NEW YORK Edgen Group Inc.
expects the first half of this year to be sluggish amid
continued soft bookings in its energy and infrastructure
segment and pricing pressure on all products, particularly in
its oil country tubular goods (OCTG) segment, according to
chairman and chief executive officer Dan
However, the distributor of
steel pipe, valves, plate and other products for the energy and
industrial markets still foresees a year of overall sales
growth on a stronger second half, OLeary said in comments
accompanying the Baton Rouge, La.-based companys
fourth-quarter and full-year 2012 earnings results.
OCTG sales of between $800
million and $900 million are expected this year, while energy
and infrastructure sales are forecast at $1.2 billion to $1.3
The company logged record sales
of $2.06 billion in 2012, up 22.9 percent from $1.68 billion in
2011. But Edgen also recorded a greater net loss of $43.4
million vs. a net loss of $4.23 million the year prior,
primarily due to a $71.7-million loss on prepayment of debt, it
OCTG sales for the year were
$929.6 million, up 21.7 percent from 2011 levels, while energy
and infrastructure sales rose 23.9 percent to $1.13 billion in
the same comparison.
The company recorded a net loss
of $44.1 million during the three months ended Dec. 31 vs. a
loss of $275,000 a year earlier, on sales that rose 9.7 percent
to $522.1 million.
The backlog for Edgens
energy and infrastructure segment stood at $248 million as of
Dec. 31, down significantly from $353 million in the same
year-ago period, "as many of our customers chose to delay
capital spending initiatives due to uncertainty in commodity
prices, global consumer demand for energyparticularly in
Europe and emerging marketsand fiscal cliff negotiations
in the U.S.," the company said.