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Vallourec — Earnings Release 2012
Jul 26, 2012
1738_iss_2012-07-26_b7939748-c54e-478e-b651-59f9e5e45fc4.pdf
Earnings Release
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vallourec
Press Release
Vallourec reports Q2 and Half Year 2012 results
Boulogne-Billancourt, 26 July 2012 - Vallourec, world leader in premium tubular solutions, today announced its results for the second quarter and first half of 2012. The consolidated financial statements were presented by Vallourec's Management Board to its Supervisory Board.
Q2 2012:
- Sales up 11% versus Q1 2012 at €1,328 million
- EBITDA of €191 million; up 25% versus Q1 2012 at 14.4% of sales
- Net income, Group share of €57 million
H1 2012:
- Sales of €2,527 million
- EBITDA of €343 million; 13.6% of sales
- Net income, Group share of €85 million
Highlights:
- Ramp-up of VSB progressing according to schedule
- First billet pierced at new US pipe mill on 29 June 2012
Outlook:
- EBITDA margin objective maintained in a difficult environment for non-Oil & Gas
Summary of results
Comparison of Q2 2012 with Q1 2012 and Q2 2011; H1 2012 with H1 2011
| In € million | Q2 2012 | Q1 2012 | Change QoQ | Q2 2011 | Change YoY | H1 2012 | H1 2011 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Sales Volume (k tonnes) | 528 | 504 | +5% | 561 | -6% | 1,032 | 1,062 | -3% |
| Sales | 1,328 | 1,199 | +11% | 1,290 | +3% | 2,527 | 2,438 | +4% |
| EBITDA | 191 | 152 | +25% | 254 | -25% | 343 | 458 | -25% |
| As % of sales | 14.4% | 12.7% | 19.7% | 13.6% | 18.8% | |||
| Total net income | 71 | 40 | +77% | 126 | -44% | 112 | 219 | -49% |
| Net income, Group share | 57 | 29 | +98% | 112 | -50% | 85 | 194 | -56% |
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
Commenting these results, Philippe Crouzet, Chairman of the Management Board, stated:
"The Group recorded an improvement in activity during the second quarter, largely driven by Oil & Gas sales and continued demand for our premium products. Our VAM 21® connection, the highest performing for the most complex environments, recently recorded its first bookings in the Middle East, following its commercial success in the North Sea, Brazil and South-East Asia.
In contrast, demand in other markets has remained weak. The outlook for these markets, notably for industrial markets in Europe and Brazil, has recently deteriorated, with no improvement expected for the rest of the year.
We have therefore adjusted the level of activity of our European mills and are strengthening our CAPTEN+ cost savings initiative through immediate cost reductions across the Group.
The ramp-up of our two major strategic projects, VSB in Brazil and VM2 in the USA, is progressing in line with the revised schedule. On June 29, the first billet was successfully pierced in the new mill in the USA. It is on schedule to roll its first pipe in the autumn.
For the rest of the year, we expect the robust performance in Oil & Gas markets to continue to have a favourable impact on our mix. Other markets will continue to be affected by the weak economic environment. Despite this, and with the contribution of our adaptation and cost saving measures, we maintain our objective of an EBITDA margin close to 15% for the full year 2012."
MARKET ENVIRONMENT
Oil & Gas
After a progression of 14% during Q1 2012, within a context of strong political tension in the Middle East, oil prices declined by 19% during Q2. They averaged $112/bbl in H1 2012, 3% below H1 2011, but remain at a high level. As a consequence, global exploration and production expenditures continue to grow and are forecast to rise above $600 billion¹ in 2012, up 10% versus 2011.
In the USA, the number of active rigs² remained at a high level and averaged 1,970 during Q2, down 1% versus the prior quarter, but still up 8% versus prior year. Oil drilling, notably in shale plays, increased by 8% in Q2, to reach 73% of rigs compared to 53% a year earlier. OCTG consumption stabilised during the quarter.
In the rest of the world, the rig count² increased by 9% during the first half of the year, to reach 1,285 active rigs, with high levels of activity in most regions and strong growth in the Middle East, Africa, and the North Sea.
Power generation
Pipe demand for the conventional power generation market remained subdued during H1 2012 due to low investments and delays of certain projects. Most new-build activity is concentrated in Asia, where local competition is intense. In OECD countries, maintenance of existing power plants represents a growing share of the market and new projects are rare.
¹ Barclays : Global E&P Capital Spending Update – 18 May 2012
² Baker Hughes (International rig count = outside North America)
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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The Chinese State Council recently approved the nuclear safety plan, an important step in the approval process for new nuclear plants to restart. In addition to retrofitting projects to extend the lifetime of existing plants, projects for new nuclear power plants are also planned in the UK, Eastern Europe and the Middle East.
Petrochemicals
The pipe market for process and petrochemical projects benefits from a large number of projects under construction in the Middle East, South-East Asia, and North America, nevertheless, the market is very competitive.
Non-energy markets
In Europe, the non-energy markets were directly affected by reduced investments and lower industrial production. End-user demand for pipe for machine building, construction and automotive remained subdued and distributors of industrial products maintained inventories at low levels. Market expectations were revised downwards in June, and business confidence has dropped as the hoped for signs of recovery failed to materialise. The German VMDA¹ announced that plant and machinery orders were down 11% in April and 6% in May compared to the same prior year period.
In Brazil, the business outlook² has also deteriorated. The forecast for IP growth fell from 3.4% in December to just below zero in July. This concerns virtually all industries, especially automotive, with the notable exception of Oil & Gas related markets.
Raw materials
Scrap prices were broadly stable during the first half of the year; however they fell by 5-10% in June and July on reduced demand. Spot prices for iron ore, weakened slightly at the end of Q2.
Currency
The European debt crisis contributed to a weakening of the euro versus the US dollar which, as a result of the Group's hedging policy, should have a favourable impact in H2. In Brazil, the monetary easing measures taken by the Central Bank to reduce the overvaluation of the real have resulted in a 15% decline versus the US dollar since the start of the year.
CONSOLIDATED SALES
Consolidated sales in Q2 2012 amounted to € 1,328 million, up 11% versus Q1 2012. In H1 2012 consolidated sales amounted to € 2,527 million, up 4% year on year.
SALES VOLUME
In Q2 2012, sales volume of rolled tubes amounted to 528 thousand tonnes, up 5% sequentially. For H1 2012 sales volume amounted to 1,032 thousand tonnes, down 3% compared to prior year primarily due to lower volumes in Europe.
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
1 VMDA : Verband Deutscher Mashchinen und Anlagenbau – July 3 2012
2 Source : Banco Central do Brasil: Focus Report
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SALES BY REGION
Comparison of Q2 2012 with Q1 2012 and Q2 2011; H1 2012 with H1 2011
| In € million | Q2 2012 | Q1 2012 | Change QoQ | Q2 2011 | Change YoY | H1 2012 | H1 2011 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Europe | 293 | 301 | -3% | 362 | -19% | 594 | 665 | -11% |
| North America | 339 | 365 | -7% | 324 | +5% | 704 | 623 | +13% |
| South America | 348 | 278 | +25% | 271 | +28% | 626 | 541 | +16% |
| Asia & Middle East | 233 | 167 | +40% | 263 | -11% | 400 | 462 | -13% |
| Rest of World | 115 | 88 | +31% | 70 | +64% | 203 | 147 | +38% |
| Total | 1,328 | 1,199 | +11% | 1,290 | +3% | 2,527 | 2,438 | +4% |
In Europe, Q2 2012 sales were slightly below the Q1 2012 level. For H1 2012, sales amounted to €594 million (24% of sales), down 11% versus H1 2011, impacted by the economic slowdown.
In North America, Q2 sales were down 7% compared to Q1 due to lower sales of drill pipes and non-OCTG. For H1 2012, sales were up 13% year on year to €704 million (28% of sales), reflecting the high level of Oil & Gas activity.
In South America, Q2 sales were up 25% sequentially reflecting higher volumes and a richer product mix, with a greater proportion of premium Oil & Gas sales. For H1 2012, sales were up 16% versus prior year at €626 million (25% of sales).
Sales to Asia and the Middle East increased in Q2 to €233 million, up 40% following a low level in Q1. For H1 2012, sales amounted to €400 million (16% of sales), down 13% year on year, mainly due to lower power generation sales in China.
SALES BY MARKET
Comparison of Q2 2012 with Q1 2012 and Q2 2011; H1 2012 with H1 2011
| In € million | Q2 2012 | Q1 2012 | Change QoQ | Q2 2011 | Change YoY | H1 2012 | H1 2011 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Oil & Gas | 816 | 700 | +17% | 650 | +26% | 1,516 | 1,280 | +18% |
| Power Generation | 140 | 138 | +1% | 180 | -22% | 278 | 315 | -12% |
| Petrochemicals | 90 | 85 | +6% | 100 | -10% | 175 | 180 | -3% |
| Total Energy | 1,046 | 923 | +13% | 930 | +12% | 1,969 | 1,775 | +11% |
| % of total sales | 79% | 77% | 72% | 78% | 73% | |||
| Mechanical | 128 | 125 | +2% | 169 | -25% | 253 | 311 | -19% |
| Automotive | 60 | 65 | -8% | 98 | -39% | 125 | 180 | -31% |
| Construction & Other | 94 | 86 | +9% | 93 | +1% | 180 | 172 | +5% |
| Total non-Energy | 282 | 276 | +2% | 360 | -22% | 558 | 663 | -16% |
| % of total sales | 21% | 23% | 28% | 22% | 27% | |||
| Total | 1,328 | 1,199 | +11% | 1,290 | +3% | 2,527 | 2,438 | +4% |
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
Energy
Oil & Gas sales in Q2 2012 amounted to €816 million, up 17% sequentially. For H1 2012 sales were up 18% year on year, representing 60% of total sales compared to 53% in H1 2011.
The USA continued to see an improved product mix with higher sales of premium OCTG to serve the complex shale plays rich in liquid hydrocarbons, together with strong demand for VAM® connections and large diameter premium pipes for the Gulf of Mexico.
The rest of the world saw strong sales growth during Q2 notably in the Middle East, West Africa and Brazil following a low Q1. The backlog at the end of Q2 was around 6 months of production. Bookings for offshore line pipes also improved during the quarter. The outlook for Oil & Gas is well oriented for the rest of the year.
Power Generation sales in Q2 2012 amounted to €140 million, broadly flat compared to Q1. For H1 2012, sales were down 12% year on year.
Sales for conventional power plants declined sequentially and compared to prior year due to lower volumes and a less favourable product mix. A number of deliveries have been postponed as the construction of some new power plants in Asia are facing delays. The effect of these delays will impact power generation sales in 2012, which are now expected to be below 2011.
Sales for nuclear power plants increased sequentially and were broadly stable year on year. During the quarter, Valinox Nucléaire was awarded its second contract to manufacture tubes steam generators of 1300MW for EDF to be delivered in 2014.
Petrochemicals sales were €90 million in Q2 2012, up 6% sequentially. Sales in H1 2012 were slightly below prior year. Project activity has picked up in the Middle East, Asia and the USA, offsetting weaker demand in Europe.
Non-Energy
Non-Energy sales (Mechanical, Automotive, Construction and other) amounted to €282 million in Q2 2012, broadly in line with the first quarter. Sales were impacted by the economic slowdown, particularly in Europe, which has resulted in lower bookings and sales since the second half of 2011. In H1 2012, non-Energy sales were down 16%. They represented 22% of total sales versus 27% in H1 2011.
Mechanical sales were €127 million in Q2 2012, in line with sales of Q1. For H1 2012 sales were down 19% versus prior year. Distributors have maintained their stocks at low levels. Lower raw material prices, lower activity in Europe and low visibility for end-user demand has put pressure on pricing.
Automotive sales were €60 million in Q2 2012 versus €65 million in Q1. In H1 2012 sales were down 31% year on year. The decline was mainly due to a high level of inventory of heavy vehicles following the introduction of new safety and environmental standards in Brazil.
Construction and other sales were €94 million in Q2 2012, up 9% sequentially. In H1 2012 sales were up 5% year on year, mainly due to consolidation of TSA since 1 January 2012. This segment includes sales of iron ore in Brazil, which saw a 15% decrease in contract prices in Q1, followed by a further 10% decrease in Q2.
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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RESULTS
Summary consolidated income statement
Comparison of Q2 2012 with Q1 2012 and Q2 2011; H1 2012 with H1 2011
| In € million | Q2 2012 | Q1 2012 | Change QoQ | Q2 2011 | Change YoY | H1 2012 | H1 2011 | Change YoY |
|---|---|---|---|---|---|---|---|---|
| Sales Volume (k tonnes) | 528 | 504 | +5% | 561 | -6% | 1,032 | 1,062 | -3% |
| Sales | 1,328 | 1,199 | +11% | 1,290 | +3% | 2,527 | 2,438 | +4% |
| Cost of sales¹ (as % of sales) | 73.7% | 75.4% | 68.4% | 74.5% | 68.8% | |||
| SG&A costs¹ (as % of sales) | 11.4% | 12.0% | 11.1% | 11.7% | 11.8% | |||
| EBITDA | 191 | 152 | +25% | 254 | -25% | 343 | 458 | -25% |
| As % of sales | 14.4% | 12.7% | 19.7% | 13.6% | 18.8% | |||
| Net income, Group share | 57 | 29 | +98% | 112 | -50% | 85 | 194 | -56% |
Sales in Q2 2012 rose by 11% sequentially to €1,328 million, reflecting a 5% increase in sales volume and a favourable price and mix effect of 6%. In H1 2012, sales were up by 4% year on year to €2,527 million, driven by strong sales in Oil & Gas, offset by significantly lower sales in other activities (Power generation, Mechanical and Automotive). Overall the decline in sales volume (-3%) was offset during the semester by a positive price and mix effect (+5%) and positive scope effect (+1%). As a result of the hedging policy the currency effect was negligible.
The cost of sales represented 73.7% of sales in Q2 versus 75.4% of sales in Q1, benefiting from higher volumes allowing better absorption of fixed costs. In H1 2012 the cost of sales represented 74.5% versus 68.8% of sales in H1 2011; the increase mainly reflects the ramp up costs at VSB and lower volumes in Europe where mills are currently operating at around 80% of capacity.
Sales, general and administrative costs (SG&A) amounted to 11.4% of sales in Q2 compared to 12.0% of sales in Q1. In H1 2012, SG&A at 11.7% of sales were in line with prior year (11.8% of sales).
EBITDA in Q2 2012 amounted to €191 million, up 25% sequentially at 14.4% of sales, bringing H1 2012 EBITDA to €343 million (13.6% of sales). EBITDA and EBITDA margin were below that of 2011 due to the start-up costs of VSB and the under-absorption of fixed costs in Europe.
Depreciation of industrial assets totalled €55 million, in line with Q1 2012. It amounted to €110 million in H1 2012, up 9% compared to H1 2011 reflecting the progressive ramp up of new capacities. Other amortization was stable during the quarter at €17 million, totalling €33 million in H1 2012, versus €25 million in H1 2011.
Financial charges in Q2 2012 amounted to €24 million, in line with Q1 2012. They amounted to €48 million in H1 2012, versus €24 million in H1 2011, in line with the evolution of net debt.
The effective tax rate was 30% in Q2 and H1 2012 compared to 29% in H1 2011.
Total net income was €71 million in Q2 2012, up 77% versus Q1. Net income, Group share amounted to €57 million, up 98% sequentially. In H1 2012, total net income was €112 million
¹ Before depreciation and amortization
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
versus €219 million in H1 2011. Minority interests were broadly stable at €26 million in H1 2012. Net income, Group share totalled €85 million, down 56% versus prior year.
Cash flow
Operations generated gross cash flow of €151 million in Q2 2012; with the working capital requirement broadly stable (up €27 million), operating cash flows amounted to €125 million. In H1 2012 gross cash flow from operations amounted to €204 million and operating cash flow was positive at €46 million, reflecting the increase in working capital requirement primarily during the first quarter.
Capital expenditure amounted to €201 million during the quarter, to reach €341 million during H1 2012, of which €252 million related to strategic projects, notably the new mill in the USA. Expected capex for the full year 2012 remains unchanged at around €820 million.
Dividends paid during the quarter amounted to €175 million, of which €150 million related to the dividend in respect of the 2011 results, paid on 27 June.
Total cash outflow amounted to €251 million during the quarter and €473 million in H1 2012, increasing the net debt to €1,667 million at 30 June 2012, representing 32.7% of equity.
STRATEGIC PROJECTS
The ramp up of VSB in Brazil and the new mill in the USA is progressing according to the revised schedule indicated last May.
In Youngstown, the first billet was successfully pierced on 29 June and the mill is on course to roll the first pipe in the autumn.
OUTLOOK
In the second half of the year, Group sales should continue to benefit from the sustained demand in the Oil & Gas markets. However, for other markets the outlook is unfavorable, notably in Europe and Brazil where most economic indicators have recently been revised downwards, pointing to a lack of the expected recovery. In this weak environment, the Group continues to adapt its production capacities in Europe and accelerate its cost savings program. Thanks to these measures, together with a better mix driven by the Oil & Gas activity and the favorable impact of US dollar strengthening, and under present market conditions, Vallourec maintains its objective of a progressive margin increase to reach an EBITDA margin close to 15% for the full year 2012.
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
ABOUT VALLOUREC
Vallourec is a world leader in premium tubular solutions primarily serving the energy markets, as well as other industrial applications.
With over 22,000 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
PRESENTATION OF Q2 AND H1 2012 RESULTS
Thursday 26 July
- Analyst conference call at 6:30 pm (CET) to be held in English
To participate in the call, please dial:
0800 694 0257 (UK), 0805 632 056 (FR), 1866 966 9439 (USA),
+44 1452 555 566 (other countries)
Conference code: 98323839
Friday 27 July
- Press conference at 8:30am
- Analyst meeting in Paris at 10:30am (CET) to be held in French
- Maison des Centraliens
8 rue Jean Goujon – Metro Franklin Roosevelt
The slides and audiocast of the presentation with simultaneous translation in English, will be available on the website: www.vallourec.com
CALENDAR 2012
- 7 November: Release of Q3 2012 Results
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
FOR FURTHER INFORMATION, PLEASE CONTACT
Investor Relations
Etienne BERTRAND
Tel: +33 (0)1 49 09 35 58
E-mail: [email protected]
Press Relations
Caroline PHILIPS
Tel: +33 (0)1 41 03 77 50
E-mail: [email protected]
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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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 | 2012 | 2011 | 2012 / 2011 |
|---|---|---|---|
| Q1 | 504.3 | 500.7 | +0.7% |
| Q2 | 527.7 | 561.2 | -6.0% |
| Q3 | 600.8 | ||
| Q4 | 588.6 | ||
| Total | 2,251.3 |
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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Summary consolidated income statement
| VALLOUREC
(in € million) | Q2 2012 | Q1 2012 | Change
Q2'12 /
Q1'12 | Q2 2011 | Change
Q2'12 /
Q2'11 |
| --- | --- | --- | --- | --- | --- |
| Sales | 1,328.1 | 1,199.2 | 10.7% | 1,290.1 | 2.9% |
| Cost of sales¹ | -978.9 | -904.6 | 8.2% | -882.3 | 10.9% |
| Selling, general and administrative costs¹ | -151.5 | -143.9 | 5.3% | -142.6 | 6.2% |
| Other income (expense), net | -7.0 | 1.6 | | -10.9 | |
| EBITDA | 190.7 | 152.3 | 25.2% | 254.3 | -25,0% |
| EBITDA as % of sales | 14.4% | 12.7% | | 19.7% | |
| Depreciation of industrial assets | -54.8 | -55.0 | -0.4% | -47.3 | 15.9% |
| Other (amortization, impairment & restructuring) | -17.1 | -17.0 | | -17.5 | |
| OPERATING INCOME | 118.8 | 80.3 | 47.9% | 189.5 | -37.3% |
| FINANCIAL INCOME | -23.5 | -24.1 | -2.5% | -17.7 | 32.8% |
| INCOME BEFORE TAX | 95.3 | 56.2 | 69.6% | 171.8 | -44.5% |
| Income tax | -28.2 | -17.3 | 63.0% | -45.3 | -37.7% |
| Net income of equity affiliates | 4.2 | 1.4 | | -0.2 | |
| CONSOLIDATED NET INCOME | 71.3 | 40.3 | 76.9% | 126.3 | -43.5% |
| NET INCOME, GROUP SHARE | 56.6 | 28.6 | 97.9% | 112.1 | -49.5% |
¹ Before depreciation and amortization
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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Summary consolidated income statement
(in € million)
| VALLOUREC
(in € million) | H1 2012 | as a % of sales | H1 2011 | as a % of sales | 2012 / 2011 |
| --- | --- | --- | --- | --- | --- |
| Sales | 2,527.3 | | 2,437.9 | | 3.7% |
| Cost of sales¹ | -1,883.5 | 74.5% | -1,676.8 | 68.8% | 12.3% |
| Selling, general and administrative costs¹ | -295.4 | 11.7% | -288.5 | 11.8% | 2.4% |
| Other income (expense), net¹ | -5.4 | | -14.9 | | -63.8% |
| EBITDA | 343.0 | 13.6% | 457.7 | 18.8% | -25.1% |
| Depreciation of industrial assets | -109.8 | 4.3% | -100.9 | 4.1% | 8.8% |
| Other (amortization, impairment & restructuring) | -34.1 | | -25.4 | | 34.3% |
| OPERATING INCOME | 199.1 | 7.9% | 331.4 | 13.6% | -39.9% |
| FINANCIAL INCOME | -47.6 | 1.9% | -24.4 | 1.0% | 95.1% |
| INCOME BEFORE TAX | 151.5 | 6.0% | 307.0 | 12.6% | -50.7% |
| Income tax | -45.5 | | -89.4 | | -49.1% |
| Net income of equity affiliates | 5.6 | | 1.4 | | |
| CONSOLIDATED NET INCOME | 111.6 | 4.4% | 219.0 | 9.0% | -49.0% |
| NET INCOME, GROUP SHARE | 85.2 | | 194.0 | | -56.1% |
¹ Before depreciation and amortization
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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Summary consolidated balance sheet
VALLOUREC
(in € million)
| 30/06/12 | 31/12/11 | 30/06/12 | 31/12/11 | ||
|---|---|---|---|---|---|
| Intangible assets, net | 258.7 | 277.0 | Shareholders’ equity (1) | 4,688.2 | 4,830.3 |
| Goodwill | 531.7 | 519.8 | Minority interests | 409.8 | 380.0 |
| Net tangible fixed assets | 4,158.8 | 4,066.3 | Total equity | 5,098.0 | 5,210.3 |
| Biological assets | 193.8 | 184.3 | |||
| Investments in equity affiliates | 151.8 | 146.7 | |||
| Other non-current assets | 361.2 | 289.0 | |||
| Deferred tax assets | 184.1 | 140.8 | Bank loans and other borrowings | 945.5 | 1,189.2 |
| Total non-current assets | 5,840.1 | 5,623.9 | Employee benefits | 113.2 | 116.7 |
| Deferred tax liabilities | 224.2 | 198.8 | |||
| Other long-term liabilities | 164.6 | 102.1 | |||
| Total non-current liabilities | 1,447.5 | 1,606.8 | |||
| Inventories and work-in-progress | 1,547.1 | 1,388.9 | Provisions | 140.5 | 120.3 |
| Trade and other receivables | 970.6 | 1,057.9 | Overdrafts and other short-term bank borrowings | 1,300.7 | 906.2 |
| Derivatives - assets | 44.1 | 39.7 | Trade payables | 629.6 | 668.7 |
| Other current assets | 223.5 | 182.5 | Derivatives-liabilities | 108.5 | 115.7 |
| Cash and cash equivalents | 579.4 | 901.9 | Other current liabilities | 480.0 | 566.8 |
| Total current assets | 3,364.7 | 3,570.9 | Total current liabilities | 2,659.3 | 2,377.7 |
| TOTAL ASSETS | 9,204.8 | 9,194.8 | TOTAL LIABILITIES | 9,204.8 | 9,194.8 |
| Net debt | 1,666.8 | 1,193.5 | (1) Net income, Group share | 85.2 | 401.6 |
| --- | --- | --- | --- | --- | --- |
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
Summary consolidated cash flow statement
| (in € million) | Q2'12 | Q1'12 | Q2'11 | H1'12 | H1'11 |
|---|---|---|---|---|---|
| Gross cash flow from operations | 151.3 | 52.5 | 192.7 | 203.8 | 266.4 |
| Change in gross WCR | |||||
| [+ decrease, - increase] | -26.8 | -131.5 | -59.2 | -158.3 | -299.4 |
| Operating cash flows | 124.5 | -79.0 | 133.5 | 45.5 | -33.0 |
| Gross capital expenditure | -200.7 | -140.2 | -193.9 | -340.9 | -388.6 |
| Financial Investments | - | - | -75.3 | - | -75.3 |
| Dividends paid | -174.8 | - | -10.7 | -174.8 | -17.8 |
| Asset disposals & other elements | 0.4 | -3.5 | -8.7 | -3.1 | 16.0 |
| Change in net debt | |||||
| [+decrease, -increase] | -250.6 | -222.7 | -155.1 | -473.3 | -498.7 |
Information
Half-year financial statements at 30 June 2011 and 30 June 2012 are subject to limited audit review.
Full-year financial statements at 31 December 2011 have been audited. Quarterly statements are unaudited and not subject to any review.
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