TenarisConfab reports net loss for Q3

TenarisConfab reports net loss for Q3

Brazilian pipe and equipment producer TenarisConfab, a subsidiary of seamless steel pipe manufacturer Tenaris SA, reported a net loss of Real 9.5 million (approx. $3.3 million) for the third quarter of 2003. The company posted Real 71.1 million net profit for the same period last year. According to information obtained from a representative of the company, the low sales at company's pipe and equipment divisions affected negatively this quarter's results. The pipe sales decreased to 62'000 tons from 104'000 tons. Consequently, net operational revenue was down by 43.7% to Real 215.6 million in the third quarter. Furthermore, EBITDA dropped to Real 2.7 million in the third quarter of 2003 from Real 66.3 million recorded in the third quarter of 2002. Due to increased demand of gas pipelines in Brazil, domestic sales of tubes amounted to 49'000 tons with an increase of 277%. However, exports of tubes were down to 13'000 tons from 89'000 tons.