second half
July 29, 2010
Vallourec published Wednesday earnings growth under its second quarter due to the recovery of all of its markets. In a statement released after the close of the Paris Bourse, Vallourec reported a net profit between March and June to 125.9 million euros (+107% over the same period a year earlier) for billings of $ 1.12 billion (+28%). Its EBITDA rose 78% to 264.4 million. Its margin EBITDA / turnover was well established at 23.6% against 22% in the second quarter 2009 and 16.9% in first quarter 2010. It's better than expected, analysts polled by Reuters expected a gross operating income of about $ 225 million. And sales of around 1.09 billion.
In the first half, net profit group share stood at 186.7 million against 311.1 million a year earlier.The consolidated turnover amounted to 1, 99 billion, down 17% from the previous year (2.39 billion Premmia half of 2009), due to price / mix effect negative (- 19.7%). Volumes fell 3.6%.
A second part of the year more difficult
The producer of seamless steel tubes, which provides the oil and gas, electric power, petrochemical and automotive industries, however, said in a statement it expected the second half margin Gross operating "slightly less" than that of 20.6% in the first half. "Rising commodity prices weigh on production costs in the coming quarters, while sales prices will increase gradually. Price effects and mix effects due to weak market power will have an impact on margins, "he specifically explained.
Brazil also will record additional operating costs related to start production of its new plant in the fourth quarter.
"After the rebound in the second quarter 2010, growth in turnover is expected to continue in the second half of 2010, but at a slower pace," said Vallourec.
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