Pipes, valves and fittings distributor MRC Global Inc. (NYSE: MRC), Houston, reported first quarter revenue totaled $609 million, which was 5% higher than the previous fourth quarter but 23% lower than the first quarter of 2020.
MRC posted a first-quarter loss of $9 million after reporting a profit of $3 million in the same period a year ago.
In Tuesday’s earnings report, MRC announced that sequentially all of its sectors experienced an increase in sales, except for gas utilities, which was “lower due to an unseasonably higher than average fourth quarter.” When compared to the Q1 2020, only gas utilities’ sales increased on a year-over-year basis in the recent first quarter. MRC said all other segments and sectors declined as the impact of the COVID-19 pandemic reduced customer spending.
Revenues from carbon pipe, fittings and flanges decreased 30.2% year-over-year to $150 million while revenues for valves, automation, measurement and instrumentation declined 25.4% to $241 million.
Gas products were mostly flat at $134 million while sales for general products fell 35.3% to $55 million. Revenues for the stainless steel, and alloy pipe and fittings sector were down 21.6% to $29 million.
Sales generated from the U.S. segment totaled $484 million, which was down 24% year-over-year. Canadian sales were decreased by 36% year-over-year to $32 million while international sales were down 12% to $93 million.
In March, MRC Global announced the appointment of Rob Saltiel as president and CEO. Tuesday’s earnings report was Saltiel’s first as president and CEO.
“I am pleased with the solid first quarter performance that our team delivered,” he says. “Despite a slow start to the quarter resulting from customer budget resets and extreme weather conditions, we were able to achieve a 5% sequential revenue increase, a stronger bottom line and continued cash flow generation, reflecting an improved business environment.”