PITTSBURGH WSP Holdings Ltd.s losses widened in the third quarter as lower export sales and decreased average selling prices walloped the firms bottom line.
The Wuxi, China-based energy tubulars producer posted a third-quarter net loss of nearly $22.75 million, a 37.3-percent jump from a $16.56-million loss in the same period a year earlier, on revenue that fell 25.2 percent to $141.28 million. For the nine months ended Sept. 30, WSPs net loss increased 11.1 percent to $55.05 million from $49.55 million a year earlier as revenue slid 15 percent to $429.95 million.
We will continue our marketing efforts to tap into new international markets amid the current global economic uncertainties, WSP chairman and chief executive officer Longhua Piao said in a statement.
WSP is looking to find new customers in South America, the Middle East, Central Asia and Africa, while in China it wants to boost sales of higher-end products to customers in the Xinjiang Autonomous region, Sichuan province and Shaanxi province.
WSP has suffered heavy losses following the imposition of U.S. duties on imports of energy tubulars from China. The company had said that it could restore its presence in the United States by selling product made in Thailand and finished in Houston (amm.com, June 15, 2011
), but in October WSP announced plans to sell its U.S. OCTG business for $43 million to Southern Tube LLC, an affiliate of Tokyos Nippon Steel & Sumitomo Metal Corp (amm.com, Oct. 2
WSP said in its earnings report that one of its subsidiaries appeared unlikely to meet financial covenants at the end of 2012, and two other subsidiaries also were in breach of project loan agreements.