Nov. 29 (Bloomberg) -- OAO TMK, Russia’s largest maker of steel pipes for the oil and gas industry, reported a 38 percent drop in third-quarter profit and cut its full-year sales volume target as growth in larger-diameter products sales slows.
Net income fell to $21 million in the three months ended Sept. 30, from $34 million a year earlier, TMK said in a statement today. That missed the $57 million estimate by nine analysts in a Bloomberg survey. Sales rose 18 percent to $1.6 billion.
Sales volumes will probably increase by 5 percent this year, down from the 7 percent to 8 percent forecast previously, Moscow-based TMK said. Demand in 2012 for large-diameter pipes in Russia and former Soviet republics is “uncertain,” it said.
“The biggest miss has come from the U.S. market,” where earnings before interest, taxes, depreciation and amortization dropped 40 percent to 50 percent, Olga Danilenko, an analyst at VTB Capital in Moscow, said in a note.
TMK global depositary receipts were unchanged in London trading at $10.61 at 3:40 p.m. The benchmark FTSE 100 Index was 0.1 percent higher.
TMK, controlled by billionaire Chairman Dmitry Pumpyansky, is struggling to reduce $3.6 billion in debt stemming from the acquisition of Ipsco Inc.’s mills in the U.S. in 2008. TMK plans to further reduce its leverage and optimize its debt profile, the company said in a presentation today.
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