LUXEMBOURG -- (Marketwire) -- 11/07/12 -- Tenaris S.A. (NYSE: TS) (BAE: TS) (BVM: TS) (MILAN: TEN) ("Tenaris") today announced its results for the quarter and nine months ended September 30, 2012 with comparison to its results for the quarter and nine months ended September 30, 2011.
Summary of 2012 Third Quarter Results(Comparison with second quarter of 2012 and third quarter of 2011) Q3 2012 Q2 2012 Q3 2011Net sales (US$ million) 2,657.1 2,801.5 (5%) 2,494.8 7%Operating income (US$ million) 583.6 620.9 (6%) 468.6 25%Net income (US$ million) 437.5 460.2 (5%) 365.5 20%Shareholders' net income (US$ million) 436.4 461.1 (5%) 325.0 34%Earnings per ADS (US$) 0.74 0.78 (5%) 0.55 34%Earnings per share (US$) 0.37 0.39 (5%) 0.28 34%EBITDA* (US$ million) 679.0 758.6 (10%) 603.6 12%EBITDA margin (% of net sales) 26% 27% 24%*EBITDA is defined as operating income plus depreciation, amortization and impairment charges/(reversals) and in Q3 2012 excludes a non-recurring gain of $49 million, recorded in Other operating income corresponding to a tax related lawsuit collected in Brazil.
Sales increased year on year led by higher demand in North and South America, but, sequentially, they were affected by lower shipments to the Middle East and lower demand for industrial products in Europe, in addition to seasonal factors.
EBITDA, excluding extraordinary items, declined 10% sequentially with margins being affected by product mix (a lower proportion of seamless products in the sales mix) and efficiency losses related to operational issues at the Tamsa steel shop and plant maintenance shutdowns.
Cash flow from operations remains strong and amounted to US$491.4 million for the quarter. Our net debt (total borrowings less cash and other current investments) decreased to US$265.8 million, at the end of the third quarter of 2012, from US$540.5 million at the end of the previous quarter.
Interim Dividend Payment
Our board of directors approved the payment of an interim dividend of US$0.13 per share (US$0.26 per ADS), or approximately US$153 million. The payment date will be November 22, 2012 (however, because such date is not a business day in the U.S., shareholders in all jurisdictions may receive their interim dividend on or after November 23, 2012, which is the first business day following the stated payment date), and the ex-dividend date will be November 19, 2012.
Changes in Segment Reporting
Following the acquisition of the non-controlling interests in Confab Industrial S.A. (Confab) and its further delisting, we have changed our internal organization and therefore combined the Tubes and Projects segments.
Therefore, starting with the financial statements for the period ended September 30, 2012, we will report under segments: Tubes (tubular products and services) and Others (other products and services).