On May 12, Boulogne-Billancourt, France-based tubular producer Vallourec issued its financial results for the first quarter of 2010, stating that the company's sales and profit were down in the period in question.
In the first quarter of 2010, the company's net profit was €60.8 million, dropping 40 percent compared with a net profit of €100.9 million in the previous quarter and down 68 percent compared with a net profit of €187.2 million in the same period of 2009. Sales revenues of €877.4 million in the first quarter of 2010 saw a 20 percent decrease from €1.09 billion in the fourth quarter of 2009 and a 33 percent decrease from €1.31 billion in the first quarter of 2009. Vallourec's earnings before interest, taxes, depreciation and amortization (EBITDA) of €148.4 million in the first quarter of 2010 were down 35 percent from €228.8 million in the previous quarter and down 56 percent from €339.3 million in the corresponding quarter of 2009.
Commenting on these results, company chairman Philippe Crouzet stated, "As anticipated, sales and EBITDA were down during the first quarter, reflecting the low level of
orders of the last quarters, notably in power generation, and the full impact of price adjustments made in 2009. However, the level of bookings picked up significantly in most markets during Q1 and we believe that the low point is now behind us. We are rapidly adapting to meet the rebound in demand."