Boulogne-Billancourt, 23 February 2011 - Vallourec, world leader in premium tubular solutions, today announced its results for the fourth quarter and full year 2010. The consolidated financial statements were presented today by Vallourec's Management Board to its Supervisory Board.
Sales volume up 9% versus Q3 to 553 thousand tonnes
Sales up 10% versus Q3 to € 1,303 million
EBITDA of € 261 million representing 20.0% of sales (21.1% in Q3)
Full year 2010:
Sales volume up 26% versus 2009 to 1,888 thousand tonnes
Sales up 1% versus 2009 to € 4,491 million
EBITDA of € 925 million representing 20.6% of sales (22.0% in 2009)
Net income, Group share of € 410 million (€ 518 million in 2009)
Proposed dividend of € 1.30 per share
Recovery in volumes quarter on quarter as market conditions improved
3-year CAPTEN cost savings programme overachieved target
Acquisition and successful integration of Serimax
Strategic projects nearing completion in Brazil and France
New investments launched to expand Vallourec's international footprint in the USA, China and the Middle East
Commenting these results, Philippe Crouzet, Chairman of the Management Board, stated:
"In 2010 we experienced a significant recovery following one of the worst economic downturns in recent history. Sales volumes increased quarter on quarter as market conditions improved. As a result, most of our plants operated at high utilisation rates in the second half of the year. Our CAPTEN cost savings programme, launched in 2008, delivered significant savings ahead of target. These combined improvements enabled Vallourec to compensate for significant price/mix changes and achieve an EBITDA margin above 20%.
2010 has also been a year of considerable investment to expand our international presence through a combination of strategic acquisitions and capital expenditure. It has been a year of significant progress in innovation and R & D. We are strengthening our capabilities for innovative solutions for the most critical applications with the start-up of a unique pilot rolling mill research centre in Germany, the expansion of our research centre in Brazil and the successful launch of two premium VAM connections for shale gas and the most critical environments.
2011 will be an important year for Vallourec as we advance our major strategic projects. Our new integrated plant in Brazil will progressively come on line and should start delivering products in Q4. The first billet was successfully pierced in December and the next steps involve the start up of the rolling mill, the finishing mill and the commissioning of the steel mill. Our new mill in France for steam generator tubes is ready to deliver products for our customers in the nuclear power industry. Both projects clearly illustrate our strategy of focusing on the fastest growing markets in our universe, improving our cost base and responding on time to our customers' needs."
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011.
Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.