Vallourec 4Q Net Profit Rises 8.3%; Sees 2012 Revenue +10%

French steel-pipe maker Vallourec SA (VK.FR) Wednesday reported a 8.3% rise in fourth quarter profit and said its sales will grow around 10% in 2012, although its earnings margin will be below 2011.

MAIN FACTS:

- Fourth quarter net profit rose to EUR117 million from EUR108 million in the fourth quarter of 2010.

- Revenue in the fourth quarter of 2011 rose to EUR1.55 billion from EUR1.3 billion on year.

- "We benefited from a positive environment across most of our markets, notably for Oil & Gas and for Mechanical sales," said Philippe Crouzet, chairman of the management board.

- Vallourec expects its sales to grow by approximately 10% in 2012, although global economic uncertainties will affect its business and contribute to a weak performance in the first quarter, the company said.

- Starting up of new plants in Brazil and the U.S. will generate sales, but their net contribution to Earnings Before Interest, Tax, Depreciation and Amortization will be negative. Vallourec expects therefore its EBITDA margin in 2012 to be below that of 2011.

- Vallourec also said it will pay a EUR1.3 dividend for the financial year of 2011, the same as last year. The dividend corresponds to 39.3% of net profit in 2011.

- By Paris Bureau, Dow Jones Newswires; [phone]; [e-mail]