MRC Global Inc., a global distributor of pipe, valves and fittings (PVF) and related products and services to the energy industry, announced Friday first quarter 2015 results.
The company's sales were $1.292 billion for the first quarter of 2015, which were 1 percent lower than the first quarter of 2014 and 14.5 percent lower than the fourth quarter of 2014. As compared to the first quarter of 2014, sales were negatively impacted by $46.1 million in the first quarter of 2015 due to weaker foreign currencies relative to the US dollar. Net income for the first quarter of 2015 was $29.1 million, or $0.28 per diluted share, compared to a first quarter 2014 net income of $23.5 million, or $0.23 per diluted share.
MRC Global's first quarter 2015 gross profit of $219.9 million, or 17.0 percent of sales, declined from first quarter 2014 gross profit of $232.1 million, or 17.8 percent of sales. The 80 basis point decline was a result of the impact of product mix changes and margin pressure in certain product categories related to the decline in oil prices. Gross profit for the first quarter 2015 and 2014 reflected a benefit of $0.2 million and a charge of $1.3 million, respectively, in cost of sales relating to the use of the LIFO method of inventory cost accounting.
US sales in the first quarter of 2015 were $971.8 million, an increase of 2.5 percent from the same quarter in 2014. The increase was attributable to increased midstream sales, including organic growth of 21.3 percent. Growth in the midstream sector was offset by reduced customer spending in the upstream sector.
Canadian sales in the first quarter of 2015 were $119.4 million, down 28.2 percent from the same quarter in 2014. The decrease in Canadian sales reflected a $53 million decrease in the upstream business primarily due to a decline in customer spending. Approximately $14.7 million, or 31 percent of the total decline, was a result of the weaker Canadian dollar relative to the US dollar.