Moderate decrease of sales at € 1,313 million (- 5.1% vs Q1 08)
EBITDA margin up at 25.8% of sales (vs 24.7% in Q1 08)
Adapting production and costs to market slowdown
Strong cash flow generation (€ 320 million)
Capex maintained for strategic projects
Boulogne-Billancourt, 13 May 2009 - Vallourec, world leader in the production of seamless steel tubes, today announced its results for the first quarter of 2009.
Vallourec's results during Q1 2009 showed good resilience in a fast declining environment. In the first quarter of 2009, consolidated sales amounted to € 1,313.1 million, down 5.1% compared to prior year. EBITDA remained stable at € 339.3 million (-0.7%), giving an EBITDA/sales ratio of 25.8%, above the level of Q1 2008 (24.7%). The Group continued to generate strong operating cash flow (€ 320.1 million) and net debt was reduced by € 152.7 million to € 193.8 million. Net income, Group share, amounted to € 187.2 million, down 3.2% compared to prior year.
Commenting on these results, Philippe Crouzet, Chairman of the Management Board, stated:
"Although most markets are now engaged in a declining trend, Vallourec reported resilient results for the first quarter of 2009, thanks to the strength of our backlog coming out of 2008 and the cost reduction measures being implemented. The current recessionary environment is creating a significant reduction in demand, both in industrial activity and in the energy markets worldwide.
We continue to adapt our production and costs in line with the activity. The Group's strong balance sheet and cash-flow generation enable us to pursue strategic investments, aiming at improving competitiveness and preparing for future growth opportunities."
Quarterly statements are unaudited.
Unless otherwise specified, the changes indicated are expressed in comparison with the same period the previous year.