MRC 2Q Sales Growth Slows to 3% - Modern Distribution Management

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MRC 2Q Sales Growth Slows to 3%

The year-over-year growth was down from the 19% reported during the company's 2023 first quarter.
MRC Global 3Q 2023 sales
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On Aug. 7, Houston, Texas-based industrial PVF products distributor MRC Global announced its 2023 second-quarter earnings, which included sales of $871 million, a 3% improvement compared to the same quarter a year ago.

The year-over-year growth was down from the 19% reported during 1Q 2023. Sequentially, 2Q 2023 sales were down 1.6% versus the prior quarter.

Second-quarter 2023 gross profit was $175 million, or 20.1% of sales – compared to 2Q 2022 gross profit of $151 million, or 17.8% of sales. Adjusted EBITDA was $63 million in the second quarter of 2023 compared to $65 million for the same period in 2022.

“Our second quarter results delivered revenue growth over last year, better-than-expected cash flow generation and strong adjusted gross profit margins,” said Rob Saltiel, MRC Global’s President and CEO. “We expanded our revenue backlog in the quarter, aided by gains in our International segment and our DIET sector.”

Saltiel added, “We are anticipating lower annual growth in 2023 for our U.S. segment than previously forecast due primarily to a slower ramp-up in our Gas Utilities sector sales during the current construction season. Although the long-term growth fundamentals of this sector remain intact, several key Gas Utilities customers are currently focused on reducing their product inventory levels over the next few quarters due to more certainty in the supply chain and associated lead times. As a result, we expect full-year revenues to increase in the upper single-digit percentage range, compared to 2022 levels, an adjustment to our prior guidance.”

U.S. sales in 2Q 2023 were $727 million, up $10 million, or 1%, from 2Q 2022. PTI sector sales increased by $19 million, or 9%, resulting from increased customer facility infrastructure activity in the Permian and Rockies as well as pipeline activity in the Haynesville and Northeast.

The Gas Utilities sector revenue increased $10 million, or 3%, driven by increased capex spending for modernization and replacement activity. DIET sector sales decreased $19 million, or 10% due to the culmination of biofuel refinery projects.

 

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