LUXEMBOURG -- (Marketwire) -- 02/23/12 -- Tenaris S.A. (NYSE: TS) (BAE: TS) (BVM: TS) (MILAN: TEN) ("Tenaris") today announced its results for the fourth quarter and year ended December 31, 2011 with comparison to its results for the fourth quarter and year ended December 31, 2010.
Summary of 2011 Fourth Quarter Results
(Comparison with third quarter of 2011 and fourth quarter of 2010)
Q4 2011 Q3 2011 Q4 2010Net sales (US$ million) 2,750.6 2,494.8 10% 2,063.9 33%Operating income (US$ million) 555.7 485.3 15% 453.8 22%Net income (US$ million) 426.3 365.5 17% 321.2 33%Shareholders' net income (US$ million) 399.6 325.0 23% 320.9 25%Earnings per ADS (US$) 0.68 0.55 23% 0.54 25%Earnings per share (US$) 0.34 0.28 23% 0.27 25%EBITDA* (US$ million) 709.6 620.3 14% 515.5 38%EBITDA margin (% of net sales) 26% 25% 25%*EBITDA is defined as operating income plus depreciation, amortization and impairment charges/(reversals)
Our sales in the fourth quarter rose 10% sequentially reflecting an increase in shipments not only for OCTG products but also for line pipe and mechanical pipe products. EBITDA and operating income margins benefited from higher efficiencies in fixed costs resulting from the increase in shipments. Our net cash position (cash and other current investments less total borrowings) rose by US$96 million to end the year at US$324 million, following investment of US$189 million in capital expenditures and the payment of an interim dividend to shareholders of US$153 million.
Summary of 2011 Annual Results
Increase/ FY 2011 FY 2010 (Decrease)Net sales (US$ million) 9,972.5 7,711.6 29%Operating income (US$ million) 1,894.8 1,573.5 20%Net income (US$ million) 1,420.7 1,141.0 25%Shareholders' net income (US$ million) 1,331.2 1,127.4 18%Earnings per ADS (US$) 2.26 1.91 18%Earnings per share (US$) 1.13 0.95 18%EBITDA* (US$ million) 2,449.1 2,013.2 22%EBITDA margin (% of net sales) 25% 26%*EBITDA is defined as operating income plus depreciation, amortization and impairment charges/(reversals)
In 2011, net sales increased by 29% compared to 2010 with increases in each of our operating segments. Increased oil and gas drilling activity in North America and most regions except for North Africa led to higher shipments in our Tubes operating segment. Higher demand for our premium OCTG products led to improvements in product mix and average selling prices, particularly in the second half. Sales in our Projects and Others operating segments benefited from higher demand in Brazil. EBITDA and operating margins were affected by higher raw material and fixed costs in the first half but recovered in the second half. Our net cash position increased by US$48 million to US$324 million at the end of the year. Capital expenditures amounted to US$863 million, including the completion of our new rolling mill in Mexico, and investments in working capital amounted to US$646 million.