Summary of 2010 Fourth Quarter Results
(Comparison with third quarter of 2010 and fourth quarter of 2009)
Q4 2010 Q3 2010 Q4 2009
Net sales (US$ million) 2,063.9 2,027.2 2% 1,847.2 12%
Operating income (US$ million) 453.8 405.1 12% 330.6 37%
Net income (US$ million) 321.2 302.7 6% 240.8 33%
Shareholders' net income (US$
million) 320.9 304.8 5% 222.4 44%
Earnings per ADS (US$) 0.54 0.52 5% 0.38 44%
Earnings per share (US$) 0.27 0.26 5% 0.19 44%
EBITDA* (US$ million) 515.5 531.1 (3%) 459.6 12%
EBITDA margin (% of net sales) 25% 26% 25%
*EBITDA is defined as operating income plus depreciation, amortization and
impairment charges/(reversals)
Our sales in the fourth quarter rose 2% sequentially reflecting a limited
recovery in shipments in our Projects operating segment. Shipments and
sales in our Tubes operating segment declined by 1% sequentially but
recorded significant year on year increases, primarily reflecting higher
demand in the USA and Canada. Operating income, which included an
impairment reversal of $67.3 million at our Canadian welded operations,
rose 12% on a sequential basis and 37% year on year. Our net cash position
(total financial debt less cash and other current investments) declined by
US$195.5 million to US$275.6 million at the end of the quarter, following
investments of US$286.1 million in capital expenditures, an increase of
US$152.7 million in working capital and the payment of an interim dividend
of US$153.5 million.
Summary of 2010 Annual Results
Increase/
FY 2010 FY 2009 (Decrease)
Net sales (US$ million) 7,711.6 8,149.3 (5%)
Operating income (US$ million) 1,573.5 1,813.6 (13%)
Net income (US$ million) 1,141.0 1,207.6 (6%)
Shareholders' net income (US$ million) 1,127.4 1,161.6 (3%)
Earnings per ADS (US$) 1.91 1.97 (3%)
Earnings per share (US$) 0.95 0.98 (3%)
EBITDA* (US$ million) 2,013.2 2,318.4 (13%)
EBITDA margin (% of net sales) 26% 28%
*EBITDA is defined as operating income plus depreciation, amortization and
impairment charges/(reversals)
In 2010, shipments in our Tubes operating segment rose 27% year on year led
by a recovery in demand from the USA, Canada and Argentina. Net sales,
however, were flat and our Tubes operating income declined reflecting lower
prices and a mix with a higher proportion of welded and API products.
Shipments, sales and operating income from our Projects operating segment
declined heavily reflecting a strong slowdown in pipeline projects in South
America. Our net cash position declined by US$400.2 million to US$275.6
million at the end of the year, following substantial investments in
capital expenditures amounting to US$847.3 million and increase in working
capital of US$644.0 million. Dividends paid during the year amounted to
US$401 million.
Annual Dividend Proposal
The board of directors proposes, for the approval of the annual general
shareholders' meeting to be
held on June 1, 2011, the payment of an annual dividend of US$0.34 per
share (US$0.68 per ADS), or approximately US$401 million, which includes
the interim dividend of US$0.13 per share (US$0.26 per ADS), or
approximately US$153 million, paid in November, 2010. If the annual
dividend is approved by the shareholders, a dividend of US$0.21 per share
(US$0.42 per ADS), or approximately US$248 million will be paid on June 23,
2011, with an ex-dividend date of June 20, 2011.
Market Background and Outlook
In 2010, global drilling activity recovered led by substantially higher oil
drilling activity in the USA and Canada. US gas drilling activity also
increased driven by investments in shale and liquid rich plays and
production from shale gas reached 23% of total US natural gas production in
2010. In the rest of the world, activity increased in most markets
reflecting increased demand for energy, stable oil prices at attractive
levels and investment in regional gas developments The international rig
count, as published by Baker Hughes, surpassed pre-crisis levels in the
third quarter and has continued to climb steadily since then.
We expect that drilling activity will continue to grow in 2011 led by
increased exploration activity in Eastern Hemisphere markets, more thermal
wells in Canada and higher activity in Iraq.
We estimate that apparent demand for OCTG rose 30% in 2010 compared to 2009
with the most significant increases occurring in the USA, Canada and
Russia. In 2011, we expect that demand will grow further with increases
occurring in most markets. We also expect that growth in demand for premium
products will be higher than that for API products.
We expect that our sales will grow in all our geographical regions in 2011
and that our sales of line pipe, power generation and industrial products
will increase as well as those of our OCTG products. Sales in our Projects
and Others operating segments are also expected to increase. Although our
selling prices are expected to rise, these increases are likely to be
initially offset by increases in raw material and other costs. Accordingly,
we expect that our sales and operating income will increase in 2011,
compared to 2010.
Analysis of 2010 Fourth Quarter Results Sales volume (metric tons) Q4 2010 Q3 2010 Q4 2009 Tubes - Seamless 555,000 581,000 (4%) 487,000 14% Tubes - Welded 221,000 205,000 8% 104,000 113% Tubes - Total 776,000 786,000 (1%) 591,000 31% Projects - Welded 65,000 39,000 67% 63,000 3% Total 841,000 825,000 2% 654,000 29% Tubes Q4 2010 Q3 2010 Q4 2009 (Net sales - $ million) North America 860.2 848.7 1% 563.8 53% South America 271.2 320.7 (15%) 261.8 4% Europe 206.3 161.5 28% 167.1 23% Middle East & Africa 299.6 338.6 (12%) 414.2 (28%) Far East & Oceania 121.8 116.0 5% 93.8 30% Total net sales ($ million) 1,759.1 1,785.5 (1%) 1,500.6 17% Cost of sales (% of sales) 60% 61% 61% Operating income* ($ million) 401.0 367.6 9% 264.7 51% Operating income (% of sales) 23% 21% 18% *Operating income includes impairment reversals of US$67.3 million in Q4 2010Net sales of tubular products and services decreased 1% sequentially due to a decrease in shipments volumes. Year on year, sales increased 17%, as a 31% increase in volumes was partially offset by an 11% decrease in average selling prices. In North America, sales rose sequentially as stable shipments in the USA and Mexico and higher shipments in Canada offset the effect of a less favourable product mix. In South America, sales on a sequential basis were affected by lower shipments to Venezuela. In Europe, sales increased sequentially due to higher demand for mechanical pipe and increased shipments of OCTG products in Romania. In the Middle East and Africa, sales declined sequentially due primarily to lower shipments of line pipe products.
Projects Q4 2010 Q3 2010 Q4 2009 Net sales ($ million) 146.2 95.3 53% 221.2 (34%) Cost of sales (% of sales) 69% 66% 69% Operating income ($ million) 23.6 12.6 87% 54.6 (57%) Operating income (% of sales) 16% 13% 25%Net sales of Projects amounted to US$146.2 million in the fourth quarter of 2010, 53% higher than the third quarter but 34% lower compared to the fourth quarter of 2009. Sequentially, revenues and operating income increased driven by the recovery in shipment volumes.
Others Q4 2010 Q3 2010 Q4 2009 Net sales ($ million) 158.6 146.4 8% 125.5 26% Cost of sales (% of sales) 72% 72% 76% Operating income ($ million) 29.3 24.8 18% 11.3 159% Operating income (% of sales) 18% 17% 9%Net sales of other products and services amounted to US$158.6 million in the fourth quarter of 2010, 8% higher sequentially and 26% higher compared to the fourth quarter of 2009. The sequential increase in sales was mainly due to higher sales at our Brazilian industrial equipment business. Selling, general and administrative expenses, or SG&A, amounted to 19.7% of net sales, equal to the fourth quarter of 2009, but higher than the 18.3% corresponding to the third quarter of 2010. Sequentially, SG&A increased mainly due to seasonal end-of-year charges and to the effect of foreign exchange currencies on fixed and semi-fixed expenses. Other operating income (expense) amounted to a net gain of US$74.8 million in the fourth quarter of 2010, including a gain of US$67.3 million from the reversal of an impairment at our Canadian welded operations. We reversed the impairment registered in 2008, corresponding to Prudential's customer relationships, as our expectations for the economic and competitive conditions of the Canadian oil and gas market have improved compared to those foreseen at the end of 2008. Net interest expenses amounted to US$4.8 million in the fourth quarter of 2010, compared to a net interest income of US$4.0 million in the previous quarter and to net interest expenses of US$16.1 million in the same period of 2009. Sequentially, interest income decreased from US$14.0 million to US$7.4 million, mainly due to lower gains on fair value valuation of investments. Other financial results generated a loss of US$5.4 million during the fourth quarter of 2010, compared to a loss of US$16.2 million during the third quarter of 2010 and a gain of US$3.4 million in the same period of 2009. These results largely reflect gains and losses on net foreign exchange transactions and the fair value of derivative instruments and are to a large extent offset by changes to our net equity position. These gains and losses are mainly attributable to variations in the exchange rates between our subsidiaries' functional currencies (other than the US dollar) and the US dollar in accordance with IFRS. Equity in earnings of associated companies generated a gain of US$11.7 million in the fourth quarter of 2010, compared to a gain of US$15.6 million in the previous quarter and of US$18.8 million in the same period of 2009. These results mainly derived from our equity investment in Ternium. Income tax charges totalled US$134.2 million in the fourth quarter of 2010, equivalent to 30% of income before equity in earnings of associated companies and income tax, compared to 27% in the previous quarter and 30% in the same period of 2009. Income attributable to non-controlling interests amounted to US$0.3 million in the fourth quarter of 2010, compared to losses attributable to non-controlling interests of US$2.1 million in the previous quarter and gains attributable to non-controlling interests of US$18.4 million in the fourth quarter of 2009. These results are mainly derived from non-controlling interests at our Brazilian subsidiary, Confab, and at our Japanese subsidiary, NKKTubes. Cash Flow and Liquidity of 2010 Fourth Quarter Net cash provided by operations during the fourth quarter of 2010 was US$253.8 million, compared to US$122.1 million in the previous quarter and US$417.0 million in the fourth quarter of 2009. Working capital increased by US$152.7 million during the fourth quarter of 2010 ( mainly due to an increase in inventories), compared to an increase of US$427.9 million in the previous quarter and a decrease of US$202.4 million in the fourth quarter of 2009. Capital expenditures amounted to US$286.1 million for the fourth quarter of 2010, compared to US$212.8 million in the previous quarter and US$133.1 million in the fourth quarter of 2009. The increase in the capital expenditures throughout the year is mainly attributable to the construction of the new small diameter rolling mill at our Veracruz facility in Mexico. During the quarter, our net cash position (total financial debt less cash and other current investments) declined by US$195.5 million to US$275.6 million at the end of the quarter, following investments of US$286.1 million in capital expenditures, an increase of US$152.7 million in working capital and the payment of an interim dividend of US$153.5 million.
Analysis of 2010 Annual Results
Increase/
Sales volume (metric tons) FY 2010 FY 2009 (Decrease)
Tubes - Seamless 2,206,000 1,970,000 12%
Tubes - Welded 744,000 346,000 115%
Tubes - Total 2,950,000 2,316,000 27%
Projects - Welded 170,000 334,000 (49%)
Total - Tubes + Projects 3,120,000 2,650,000 18%
Increase/
Tubes FY 2010 FY 2009 (Decrease)
Net sales ($ million)
- North America 3,121.7 2,756.1 13%
- South America 1,110.1 981.9 13%
- Europe 746.6 828.8 (10%)
- Middle East & Africa 1,263.6 1,622.6 (22%)
- Far East & Oceania 434.4 481.5 (10%)
Total net sales 6,676.4 6,670.9 0%
Cost of sales (% of sales) 60% 57%
Operating income ($ million) 1,403.3 1,576.8 (11%)
Operating income (% of sales) 21% 24%
Net sales of tubular products and services amounted to US$6,676.4 million
in 2010, compared to US$6,670.9 million in 2009, as a 27% increase in
shipment volumes was offset by lower average selling prices. In North
America, higher drilling activity in the USA and Canada and a reduction in
US OCTG inventory to more normal level by the end of the first quarter of
2010 led to significantly higher shipments partially offset by lower demand
in Mexico but prices were at lower levels than in 2009. In South America,
higher drilling activity and overall demand in Argentina and Colombia more
than offset a decline in pipe prices. In Europe, lower sales prices and
lower demand in the North Sea region more than offset higher shipments of
mechanical pipe products. In the Middle East and Africa, although shipments
of OCTG products remained stable, sales were affected by lower shipments of
line pipe products and lower selling prices. In the Far East and Oceania,
sales declined due to lower average selling prices.
Cost of sales of tubular products and services, expressed as a percentage
of net sales, rose from 57% to 60%, as the reduction in costs of sales did
not completely offset the reduction in average selling prices.
Operating income from tubular products and services, decreased 11% to
US$1,403.3 million in 2010, from US$1,576.8 million in 2009, (in 2010
operating income included a gain of US$67.3 million from the reversal of an
impairment registered in 2008, on Prudential's customer relationships), as
a 27% increase in shipments volumes was offset by the decrease in gross
margin.
Increase/
Projects FY 2010 FY 2009 (Decrease)
Net sales ($ million) 428.8 986.5 (57%)
Cost of sales (% of sales) 67% 71%
Operating income ($ million) 63.7 208.6 (69%)
Operating income (% of sales) 15% 21%
Net sales of Projects decreased 57% to US$428.8 million in 2010, compared
to US$986.5 million in 2009, reflecting a sharp decrease in shipments to
gas and other pipeline projects in South America.
Operating income from Projects decreased 69% to US$63.7 million in 2010,
from US$208.6 million in 2009, due to the decrease in net sales and a lower
operating margin due to the effect of fixed and semi-fixed general and
administrative expenses on lower sales, including the effect of the
revaluation of the Brazilian real against the U.S. dollar.
Increase/
Others FY 2010 FY 2009 (Decrease)
Net sales ($ million) 606.4 491.8 23%
Cost of sales (% of net sales) 72% 79%
Operating income ($ million) 106.5 28.1 279%
Operating income (% of sales) 18% 6%
Net sales of other products and services increased 23% to US$606.4 million
in 2010, compared to US$491.8 million in 2009, mainly due to higher sales
of sucker rods, welded pipes for electric conduits and industrial equipment
.
Operating income from other products and services, increased 279% to
US$106.5 million in 2010, from US$28.1 million in 2009, due to the increase
in net sales and the improvement in margins.
Selling, general and administrative expenses, or SG&A, increased as a
percentage of net sales to 19.7% in 2010 compared to 18.1% in 2009, mainly
due to the effect of foreign exchange currencies on fixed and semi-fixed
expenses. In absolute terms SG&A increased US$42.1 million to US$1,515.9
million in 2010, from US$1,473.8 million in 2009, mainly due to higher
labor costs affected by the effect of foreign exchange currencies.
Other operating income and expenses resulted in net income of US$78.6
million in 2010, compared to a net income of US$3.0 million in 2009. In
2010, we recorded a gain of US$67.3 million from the reversal of an
impairment at our Canadian welded operations. We reversed the impairment
registered in 2008, corresponding to Prudential's customer relationships,
as our expectations for the economic and competitive conditions of the
Canadian oil and gas market have improved compared to those foreseen at the
end of 2008.
Net interest expenses totalled US$31.2 million in 2010, compared to net
interest expenses of US$87.5 million in 2009, reflecting the change in our
net debt position to a net cash position and lower interest rates.
Other financial results generated a loss of US$21.3 million in 2010,
compared to a loss of US$64.2 million during 2009. These results largely
reflect losses on net foreign exchange transactions and the fair value of
derivative instruments and are to a large extent offset by changes to our
net equity position. These losses are mainly attributable to variations in
the exchange rates between our subsidiaries' functional currencies (other
than the US dollar) and the US dollar in accordance with IFRS.
Equity in earnings of associated companies generated a gain of US$70.1
million in 2010, compared to a gain of US$87.0 million in 2009. These gains
were derived mainly from our equity investment in Ternium.
Income tax charges totalled US$450.0 million in 2010, equivalent to 30% of
income before equity in earnings of associated companies and income tax,
compared to US$513.2 million in 2009, equivalent to 31% of income before
equity in earnings of associated companies and income tax.
Result for discontinued operations amounted to a loss of US$28.1 million in
2009, relating to the discontinuation of Tavsa and Matesi's operations,
while there were no results for discontinued operations in 2010.
Net income decreased to US$1,141.0 million in 2010, compared to US$1,207.6
million in 2009, mainly reflecting lower operating results, better
financial results and lower income taxes.
Income attributable to equity holders was US$1,127.4 million, or US$0.95
per share (US$1.91 per ADS), in 2010, compared to US$1,161.6 million, or
US$0.98 per share (US$1.97 per ADS) in 2009.
Income attributable to non-controlling interest was US$13.7 million in
2010, compared to US$46.0 million in 2009, mainly reflecting lower results
at our Brazilian subsidiary, Confab, and losses at our Japanese subsidiary
NKKTubes.
Cash Flow and Liquidity of 2010
Net cash provided by operations during 2010 was US$870.8 million, compared
to US$3,063.9 million during 2009. Working capital increased by US$644.0
million during 2010, compared with a decrease of US$1,737.3 million in
2009, reflecting the positive change in the levels of activity.
Capital expenditures amounted to US$847.3 million in 2010, compared to
US$460.9 million in 2009. The increase in the capital expenditures is
mainly attributable to the construction of the new small diameter rolling
mill at our Veracruz facility in Mexico.
Dividends paid, including dividends paid to minority shareholders in
subsidiaries, amounted to US$433.3 million in 2010, of which US$248 million
were paid to equity holders in respect of the 2009 fiscal year, while
US$153 million were paid to equity holders in November 2010, as an interim
dividend in respect of the dividend corresponding to the 2010 fiscal year.
This compares to US$553.7 million paid in 2009, of which US$354 million
were paid to equity holders in respect of the 2008 fiscal year, while
US$153 million were paid to equity holders in November 2009, as an interim
dividend for the 2009 fiscal year.
During 2010, total financial debt decreased by US$202.3 million to
US$1,244.5 million at December 31, 2010 from US$1,446.8 million at December
31, 2009. Liquidity (cash and cash equivalents and other current
investments) decreased by US$602.4 million to US$1,520.1 million at
December 31, 2010 from US$2,122.5 million at December 31, 2009. Net cash
during 2010 decreased by US$400.2 million to US$275.6 million at December
31, 2010, from US$675.7 million at December 31, 2009.
Some of the statements contained in this press release are "forward-looking
statements." Forward-looking statements are based on management's current
views and assumptions and involve known and unknown risks that could cause
actual results, performance or events to differ materially from those
expressed or implied by those statements. These risks include but are not
limited to risks arising from uncertainties as to future oil and gas prices
and their impact on investment programs by oil and gas companies.
Consolidated Income Statement
(all amounts in thousands
of U.S. dollars) Three-month period Year ended
ended December 31, December 31,
---------------------- ----------------------
2010 2009 2010 2009
---------- ---------- ---------- ----------
Continuing operations
Net sales 2,063,873 1,847,213 7,711,598 8,149,320
Cost of sales (1,277,755) (1,156,550) (4,700,810) (4,864,922)
---------- ---------- ---------- ----------
Gross profit 786,118 690,663 3,010,788 3,284,398
Selling, general and
administrative expenses (407,072) (363,551) (1,515,870) (1,473,791)
Other operating income
(expenses) 74,772 3,504 78,629 3,000
---------- ---------- ---------- ----------
Operating income 453,818 330,616 1,573,547 1,813,607
Interest income 7,387 7,659 32,855 30,831
Interest expense (12,142) (23,712) (64,103) (118,301)
Other financial results (5,405) 3,413 (21,305) (64,230)
---------- ---------- ---------- ----------
Income before equity in
earnings of associated
companies and income tax 443,658 317,976 1,520,994 1,661,907
Equity in earnings of
associated companies 11,668 18,812 70,057 87,041
---------- ---------- ---------- ----------
Income before income tax 455,326 336,788 1,591,051 1,748,948
Income tax (134,166) (96,036) (450,004) (513,211)
---------- ---------- ---------- ----------
Income for continuing
operations 321,160 240,752 1,141,047 1,235,737
Discontinued operations
Result for discontinued
operations - - - (28,138)
---------- ---------- ---------- ----------
Income for the Year 321,160 240,752 1,141,047 1,207,599
---------- ---------- ---------- ----------
Attributable to:
Equity holders of the
Company 320,908 222,367 1,127,367 1,161,555
Non-controlling interests 252 18,385 13,680 46,044
---------- ---------- ---------- ----------
321,160 240,752 1,141,047 1,207,599
Consolidated Statement of Financial Position
(all amounts in thousands of
U.S. dollars) At December 31, 2010 At December 31, 2009
--------------------- ---------------------
ASSETS
Non-current assets
Property, plant and equipment,
net 3,780,580 3,254,587
Intangible assets, net 3,581,816 3,670,920
Investments in associated
companies 671,855 602,572
Other investments 43,592 34,167
Deferred tax assets 210,523 197,603
Receivables 120,429 8,408,795 101,618 7,861,467
---------- ---------- ---------- ----------
Current assets
Inventories 2,460,384 1,687,059
Receivables and prepayments 282,536 220,124
Current tax assets 249,317 260,280
Trade receivables 1,421,642 1,310,302
Available for sale assets 21,572 21,572
Other investments 676,224 579,675
Cash and cash equivalents 843,861 5,955,536 1,542,829 5,621,841
---------- ---------- ---------- ----------
Total assets 14,364,331 13,483,308
EQUITY
Capital and reserves
attributable to the Company's
equity holders 9,902,359 9,092,164
Non-controlling interests 648,221 628,672
---------- ----------
Total equity 10,550,580 9,720,836
LIABILITIES
Non-current liabilities
Borrowings 220,570 655,181
Deferred tax liabilities 934,226 860,787
Other liabilities 193,209 192,467
Provisions 83,922 80,755
Trade payables 3,278 1,435,205 2,812 1,792,002
---------- ----------
Current liabilities
Borrowings 1,023,926 791,583
Current tax liabilities 207,652 306,539
Other liabilities 233,590 192,190
Provisions 25,101 28,632
Customer advances 70,051 95,107
Trade payables 818,226 2,378,546 556,419 1,970,470
---------- ---------- ---------- ----------
Total liabilities 3,813,751 3,762,472
Total equity and liabilities 14,364,331 13,483,308
Consolidated Statement of Cash Flows
Three-month
period ended Year ended
December 31, December 31,
---------------------- ----------------------
(all amounts in thousands
of U.S. dollars) 2010 2009 2010 2009
---------- ---------- ---------- ----------
Cash flows from operating
activities
Income for the year 321,160 240,752 1,141,047 1,207,599
Adjustments for:
Depreciation and
amortization 129,012 129,014 506,902 504,864
Income tax accruals less
payments 9,563 (112,655) (57,979) (458,086)
Equity in earnings of
associated companies (11,172) (18,812) (70,057) (86,179)
Interest accruals less
payments, net (2,613) (6,210) 17,700 (24,167)
Changes in provisions (5,644) (11,294) (364) (7,268)
Impairment reversal (67,293) - (67,293) -
Changes in working capital (152,658) 202,400 (644,050) 1,737,348
Other, including currency
translation adjustment 33,484 (6,233) 44,914 189,837
---------- ---------- ---------- ----------
Net cash provided by
operating activities 253,839 416,962 870,820 3,063,948
---------- ---------- ---------- ----------
Cash flows from investing
activities
Capital expenditures (286,098) (133,132) (847,316) (460,927)
Acquisitions of
subsidiaries and
associated companies (302) (20) (302) (64,029)
Proceeds from disposal of
property, plant and
equipment and intangible
assets 2,329 4,306 9,290 16,310
Dividends and distributions
received from associated
companies 302 2,517 14,034 11,420
Investments in short terms
securities (34,226) (50,814) (96,549) (533,812)
---------- ---------- ---------- ----------
Net cash used in investing
activities (317,995) (177,143) (920,843) (1,031,038)
---------- ---------- ---------- ----------
Cash flows from financing
activities
Acquisitions of
non-controlling interests (57) - (3,018) (9,555)
Dividends paid (153,470) (153,470) (401,383) (507,631)
Dividends paid to
non-controlling interest
in subsidiaries (12,862) (13,388) (31,881) (46,086)
Proceeds from borrowings 277,890 121,742 647,608 631,544
Repayments of borrowings (129,053) (392,752) (862,921) (2,096,925)
---------- ---------- ---------- ----------
Net cash used in financing
activities (17,552) (437,868) (651,595) (2,028,653)
---------- ---------- ---------- ----------
(Decrease) increase in cash
and cash equivalents (81,708) (198,049) (701,618) 4,257
Movement in cash and cash
equivalents
At the beginning of the
period 900,769 1,733,420 1,528,707 1,525,022
Effect of exchange rate
changes 1,104 (6,664) (6,924) 9,124
Decrease in cash due to
deconsolidation - - - (9,696)
(Decrease) increase in cash
and cash equivalents (81,708) (198,049) (701,618) 4,257
At December 31, 820,165 1,528,707 820,165 1,528,707
Cash and cash equivalents At December 31, At December 31,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Cash at banks, liquidity
funds and short-term
investments 843,861 1,542,829 843,861 1,542,829
Bank overdrafts (23,696) (14,122) (23,696) (14,122)
820,165 1,528,707 820,165 1,528,707
Contact Information: Giovanni Sardagna Tenaris 1-888-300-5432 www.tenaris.com