MRC Global 4Q sales fall 36 percent
MRC Global reported sales of $967 million for the fourth quarter of 2015, 36% lower than the fourth quarter of 2014 and 10% lower than the third quarter of 2015.
As compared to last year, reduced customer activity across all segments and sectors drove the decline.
Net loss for the quarter was $398.8 million, or $3.92 per diluted share, compared to net income of $31.2 million, or 30 cents, for the fourth quarter of 2014.
"We remain focused on our long-term strategy of taking care of customers and growing market share as well as managing this cycle by reducing costs and continuing to strengthen our balance sheet. While we expect 2016 to also be challenging, MRC Global is positioned to perform well through the cycle," said Andrew R. Lane, MRC Global's chairman, president and chief executive officer.
U.S. sales in the quarter were $778.2 million, down 32.8% from the same quarter in 2014. The decrease reflected a 47% decrease in the upstream sector, a 31% decrease in the midstream sector and 7% in the downstream sector. The decreases were attributable to reduced customer spending.
Canadian sales in the quarter were $66.2 million, down 57.3% from the same quarter in 2014. The decrease in Canadian sales reflected a $77.0 million decrease in the upstream business due to a significant decline in customer spending. Sales were also negatively impacted by $11 million as a result of a stronger U.S. dollar.
International sales in the quarter were $122.7 million, down 38.2% from the same period in 2014. The decrease was due to lower project activity and deferral of maintenance, repair and operations expenditures particularly in Norway, Australia, Singapore and the U.K. Sales were also negatively impacted by $19 million due to the strengthening of the U.S. dollar.
INDUSTRIAL SUPPLY MAGAZINE
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