NEW YORK Edgen Group Inc. has withdrawn its previously issued guidance for 2013 as it posted a first-quarter net loss of nearly $5.39 million on sales that fell 19.7 percent to $406.1 million.
"The near-term prospects of our energy and infrastructure (E&I) business are being affected by the steel pricing environment and delays in contract awards and customer purchasing decisions," chairman and chief executive officer Dan OLeary said in a statement. "We expect to get a clearer picture soon regarding the timing of these anticipated customer expenditures."
Sales from Edgens E&I unit fell 28 percent to $201.2 million in the three months ended March 31, while those from its oil country tubular goods (OCTG) segment dropped 10 percent to $205.2 million.
"Our OCTG business performance was excellent during the quarter, considering the decline in rig count and weakness in selling prices," OLeary said, and the Baton Rouge, La.-based company remains "optimistic about the long-term growth of our end markets and the power of our business model."
Earlier this year, the company had said it expected 2013 sales in a range of $1.2 billion to $1.5 billion by its E&I segment and OCTG sales of between $800 million and $900 million.