Posted October 30, 2020

MRC Global sales fall 38 percent

MRC Global's third-quarter sales of $585 million fell by 38 percent compared to $942 million in the third quarter of 2019.

Third-quarter sales were 3 percent lower than in the second quarter.

Sequentially, the downstream and industrial and the gas utilities sectors each experienced an increase in sales while the upstream production and the midstream pipeline sectors each experienced a decline. As compared to the third quarter of 2019, the decrease was across all sectors and segments as the impact of the COVID-19 pandemic and lower commodity prices significantly reduced customer spending.

A net loss $3 million, or 4 cents per diluted share, compared to third-quarter 2019 net income of $15 million, or 18 cents.

"The resiliency of our business model, which focuses on diversified sectors, was evident this quarter. Two of our sectors, gas utilities and downstream and industrial, which make-up 68 percent of our third quarter revenue, were both up sequentially. As a result, total revenue was down only 3 percent sequentially this quarter, better than expectations," said Andrew R. Lane, president and chief executive officer. "In September, e-commerce revenue as a percentage of North America revenue reached 48 percent, an all-time high for our company as we continue to invest in this technology platform. We continue to focus on managing the business through these difficult market conditions by aggressively reducing costs, generating cash and reducing debt."