MRC Global 4Q sales up 12.5%
MRC Global Inc. said its sales were $1.5 billion for the fourth quarter of 2014, 12.5% higher than the fourth quarter of 2013.
The distributor of pipe, valves and fittings and related products and services to the energy industry had net income for the quarter of $31.2 million, or 30 cents per diluted share, compared to $23.3 million, or 23 cents, in the same quarter last year.
Looking forward, MRC expects capital spending in North America to be down more than 35%, impacting MRC's upstream business most directly. "The lower spending will also affect our midstream business somewhat, but not nearly as much as the upstream, while we believe the downstream business will be impacted more modestly," said Andrew R. Lane, MRC Global's chairman, president and chief executive officer
"Given the macro global energy outlook, we expect 2015 to be a challenging year for our company. However, we feel like we have positioned the company to weather this cycle and be in an even stronger position when we emerge. In particular, the company's credit facilities contain no financial maintenance covenants and have no significant near-term maturities."
U.S. sales were up 14.5% to $1.1 billion from the same quarter in 2013 due to organic growth. The increase was across each product line due to growth in customer capital spending, an increase in rig and well count as well as market share gains.
Canadian sales were $155.0 million, down 18.1% from the same quarter in 2013. The decline was primarily attributable to the sale of the progressive cavity pump (PCP) distribution and servicing business, which reduced sales by $24.1 million and the impact of the decline of the Canadian dollar relative to the U.S. dollar which amounted to $12.7 million.
International sales were $198.4 million, an increase of 38.7% from the same period in 2013. The increase was due primarily to sales from acquired businesses of $84.7 million for the fourth quarter of 2014. Organically, sales declined $29.3 million from the fourth quarter a year ago.
For the full year, sales were $5.9 billion, a 13.4% increase from 2013. Net income of $144.1 million, $1.40 per share, compared to income of $152 million, or $1.50, the previous year.
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