MRC Global announces second quarter results

MRC Global had sales of $1.268 billion in the second quarter of 2013, a decrease of 11% from the second quarter of 2012

MRC Global’s Gary Ittner

MRC Global had sales of $1.268 billion in the second quarter of 2013, a decrease of 11% from the second quarter of 2012 due, in part, to a planned reduction in the company’s lower margin oil country tubular goods business. OCTG represented 9% of total sales in the second quarter of 2013 compared to 14% of total sales a year ago. Continued weakness in the company’s line pipe product group within the midstream and upstream sectors also impacted sales. Line pipe sales were $231.1 million for the second quarter of 2013 compared to $294.4 million for the same period in 2012.

Net income for the second quarter of 2013 increased 14% to $43.9 million. The refinancing of the company’s senior secured notes in November 2012 contributed to lower interest expense in 2013.

“While our revenues reflect reduced upstream and midstream customer spending primarily in the U.S., our efforts to improve operating margins and our fourth-quarter 2012 debt refinancing actions to lower our interest costs are resulting in net income and earnings-per-share improvements,” MRC Global Chairman, President and CEO Andrew Lane said. “In addition, we are executing on our growth strategy through the previously announced acquisition of Flow Control Products in the Permian Basin and the announcement and implementation of new contracts with NiSource and Celanese during the quarter.”

In other MRC Global news, Alan Colonna has assumed the role of executive vice president-business development and U.S. operations, while Gary Ittner has assumed the role of executive vice president-supply chain. The company also announced Executive Vice President-COO U.S. Operations and former CFO James Underhill is retiring after 33 years of service to the company in various operational and financial leadership roles.