Vallourec SA, a French producer of steel pipes for the oil and gas industry, closed little changed in Paris trading after a guidance cut pushed the stock down 10 percent during the day.
Second-half earnings before interest, tax, depreciation and amortization will be similar to first-half results, the company said today in a statement. Vallourec said in July that Ebitda would be “slightly” higher in the second half.
Vallourec held steady at 44.01 euros at the 5:30 p.m. close of trade. The shares earlier slumped as much as 10 percent to 39.50 euros after the company revised its forecast, citing the “cautious attitude of the distributors in non-energy markets as a consequence of economic uncertainties” and currency moves.
The pipe producer, based in Boulogne Billancourt, said last month that the cost of steelmaking ingredients such as iron ore was squeezing margins. High raw-material expenses and weakening demand are hobbling steel-product makers’ efforts to emerge from the industry’s worst crisis in 60 years following the financial crisis.