Vallourec Reports Drop in Revenue in Second Quarter
BOULOGNE BILLANCOURT, France – Vallourec, the parent of Vallourec Star in Youngstown, Ohio, announced Thursday that its revenues fell 25% during the second quarter versus the same period last year, and the market isn’t likely to improve during the second half of the year.
Vallourec manufacturers pipe and tube for the oil and gas industry, which has been hit hard because of the collapse in commodity prices.
The company reported net income of $846.2 million during the second quarter of 2016 compared to $1.29 billion a year ago. The struggling oil and gas industry has forced the company to place employees at the Youngstown plant on layoff and reduce its workforce and sell off some of its interests in Europe.
“Poor market conditions have continued to weigh on our first half 2016 revenues and results despite a second quarter which benefited from a better mix compared with the first quarter,” said Philippe Crouzet, Chairman of the Management Board. “The second half of 2016 will continue to be significantly impacted by low demand and intense pricing pressure.”
“The implementation of our transformation plan is moving forward in every region in line with our objectives,” Crouzet said. “These vigorous actions, and particularly the ongoing restructuring and divestments in Europe, are paving the way for a transformed and more competitive Vallourec positioned for long-term profitable growth when market conditions improve.”
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