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Gold/Mining/Energy : maverick (MAVK) -- Ignore unavailable to you. Want to Upgrade?

To: Steve Rolfe who wrote (187)	4/16/1998 8:56:00 AM
From: JakeStraw	Read Replies (1) \| Respond to of 432

Maverick Tube Corporation Reports Second Quarter 1998 Results ST. LOUIS, April 16 /PRNewswire/ -- Maverick Tube Corporation (Nasdaq: MAVK - news) announced today its results for the quarter and six months ended March 31, 1998. The Company reported net income during the quarter of $4.7 million or $0.30 per share, up from the profit reported in the same quarter last year of $3.0 million or $0.19 per share. For the first six months of fiscal 1998, profits were $11.3 million or $0.72 per share, up from the profit the previous year of $5.6 million, or $0.37 per share. Net sales were $70.5 million and $157 million, for the quarter and year to date, up from $66.9 million and $131 million for the same periods the year before. Total revenues during the second quarter from the Company's energy related product lines were generally flat compared to the same quarter of fiscal 1997, with the benefit of higher selling prices being offset by an 8% decline in shipments. Drilling rates in the United States during the quarter were up 13% in comparison to the previous year while drilling increased by 19% in Canada. Second quarter revenues from industrial products increased by 20% compared to the same quarter last year due to higher demand. Gregg Eisenberg, President and CEO said, ''We were generally pleased with our results for the second quarter, considering that demand for our energy related products tapered off due to less customer purchasing for inventories, which offset a nice increase in consumption. Customers have been very cautious in their purchases for inventories during this recent environment of lower oil prices. Although our product prices were level, they remain about 5% above last year, and our mix was a little richer. We were also helped by 5% lower steel costs during the quarter. Our industrial product business performed very well during the quarter, contributing 31% of our gross profit.'' Eisenberg went on to say, ''Looking ahead, there is still concern about the impact on drilling plans due to oil prices that are about 30% below last year. Total drilling activity currently is down by 11% since the first of the year, with oil related drilling down by 19%. I remain optimistic regarding the long-term fundamentals of our business, particularly for natural gas related demand.'' Maverick Tube Corporation is a St. Louis, Missouri based manufacturer of tubular products used in the energy industry in drilling, production and surface transportation applications as well as industrial tubing products (HSS and standard pipe) used in various industrial applications. This news release contains forward looking information with respect to Maverick's operations and beliefs. Actual results may differ from these forward looking statements due to numerous factors