MRC Global Announces 3Q Results

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MRC Global Inc., global distributor of pipe, valves and fittings and infrastructure products and services to diversified end markets, announced third quarter 2021 results.

The company’s sales were $685 million for the third quarter of 2021, which was consistent with the second quarter of 2021 but 17% higher than the third quarter of 2020. Sequentially, the U.S. segment experienced modest growth led by the downstream, industrial and energy transition (DIET) sector offset by the International segment, which declined due to delayed maintenance, repairs and operations (MRO) and project activity. As compared to the third quarter of 2020, broad economic recovery drove improvement in sales across all sectors.

Net loss attributable to common stockholders for the third quarter of 2021 was ($17) million, or ($0.21) per diluted share, as compared to the third quarter of 2020 net loss of ($3) million, or ($0.04) per diluted share.

Rob Saltiel, MRC Global’s president and chief executive officer stated, “Our third quarter results reflect solid execution and good cost control as we achieved adjusted EBITDA margins of 5.7%, the highest for our company in two years. Our U.S. business grew 2% sequentially while our International segment experienced revenue declines due to delayed MRO and project activity. We expect double-digit revenue growth next year based on our growing backlog and increased customer activity.”

MRC Global’s third quarter of 2021 gross profit was $95 million, or 13.9% of sales, as compared to the third quarter of 2020 gross profit of $114 million, or 19.5% of sales. Gross profit for the third quarter of 2021 includes $32 million of expense in cost of sales relating to the use of the last-in, first-out (LIFO) method of inventory cost accounting as compared to the third quarter of 2020, which reduced cost of sales by $11 million. Adjusted gross profit, which excludes the impact of LIFO was $137 million, or 20.0% of revenue, for the third quarter of 2021 and was $115 million, or 19.7% of revenue, for the third quarter of 2020. The entire press release from MRC Global is here.