Luxembourg-based steelmaker Tenaris, which operates mills and pipe-making plants in Argentina, Mexico, Europe, North America and Asia, reports sales rose 2 percent in the second quarter of 2019. The steelmaker says higher sales in Mexico and various markets “compensated for a seasonal decline in sales in Canada.”
Operating income declined 9 percent due to the $15 million tariff recovery recorded in the previous quarter and “higher maintenance costs” associated with a major overhaul of facilities in Mexico, the company says.
The company also notes that effective Aug. 5, Alicia Mondolo will assume the position of chief financial officer, replacing Edgardo Carlos.
In a market outlook, Tenaris says drilling activity in the U.S. has “slowed down” while drilling activity in Latin American is expected to remain at current levels until the end of the year amid uncertainty about elections in Argentina and the financial position of Pemex.
The company says sales in the first half of 2019 increased while volumes sold decreased 6 percent and selling prices increased 10 percent. In the third quarter of 2019, sales will be affected by lower average selling prices, seasonal factors and the impact of major maintenance stoppages amplified by the triennial intervention in Mexico, before recovering in the fourth quarter of 2019, the company says.