France-based pipe manufacturer Vallourec has announced its financial results for the first quarter this year, noting that the first quarter results are in line with the expectations, with an improved overall financial performance.
In the first quarter, the company registered a net profit of €56 million, increasing by 60 percent year on year. Vallourec's sales revenues in the same period amounted to €1.3 billion, rising by 4.8 percent, while its operating income amounted to €109 million, up 21.1 percent, both year on year.
Vallourec's sales volume in the first quarter increased by 13.3 percent to 551,000 mt, compared to the corresponding quarter of the previous year. The company said that the higher volumes were partly offset by an overall negative price and product mix effect and a negative currency translation effect due to the weakened Brazilian real and US dollar against the euro.
According to Vallourec's statement, in the current year in the Europe, Africa, Middle East and Asia (EAMEA) region sales will continue to benefit from a dynamic Middle East market, which will be supplied by Vallourec's new industrial set-up, combining European mills, VSB and its local finishing units. In the US, the company continues to target higher sales, supported by recent market developments associated with an increased share of semi-premium and API products in its portfolio.
Vallourec foresees no change in trends in conventional power generation activity, while sales for nuclear power plants should benefit from the rescheduling of some projects from 2013 to 2014. The company added that the persisting strength of the euro will continue to impact negatively the profitability of deliveries from Europe.