Pipes, valves and fittings distributor MRC Global Inc. (NYSE: MRC) of Houston reported 2021 third-quarter sales of $685 million, a 17% increase over the same quarter last year.
The company reported $686 million in sales in 2021’s second quarter.
MRC Global’s U.S. segment experienced modest growth, led by the downstream, industrial and energy transition sector, offset by the international segment, which declined due to delayed maintenance, repairs and operations and project activity.
“As compared to the third quarter of 2020, broad economic recovery drove improvement in sales across all sectors,” the company said.
The company’s 2021 3Q gross profit was $95 million, or 13.9% of sales, as compared to the third quarter of 2020’s gross profit of $114 million, or 19.5% of sales.
Gross profit for 2021 3Q includes $32 million of expense in cost of sales relating to the use of the last-in, first-out method of inventory cost accounting as compared to the third quarter of 2020, which reduced cost of sales by $11 million, the company said.
“Our third quarter results reflect solid execution and good cost control as we achieved adjusted EBITDA margins of 5.7%, the highest for our company in two years,” said Rob Saltiel, MRC Global’s president and CEO. “Our U.S. business grew 2% sequentially while our International segment experienced revenue declines due to delayed MRO and project activity. We expect double-digit revenue growth next year based on our growing backlog and increased customer activity.”