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LUXEMBOURG -- (Marketwire) -- 02/21/13 -- 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, 2012 with comparison to its results for the fourth quarter and year ended December 31, 2011.
Summary of 2012 Fourth Quarter Results(Comparison with third quarter of 2012 and fourth quarter of 2011) Q4 2012 Q3 2012 Q4 2011Net sales ($ million) 2,758.1 2,657.1 4% 2,750.6 0%Operating income(1) ($ million) 586.0 583.6 0% 538.0 9%Net income ($ million) 350.3 437.5 (20%) 426.3 (18%)Shareholders' net income ($ million) 357.7 436.4 (18%) 399.6 (10%)Earnings per ADS ($) 0.61 0.74 (18%) 0.68 (10%)Earnings per share ($) 0.30 0.37 (18%) 0.34 (10%)EBITDA* ($ million) 733.0 679.0 8% 691.9 6%EBITDA margin (% of net sales) 27% 26% 25%
*EBITDA is defined as operating income plus depreciation, amortization and impairment charges/(reversals) and
in Q3 2012 excludes a non-recurring gain of $49.2 million, recorded in Other operating income corresponding to a tax related lawsuit collected in Brazil.
(1) Comparative amounts for 2011 have been reclassified to conform to changes in the accounting of our Mexican employee statutory profit sharing provision, which since January 1, 2012 is included under labor costs instead of recording it in the income tax line.
Our sales in the fourth quarter rose 4% sequentially as a recovery in OCTG shipments to the Middle East and higher sales of line pipe in Brazil more than offset lower sales in the USA. EBITDA and operating income margins recovered on product mix and efficiency improvements. Earnings per share, however, were affected by an impairment provision taken on our investment in Usiminas.
Net cash provided by operations during the quarter declined to $346.6 million reflecting an increase in working capital (mainly a high level of trade receivables associated with our December shipments). Our net debt (total borrowings less cash and other current investments) increased by $5.5 million to end the year at $271.3 million, following investment of $201.8 million in capital expenditures and the payment of an interim dividend to shareholders of $153.5 million.
Summary of 2012 Annual Results Increase / FY 2012 FY 2011 (Decrease)Net sales ($ million) 10,834.0 9,972.5 9%Operating income ($ million) 2,356.6 1,844.9 28%Net income ($ million) 1,701.4 1,420.7 20%Shareholders' net income ($ million) 1,699.1 1,331.2 28%Earnings per ADS ($) 2.88 2.26 28%Earnings per share ($) 1.44 1.13 28%EBITDA* ($ million) 2,875.1 2,399.2 20%EBITDA margin (% of net sales) 27% 24%
