MRC Global income rises
Pipe, valves and fittings distributor MRC Global said its profits for the second quarter of 2013 increased 13%.
Net income of $43.9 million, or 43 cents per diluted share, compared to $38.8 million, or 39 cents, in the same period last year.
Sales in the quarter of $1.268 billion decreased 11% from the second quarter of 2012, in part because of a planned reduction in the company's lower margin oil country tubular goods (OCTG) business. OCTG represented 9% of total sales in the second quarter of 2013 compared to 14% of total sales in the second quarter of 2012. Continued weakness in the company's line pipe product group within the midstream and upstream sectors also impacted sales. Line pipe sales were $231.1 million for the second quarter of 2013 as compared to $294.4 million for the same period in 2012.
Andrew R. Lane, MRC's chairman, president and chief executive officer, stated, "While our revenues reflect reduced upstream and midstream customer spending, primarily in the U.S., our efforts to improve operating margins and our fourth quarter 2012 debt refinancing actions to lower our interest costs are resulting in net income and earnings per share improvements."
U.S. sales in the quarter were $975.2 million and reflected an expected decrease in OCTG revenues of $83.0 million from the second quarter of 2012. Canadian sales were $153.6 million, down 4% from the same quarter in 2012 due primarily to a longer spring break-up in 2013. International sales were $139.0 million and decreased 8% over the same period in 2012 reflecting weaker demand, particularly in parts of Australia that have experienced reduced customer spending in the mining and oil and gas sectors.
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