NEW YORK MRC
Global Inc.s third-quarter net income fell 30.2 percent
year on year even as its line pipe sales volumes jumped
"During the third
quarter we sold the largest volume of carbon line pipe from
stock in the companys history," chairman, president and
chief executive officer Andrew R. Lane said during the
Houston-based companys third-quarter earnings conference
"The pricing is not
where we want it to be but I see signs that it is starting to
stabilize," he said.
Line pipe sales
volumes rose 35 percent vs. the second quarter, with prices
down 7 percent in the same comparison, Lane said.
The company recorded
revenue of $278 million from its line pipe business and $106
million from its oil country tubular goods (OCTG) segment
during the period, executive vice president and chief financial
officer James E. Braun said, reflecting a change by MRC to
refocus its sales resources from OCTG to line pipe.
move away from OCTG (
amm.com, Feb. 25) was "timely" in light of the
markets competitive landscape and the large number of
planned domestic capacity additions, Lane said.
acquisitions in the pipe distribution business, Lane estimated
revenue for Marubeni-Itochu Tubulars America Inc., the
subsidiary of Marubeni-Itochu Steel Inc. (MISI) that recently
bought OCTG distributor Sooner Inc. (
amm.com, Sept. 9), at between $1.8 billion and $2
billion, while Sumitomo Corp.s footprint in domestic pipe
distribution is now estimated at around $4.5 billion after its
buy of Edgen Group Inc. (
amm.com, Oct. 1).
MRC Global posted net
income of $38.8 million during the quarter, down from $55.5
million in the same period last year, on revenue that declined
9.5 percent to $1.31 billion.