Vallourec SA, a French producer of steel pipes for the oil and gas industry, reported a 50 percent decline in second-quarter profit.
Net income dropped to 56.6 million euros ($70 million) from 112.1 million euros a year earlier, the Boulogne Billancourt, France-based company said today in a statement. Sales increased by 3 percent to 1.33 billion euros, Vallourec said.
While oil and gas industries have improved, other markets have deteriorated, particularly industrial business in Europe and Brazil, and are unlikely to rebound this year, it said.
“For the rest of the year we expect the robust performance in oil & gas markets to continue to have a favorable impact on our mix,” Vallourec said in the statement. “Other markets will continue to be affected by the weak economic environment.”
The company maintained its estimate for the margin on earnings before interest, tax, depreciation and amortization in 2012 of close to 15 percent.