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Vallourec — Earnings Release 2010
Feb 23, 2011
1738_iss_2011-02-23_550aaeba-8f15-424f-9180-e8b5ef1da730.pdf
Earnings Release
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vallourec
Press Release
Vallourec reports Q4 and Full Year 2010 results
Boulogne-Billancourt, 23 February 2011 - Vallourec, world leader in premium tubular solutions, today announced its results for the fourth quarter and full year 2010. The consolidated financial statements were presented today by Vallourec's Management Board to its Supervisory Board.
Key Figures
Q4 2010:
- Sales volume up 9% versus Q3 to 553 thousand tonnes
- Sales up 10% versus Q3 to € 1,303 million
- EBITDA of € 261 million representing 20.0% of sales (21.1% in Q3)
Full year 2010:
- Sales volume up 26% versus 2009 to 1,888 thousand tonnes
- Sales up 1% versus 2009 to € 4,491 million
- EBITDA of € 925 million representing 20.6% of sales (22.0% in 2009)
- Net income, Group share of € 410 million (€ 518 million in 2009)
- Proposed dividend of € 1.30 per share
2010 Highlights
- Recovery in volumes quarter on quarter as market conditions improved
- 3-year CAPTEN cost savings programme overachieved target
- Acquisition and successful integration of Serimax
- Strategic projects nearing completion in Brazil and France
- New investments launched to expand Vallourec's international footprint in the USA, China and the Middle East
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
Commenting these results, Philippe Crouzet, Chairman of the Management Board, stated:
"In 2010 we experienced a significant recovery following one of the worst economic downturns in recent history. Sales volumes increased quarter on quarter as market conditions improved. As a result, most of our plants operated at high utilisation rates in the second half of the year. Our CAPTEN cost savings programme, launched in 2008, delivered significant savings ahead of target. These combined improvements enabled Vallourec to compensate for significant price/mix changes and achieve an EBITDA margin above 20%.
2010 has also been a year of considerable investment to expand our international presence through a combination of strategic acquisitions and capital expenditure. It has been a year of significant progress in innovation and R & D. We are strengthening our capabilities for innovative solutions for the most critical applications with the start-up of a unique pilot rolling mill research centre in Germany, the expansion of our research centre in Brazil and the successful launch of two premium VAM connections for shale gas and the most critical environments.
2011 will be an important year for Vallourec as we advance our major strategic projects. Our new integrated plant in Brazil will progressively come on line and should start delivering products in Q4. The first billet was successfully pierced in December and the next steps involve the start up of the rolling mill, the finishing mill and the commissioning of the steel mill. Our new mill in France for steam generator tubes is ready to deliver products for our customers in the nuclear power industry. Both projects clearly illustrate our strategy of focusing on the fastest growing markets in our universe, improving our cost base and responding on time to our customers' needs."
Summary of results for fourth quarter (Q4) and full year (FY) 2010
(Comparison with Q3 2010, Q4 2009 and FY 2009)
| In € million | Q4 2010 | Q3 2010 | Change QoQ | Q4 2009 | Change YoY | FY 2010 | FY 2009 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Sales Volume (k tonnes) | 553 | 507 | +9% | 330 | +68% | 1,888 | 1,503 | +26% |
| Sales | 1,302.9 | 1,189.2 | +10% | 1,090.0 | +20% | 4,491.3 | 4,464.5 | +1% |
| EBITDA | 261.0 | 251.0 | +4% | 228.8 | +14% | 924.8 | 980.6 | -6% |
| As % of sales | 20.0% | 21.1% | 21.0% | 20.6% | 22.0% | |||
| Total net income | 119.9 | 129.9 | -8% | 101.6 | +18% | 452.8 | 536.5 | -16% |
| As % of sales | 9.2% | 10.9% | 9.3% | 10.1% | 12.0% | |||
| Net income, Group share | 107.7 | 115.2 | -7% | 100.9 | +7% | 409.6 | 517.7 | -21% |
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
MARKET ENVIRONMENT
Energy markets
Oil & Gas
2010 saw a strong increase in global oil demand, up 2.7mb/d to 87.7mb/d, reflecting robust economic growth in Asia, especially China. Oil prices were stable through most of the year and averaged $79/bbl¹. Further increases in oil demand drove them above $90 by the end of December and into January. Global oil demand is expected to increase by a further 1.4mb/d in 2011.
In the USA, the rig count increased by 42% in 2010, with 1,700 active rigs at the end of the year. Strong oil prices and weak gas prices contributed to a marked shift towards oil drilling; the oil rig count rose by 83% year on year, versus 21% for gas. Oil drilling now represents 44% of total rigs (compared to 20% in 2008) and uses more and more horizontal drilling and hydraulic fracturing techniques. Horizontal drilling, for both gas and oil shale reservoirs increased by 66% year on year to represent over 50% of all wells (compared to 25% in 2008). Moderate growth in drilling activity is forecast for 2011 with continued growth in unconventional drilling activity driving strong demand for premium OCTG.
Deepwater drilling in the Gulf of Mexico remained at a low level. Since the lifting of the offshore drilling moratorium in October 2010, only 2 deepwater permits have been issued. Activity is expected to remain below the pre-Macondo level for some time.
Oil & Gas activity remained dynamic in the rest of the world. In 2010, E&P² spending outside North America rose by an estimated 6% and the international rig count was up 9% to reach 1,118 active rigs at the end of December. Within this figure, the offshore rig count totalled 303 rigs, with strong growth in the North Sea (UK), the Gulf of Guinea, Brazil and Indonesia. International E&P expenditures are expected to rise by a further 12% in 2011, driven by higher capital spending from international oil companies (+18%). In contrast to the Gulf of Mexico, deepwater activity is expected to increase in the rest of the world, notably in Brazil, with pre-salt fields moving into production phase.
Power Generation
The economic crisis and progressive recovery of the last two years has provoked a clear shift in the power generation market. In the USA and Europe, when installed capacity needs to be revamped or replaced, energy efficiency measures, demand for cleaner energy sources and lower gas prices are strong incentives to switch away from coal in favour of gas-based technologies. Projects for new coal-fired power plants remain on hold. In the developing economies of Asia-Pacific, however, where electricity demand growth continues to be strong, much of the demand will be met by coal-fired power plants. Chinese and Indian boiler makers are benefiting from a good level of activity, driving an increase in new orders for boiler tubes; however the competition in these markets is intense.
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
1 WTI
2 Exploration & Production
Demand for nuclear power plants remains strong as global nuclear capacity is projected to rise by nearly 70% through 2030¹.
Petrochemicals
The market for petrochemicals improved throughout 2010 and remains buoyant into 2011. The Middle East is particularly dynamic with significant investments in upstream and downstream oil sectors and desalination projects. Activity is also improving in North America, Europe and in Asia Pacific, leading to a high level of orders for delivery in the coming quarters.
Non-Energy markets
2010 saw a rebound in global industrial production growth, up 8%, versus a decline of 9% in 2009. Europe experienced a strong recovery in motor vehicle production, and machinery production was higher than anticipated, with Germany and Northern Europe leading the way in terms of manufacturing exports. Brazil saw a strong industrial rebound with growth in automotive, mechanical and construction. These positive trends look set to continue in 2011.
Raw materials
2010 was marked by significant volatility in raw material prices. Supply disruptions caused significant scrap price increases in Europe and USA during Q4 and January 2011.
¹ Source ExxonMobil : “The outlook for Energy : A view to 2030”
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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SALES BY MARKET
In Q4 2010, sales volume increased by 9% versus Q3 and by 68% compared to Q4 2009, to reach 553 thousand tonnes. Following the strong recovery in sales volume during Q2, mill utilization rates returned to high levels across the Group. For the full year 2010, sales volume increased by 26% to reach 1,888 thousand tonnes, versus 1,503 thousand tonnes in 2009.
During the fourth quarter, sales increased by 10% sequentially to € 1,303 million, benefiting from a high level of sales for the oil & gas and nuclear power markets. For the full year 2010, sales totalled € 4,491 million, slightly ahead of full year 2009 (€ 4,465 million), but down 3% on a comparable scope basis.
(Comparison with Q3 2010, Q4 2009 and FY 2009)
| In € million | Q4 2010 | Q3 2010 | Change QoQ | Q4 2009 | Change YoY | FY 2010 | FY 2009 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Oil & Gas | 721 | 634 | +14% | 573 | +26% | 2,355 | 2,239 | +5% |
| Power Generation | 204 | 163 | +25% | 276 | -26% | 780 | 1,155 | -32% |
| Petrochemicals | 106 | 93 | +14% | 67 | +58% | 357 | 365 | -2% |
| Total Energy | 1,031 | 890 | +16% | 916 | +13% | 3,492 | 3,759 | -7% |
| % of total sales | 79% | 75% | 84% | 78% | 84% | |||
| Mechanical | 118 | 116 | +2% | 62 | +90% | 416 | 325 | +28% |
| Automotive | 86 | 88 | -1% | 66 | +32% | 318 | 197 | +61% |
| Construction & Other | 68 | 95 | -28% | 46 | +48% | 265 | 183 | +45% |
| Total non-Energy | 272 | 299 | -9% | 174 | +57% | 999 | 705 | +42% |
| % of total sales | 21% | 25% | 16% | 22% | 16% | |||
| Total | 1,303 | 1,189 | +10% | 1,090 | +20% | 4,491 | 4,465 | +1% |
Energy
Oil & Gas
In Oil & Gas sales in Q4 were up 14% sequentially to € 721 million, bringing sales for the full year 2010 to € 2,355 million, up 5% compared to 2009 which benefited from higher prices.
In the USA, sales dipped slightly during the quarter due to end of year inventory adjustments by distributors. Prices came under pressure towards the end of the year; however pricing adjustments have been announced, applicable from Q2 2011, to compensate for rising raw material costs. For the year as a whole, the USA recorded very strong sales growth, driven by horizontal drilling activity in the shale basins. In particular, Vallourec's finished goods offer combining pipe and premium connection was successfully welcomed by customers. In addition, the first orders for VAM SG, the new premium connection specially developed for unconventional shale drilling, were successfully threaded in December.
In the rest of the world, Q4 sales increased strongly, benefiting from a good level of activity in Europe, Africa, the Middle East and Brazil. Sales included significant deliveries of offshore line pipes for the Middle East. The market is expected to remain strong, and there continues to be a good level of international tendering activity for both OCTG and line pipe projects combined with higher premium requirements. Prices are well oriented and should help recover raw material
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
cost increases. However, high deliveries in Q4, strong bookings for deliveries in Q2 2011 and seasonal summer slowdown in Brazil, will result in lower sales during Q1 2011, to be offset by strong growth in subsequent quarters.
Power Generation
During Q4, Power Generation sales increased by 25% versus Q3 2010 to € 204 million due to high deliveries of steam generator tubes for the nuclear power market, whilst sales for the conventional power market remained broadly stable. For the full year, sales amounted to € 780 million, compared to € 1,155 million in 2009 (-32%) due to the sharp fall in bookings for new conventional power plants and a shift towards the more competitive Asian markets. However, bookings for conventional power plants increased and prices stabilized by year end, with new projects in the Middle East, China and India.
In 2010, sales for the nuclear power market represented close to 20% of total power generation sales, versus an average 10% of sales in previous years. With Vallourec's new capacity for nuclear boiler tubes to ramp up in 2011, sales for this market will record strong growth and represent an increasing proportion of future power generation sales.
Petrochemicals
Petrochemicals, sales increased sequentially by 14% during Q4 to € 106 million. Sales progressed steadily throughout the year to reach € 357 million for the full year 2010, just 2% below prior year. The Middle East was particularly dynamic as orders for major new petrochemical projects came through. In Q4, deliveries include the Rumaila oil field project in Iraq and the Amal Steam project in Oman. The market should continue to improve into 2011, with strong bookings for several major projects in the Middle East, South-East Asia and North America to be delivered from Q2 2011.
For the full year 2010, total Energy sales amounted to € 3,492 million, representing 78% of total Group sales, slightly below 2009 level due to the rebound of Non-Energy sales.
Non-Energy
In Non-Energy markets sales reached € 272 million during the quarter, as activity stabilized in the Mechanical Engineering and Automotive markets and returned to a normalized level in Construction. For the full year, sales amounted to € 1 billion, up 42% compared to 2009 due to strong growth for mechanical engineering in Germany, followed by the European Nordic countries. In Brazil as well, 2010 sales increased across all industrial markets; automotive, mechanical and construction. However, lower activity during the summer season will result in lower sales during Q1 2011.
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
RESULTS
Summary consolidated income statement
(Comparison with Q3 2010, Q4 2009 and FY 2009)
| In € million | Q4 2010 | Q3 2010 | Change QoQ | Q4 2009 | Change YoY | FY 2010 | FY 2009 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Sales Volume (k tonnes) | 553 | 507 | +9% | 330 | +68% | 1,888 | 1,503 | +26% |
| Sales | 1,302.9 | 1,189.2 | +10% | 1,090.0 | +20% | 4,491.3 | 4,464.5 | +1% |
| Cost of sales^{1} | -899.9 | -805.6 | +12% | -723.8 | +24% | -3,039.5 | -3,000.5 | +1% |
| SG&A costs^{1} | -124.1 | -128.0 | -3% | -118.3 | +5% | -487.5 | -448.4 | +9% |
| Other income/expense, net | -17.9 | -4.6 | -19.1 | -39.5 | -35.0 | |||
| EBITDA | 261.0 | 251.0 | +4% | 228.8 | +14% | 924.8 | 980.6 | -6% |
| As % of sales | 20.0% | 21.1% | 21.0% | 20.6% | 22.0% | |||
| Net income, Group share | 107.7 | 115.2 | -7% | 100.9 | +7% | 409.6 | 517.7 | -21% |
Consolidated sales for Q4 2010 reached € 1,303 million, up 10% versus Q3 2010. The increase in sales consisted of higher sales volume (+9.0%), a positive price/mix effect driven by high nuclear power sales (+3.1%), partly offset by a negative currency translation effect (-2.5%). Compared to Q4 2009, sales increased by 20%: the rebound in volumes (+68.0%), positive scope (+3.0%) and currency translation (+5.8%), were partly offset by a negative price/mix effect (-34.7%).
For the full year 2010, consolidated sales totalled € 4,491 million, slightly ahead of full year 2009 (€ 4,465 million). The recovery in sales volume (+25.6%), the positive scope effect from the integration of Serimax in Q3 2010 and a positive currency translation effect (+5.4%) were offset by a negative price/mix effect (-26.6%). The price/mix effect essentially reflects the price decline that took place during the sharp market downturn in 2009 and the mix deterioration due to the Power generation sales evolution (-32%).
EBITDA for Q4 2010 amounted to € 261 million, representing 20% of sales, slightly below the Q3 margin of 21.1%. End of year maintenance and higher activity lead to an increase of 12% in the cost of sales during the quarter, whilst selling, general and administrative costs (SG&A) decreased by 3%. Other expenses during the quarter include the implementation of the 2010 employee share offering "Value 10".
EBITDA for the full year 2010 amounted to € 925 million, 5.7% below prior year (€ 981 million), corresponding to an EBITDA/sales margin of 20.6%, versus 22.0% in 2009.
Higher sales volume from Q2 onwards and ongoing productivity gains, impacted positively the EBITDA margin but could not offset the negative price mix effect described above and the impact of the operational expenses relating to the commissioning of the new rolling mill at VSB in Brazil during the second half of the year.
Amortization and depreciation amounted to € 63 million in Q4 2010 and € 223 million for the full year 2010, an increase compared to 2009, following the integration of DPAL, Protools and
1 Before depreciation and amortization
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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Serimax. The charges relating to asset disposals and restructuring of € 8 million in Q4 and €16 million in 2010 primarily relate to the specialization of European plants.
The financial result amounted to € -13 million in Q4 2010 and € -28 million for the full year 2010, compared to € -5 million in 2009, reflecting mostly the change from a net cash position of € 407 million at 31 December 2009 to a net debt of € 381 million at 31 December 2010.
The effective tax rate was 28.2% for Q4 2010. It amounted to 30.5% for the full year 2010 compared to 31.7% in 2009 as a result of the geographical mix evolution of sales and profitability.
Total net income amounted to € 120 million in Q4 2010 and € 453 million for the full year 2010 compared to € 537 million in 2009. Net income, Group share amounted to € 410 million in 2010, down 21% compared to 2009.
Cash flow
Gross cash flow from operations amounted to € 171 million in Q4 2010 and € 708 million for the full year 2010, versus € 766 million in 2009, reflecting the lower year on year results. The working capital requirement increased by € 268 million in 2010, due to the strong recovery in activity from the second quarter of the year. In total, the Group generated operating cash flows of € 440 million in 2010.
Gross capital expenditure amounted to € 342 million in Q4 2010 and € 873 million in 2010, compared to € 677 million in 2009. Expenditure relating to VSB in Brazil accounted for € 407 million of the total € 873 million. Other strategic investments included the construction of the new tube mill in the USA, the extension of V&M Changzhou in China, and the capacity expansion of tubes for nuclear power plants in France.
Financial investments amounted to € 161 million in 2010 which includes € 145 million for the acquisition of Serimax.
Total cash outflow during the year amounted to € 787 million, resulting in a net debt of € 381 million at 31 December 2010 versus a positive cash balance of € 407 million at the end of 2009. Shareholders' equity amounted to € 4,824 million.
At 31 December 2010, the Group's cash exceeded its overdrafts and short term borrowings by € 433 million. Of the € 1,035 million of bank loans and other borrowings, 48% has a maturity in excess of 2 years. A new 5-year €1 billion revolving credit facility was signed on 10 February 2011. It will partially refinance existing credit lines, maturing in March 2012 and April 2013, enabling the Group to maintain its financial flexibility and to extend the maturity of its financial resources.
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
CAPTEN PROGRAMME
The CAPTEN programme was introduced early 2008 with the target of generating cost savings in excess of € 200 million by 2010 over the 2007 cost base through continuous improvement. The programme was rolled out across the entire Group, with the involvement of close to 1500 continuous improvement teams (CITs) focused on 4 key elements; productivity cost savings (40%), quality and service (25%), safety (20%) and environment (15%). It finally achieved pre-inflation cost savings of € 280 million at the end of 2010.
In safety, CAPTEN SAFE achieved a sustainable safety improvement across all activities, exemplified by a significant decrease of the lost-time injury rate (LTIR), from 9.3 in 2008 to 3.1 in 2010.
In 2011, a new, three-year CAPTEN+ programme is being launched with a broadened scope to improve operational efficiency and ensure quality, service and customer satisfaction. In addition, the programme aims to reduce the environmental footprint of the Group's industrial processes. Our key target is to generate cost savings of € 300 million by the end of 2013 compared to 2010.
OUTLOOK
In 2011, Vallourec considers that most of its markets will benefit from a favourable environment. During the first half of the year the Group will operate at a similar level to that of the second half of 2010. Nevertheless, there will be pressure on margins from the strong increase in raw material costs which will only be recovered progressively in sales prices, as well as start-up costs relating to the new mill in Brazil
In Q1, sales volumes will be impacted by an order book for deliveries which are mainly focused on Q2. A strong rebound in sales volume is expected in Q2.
PROPOSED DIVIDEND
The General Meeting of Shareholders to be held on 7 June 2011 will be asked to approve the payment of an ordinary dividend of € 1.30 per share for the financial year 2010, payable in cash or in shares at the shareholders' option. This proposed dividend corresponds to a payout ratio of 37.3% of net income, Group share, in line with the policy defined in 2003.
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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PRESENTATION OF Q4 AND FULL YEAR 2010 RESULTS
Wednesday 23 February
- Analyst conference call at 6:30 pm (CET) to be held in English
To participate in the call, please dial:
0800 073 0483 (UK), 0805 102 743 (FR), 1877 328 4999 (USA),
+44 1452 561 488 (other countries)
Conference code: 42504039
Thursday 24 February
- Analyst meeting in Paris at 8:30 am (CET) to be held in French
- Press conference at 10.30 am
Pavillon Gabriel
5 Avenue Gabriel - Metro Concorde
The analyst presentation will be audiocast with simultaneous translation on the Vallourec website: www.vallourec.com
CALENDAR 2011
- 12 May: Release of Q1 2011 Results
- 7 June: Shareholders' General Assembly
- 27 July: Release of Q2 and Half Year 2011 Results
- 29 – 30 September: Investor Day in Brazil
- 9 November: Release of Q3 2011 Results
ABOUT VALLOUREC
Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications.
With over 20,000 employees, integrated manufacturing facilities, advanced R&D, and presence in more than 20 countries, Vallourec offers its customers innovative global solutions to meet the growing energy challenges of the 21st century.
Listed on NYSE Euronext in Paris (ISIN code: FR0000120354, Ticker VK) and eligible for the Deferred Settlement System, Vallourec is included in the following indices: MSCI World Index, Euronext 100 and CAC 40.
In the United States, Vallourec has a sponsored Level 1 American Depository Receipt (ADR) program (ISIN code: US92023R2094, Ticker: VLOWY). The ratio of Vallourec ADR to ordinary shares is 5:1.
www.vallourec.com
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
FOR FURTHER INFORMATION, PLEASE CONTACT
Investor Relations
Etienne BERTRAND
Vallourec
Tel: +33 (0)1 49 09 35 58
E-mail: [email protected]
Communications
Stéphanie TESSIER
Vallourec
Tel: +33 (0)1 49 09 35 08
E-mail: [email protected]
Press
Caroline PHILIPS
Vallourec
Tel: +33 (0)1 41 03 77 50
E-mail: [email protected]
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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APPENDICES
Documents accompanying this release:
- Data on sales volume (metric tonnes)
- Summary consolidated income statement
- Summary consolidated balance sheet
- Summary cash flow statement
Sales volume
Sales volume corresponds to the volume in metric tonnes of hot-rolled tubes produced and delivered by Vallourec's rolling mills.
| In thousands of tonnes | 2010 | 2009 | Δ 10 / 09 |
|---|---|---|---|
| Q1 | 344.0 | 488.3 | - 29.6% |
| Q2 | 484.2 | 370.5 | +30.7% |
| Q3 | 507.2 | 314.6 | +61.2% |
| Q4 | 553.0 | 329.6 | +67.8% |
| Total | 1,888.4 | 1,503.0 | +25.6% |
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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Summary consolidated income statement
| VALLOUREC
(in € million) | Q4 2010 | Q3 2010 | Q4 2009 | Change
Q4'10 /
Q3'10 | Change
Q4'10 /
Q4'09 |
| --- | --- | --- | --- | --- | --- |
| Sales | 1,302.9 | 1,189.2 | 1,090 | +9.6% | +19.5% |
| Cost of sales¹ | -899.9 | -805.6 | -723.8 | +11.7% | +24.3% |
| Selling, general and administrative costs¹ | -124.1 | -128.0 | -118.3 | -3.0% | +4.9% |
| Other income (expense), net¹ | -17.9 | -4.6 | -19.1 | | |
| EBITDA | 261.0 | 251.0 | 228.8 | +4.0% | +14.1% |
| EBITDA as % of sales | 20.0% | 21.1% | 21.0% | | |
| Depreciation of industrial assets | -52.6 | -47.5 | -41.2 | +10.7% | +27.7% |
| Other (amortization, impairment & restructuring) | -16.7 | -19.9 | -27.7 | | |
| OPERATING INCOME | 191.7 | 183.6 | 159.9 | +4.4% | +19.9% |
| FINANCIAL INCOME | -12.7 | -5.6 | -10.0 | | |
| INCOME BEFORE TAX | 179.0 | 178.0 | 149.9 | +0.6% | +19.4% |
| Income tax | -50.5 | -48.3 | -44.4 | | |
| Net income of equity affiliates | -8.6 | 0.2 | -3.9 | | |
| CONSOLIDATED NET INCOME | 119.9 | 129.9 | 101.6 | -7.7% | +18.0% |
| NET INCOME, GROUP SHARE | 107.7 | 115.2 | 100.9 | -6.5% | +6.7% |
¹ Before depreciation and amortization
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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Summary consolidated income statement
| VALLOUREC
(in € million) | 2010 | as a %
of sales | 2009 | as a %
of sales | 2010 /
2009 |
| --- | --- | --- | --- | --- | --- |
| Sales | 4,491.3 | | 4,464.5 | | |
| Cost of sales | -3,039.5 | 67.7% | -3,000.5 | 67.2% | +1.3% |
| Selling, general and administrative costs¹ | -487.5 | 10.9% | -448.4 | 10.0% | +8.7% |
| Other income (expense), net¹ | -39.5 | | -35.0 | | |
| EBITDA | 924.8 | 20.6% | 980.6 | 22.0% | -5.7% |
| Depreciation of industrial assets | -184.0 | 4.1% | -151.0 | 3.4% | +21.9% |
| Other (amortization, impairment & restructuring) | -58.4 | 1.3% | -43.3 | 1.0% | |
| OPERATING INCOME | 682.4 | 15.2% | 786.3 | 17.6% | -13.2% |
| FINANCIAL INCOME | -27.8 | | -4.6 | | |
| INCOME BEFORE TAX | 654.6 | 14.6% | 781.7 | 17.5% | -16.3% |
| Income tax | -199.5 | | -247.5 | | |
| Net income of equity affiliates | -2.3 | | 2.3 | | |
| CONSOLIDATED NET INCOME | 452.8 | 10.1% | 536.5 | 12.0% | -15.6% |
| NET INCOME, GROUP SHARE | 409.6 | | 517.7 | | -20.9% |
¹ Before depreciation and amortization
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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Summary consolidated balance sheet
VALLOUREC
(in € million)
| 31/12/10 | 31/12/09 | 31/12/10 | 31/12/09 | ||
|---|---|---|---|---|---|
| Intangible assets, net | 266.5 | 250.3 | Shareholders’ equity (1) | 4,556.4 | 3,860.5 |
| Goodwill | 506.4 | 397.8 | Minority interests | 267.2 | 241.5 |
| Property, plant and equipment, net | 3,484.4 | 2,367.0 | Total equity | 4,823.6 | 4,102.0 |
| Investments in equity affiliates | 64.6 | 56.7 | |||
| Other non-current assets | 235.2 | 188.2 | |||
| Deferred tax assets | 59.8 | 36.4 | Bank loans and other borrowings | 813.7 | 634.9 |
| Total non-current assets | 4,616.9 | 3,296.4 | Employee benefits | 122.3 | 132.8 |
| Deferred tax liabilities | 136.6 | 125.7 | |||
| Other long-term liabilities | 59.5 | 7.0 | |||
| Total non-current liabilities | 1,132.1 | 900.4 | |||
| Inventories and work-in-progress | 1,190.3 | 927.2 | Provisions | 148.2 | 140.5 |
| Trade and other receivables | 863.6 | 612.0 | Overdrafts and other short-term bank borrowings | 220.7 | 116.2 |
| Derivatives - assets | 35.7 | 23.7 | Trade payables | 647.4 | 482.8 |
| Other current assets | 188.3 | 152.9 | Derivatives-liabilities | 29.7 | 29.5 |
| Cash and cash equivalents | 653.8 | 1,157.8 | Other current liabilities | 546.9 | 398.6 |
| Total current assets | 2,931.7 | 2,873.6 | Total current liabilities | 1,592.9 | 1,167.6 |
| TOTAL ASSETS | 7,548.6 | 6,170.0 | TOTAL LIABILITIES | 7,548.6 | 6,170.0 |
| Net debt | 380.6 | -406.7 | (1) Net income, Group share | 409.6 | 517.7 |
| --- | --- | --- | --- | --- | --- |
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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Summary consolidated cash flow statement
| (in € million) | Q4'10 | Q3'10 | Q4'09 | FY 2010 | FY 2009 |
|---|---|---|---|---|---|
| Gross cash flow from operations | 170.7 | 213.7 | 146.4 | 708.0 | 766.2 |
| Change in gross WCR | |||||
| [+ decrease, - increase] | 25.7 | -108.0 | 274.2 | -268.2 | 845.0 |
| Operating cash flows | 196.4 | 105.7 | 420.6 | 439.8 | 1,611.2 |
| Gross capital expenditure | -342.4 | -226.8 | -251.4 | -872.6 | -676.5 |
| Financial Investments | 0.0 | 0.0 | -59.2 | -161.1 | -108.7 |
| Dividends paid | -12.6 | -9.1 | -10.9 | -104.6 | -151.7 |
| Asset disposals & other elements | -82.6 | 5.4 | 18.4 | -88.7 | 78.9 |
| Change in net debt | |||||
| [+decrease, -increase] | -241.2 | -124.8 | 117.5 | -787.2 | 753.2 |
Information
Quarterly statements are unaudited. Audit procedures have been carried out for the full year consolidated financial statements. Final certification will take place before the Registration Document is filed with the AMF, mid-April 2011. Unless otherwise specified, the changes indicated are expressed in comparison with the previous year.
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