2Q Sales for MRC Global Down 11% - Modern Distribution Management

2Q Sales for MRC Global Down 11%

The decrease was due in part to declining oil country tubular goods sales.

MRC Global Inc. (NYSE: MRC), Houston, TX, No. 1 on MDM's 2013 list of top industrial pipes, valves and fittings distributors, reported sales for the second quarter of $1.3 billion, a decrease of 11 percent from the second quarter of 2012. Profit increased 13 percent to $43.9 million.

The sales decrease for the quarter was due in part to a planned reduction in the company’s lower-margin oil country tubular goods business. OCTG represented 9 percent of total sales in the second quarter, compared to 14 percent of sales in the second quarter of 2012.

Continued weakness in the company’s line pipe product group within the midstream and upstream sectors also impacted sales. Line pipe sales were $231.1 million for the second quarter, compared to $294.4 million for the same period in 2012. 

U.S. sales in the second quarter were $975.2 million and reflected an expected decrease in OCTG revenues of $83 million from the second quarter of 2012. Canadian sales in the second quarter were $153.6 million, down 4 percent from the same quarter in 2012 due primarily to a longer spring break-up in 2013. International sales were $139 million, a decrease of 8 percent from the same period in 2012.

For the first six months, sales for MRC Global were $2.6 billion, an 8.5 percent decrease from the same period a year ago. Profit increased 30.8 percent to $90 million.

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