On February 23, Boulogne-Billancourt, France-based tubular producer Vallourec issued its financial results for the fourth quarter of 2009 and the whole year, pointing out that the company reacted quickly to the brutal change in market conditions that came with the downturn in the world economy by adapting production, costs and working capital requirements.
According to the financial results, the net profit of the company was €536.5 million in 2009, compared with a net profit of €1.02 billion in 2008, dropping 48 percent. Sales revenues in 2009 have seen a dramatic decrease of 31 percent, dropping from €6.44 billion in the previous year to €4.46 billion. Vallourec's earnings before interest, taxes, depreciation and amortization (EBITDA) of €980.6 million in 2009 were down 42 percent from €1.69 billion in 2008.
In the final quarter of 2009, the company's net profit was €101.6 million, dropping 3 percent compared with a net profit of €105.1 million in the previous quarter and down 67 percent compared with a net profit of €304.5 million in the same period of 2008. Sales revenues of €1.09 billion in the fourth quarter of 2009 have seen an 11 percent increase from €979.5 million in the third quarter of 2009 and a 40 percent decrease from €1.82 billion in the fourth quarter of 2008. Vallourec's earnings before interest, taxes, depreciation and amortization (EBITDA) of €228.8 million in the fourth quarter of 2009 were up 31 percent from €174 million in the previous quarter and down 54 percent from 491.6 million in the corresponding quarter of 2008.
Commenting on these results, company chairman Philippe Crouzet stated, "Benefiting from a strong balance sheet, we continued to expand our global footprint in 2009,with targeted acquisitions in Indonesia and the Middle East. The construction of our new integrated steel and tube mill in Brazil has advanced and is on course for industrial production by the end of the year, progressively ramping up through 2011."