FORM 6 - K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Report of Foreign Private Issuer
Pursuant to Rule 13a - 16 or 15d - 16 of
the Securities Exchange Act of 1934
As of November 14, 2003
TENARIS, S.A.
(Translation of Registrant's name into English)
TENARIS, S.A.
13, rue Beaumont
L-1219 Luxembourg
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual
reports under cover Form 20-F or 40-F.
Form 20-F X Form 40-F
--- ---
Indicate by check mark whether the registrant by furnishing the information
contained in this Form is also thereby furnishing the information to the
Commission pursuant to Rule 12G3-2(b) under the Securities Exchange Act of 1934.
Yes No X
--- ---
If "Yes" is marked, indicate below the file number assigned to the registrant in
connection with Rule 12g3-2(b): 82- .
The attached material is being furnished to the Securities and Exchange
Commission pursuant to Rule 13a-16 and Form 6-K under the Securities Exchange
Act of 1934, as amended. This report contains Tenaris's press release announcing
its results corresponding to the third quarter of 2003
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
Date: November 14, 2003
Tenaris, S.A.
By: /s/ Cecilia Bilesio
------------------------
Cecilia Bilesio
Corporate Secretary
Tenaris Announces Third Quarter 2003 Results
LUXEMBOURG--(BUSINESS WIRE)--Nov. 10, 2003--Tenaris S.A. (NYSE:TS)
(Buenos Aires:TS) (BMV:TS) (MTA Italy:TEN)
The financial and operational information contained in this press
release is based on unaudited consolidated condensed interim financial
statements prepared in accordance with international accounting
standards (IAS) and presented in U.S. dollars.
Tenaris S.A. (NYSE:TS) (Buenos Aires:TS) (BMV:TS) (MTA Italy:TEN)
("Tenaris") today announced its results for the fiscal quarter and
nine months ended September 30, 2003, with comparison to its results
for the fiscal quarter and nine months ended September 30, 2002.
Third Quarter Summary
-- Net sales of US$759.6 million, up 5.4% from US$721.0 million
-- Operating income of US$109.2 million, up 28.1% from US$85.3
million
-- Net income of US$61.4 million, up from US$24.5 million
-- Net earnings per share of US$0.053 (US$0.53 per ADS)
Net sales, operating income and net income for the third quarter
were all higher than the comparable results for the corresponding
quarter of 2002. Increased sales and margins in our core seamless
business, achieved in spite of increasing raw material and energy
costs, more than compensated for reduced sales of welded pipes. The
improvement in seamless margins was due in part to operating synergies
following last year's exchange offer and the recent completion of the
delisting of Tenaris' principal Argentine, Italian and Mexican
subsidiaries. Operating income, as a percentage of net sales was
14.4%, and operating income plus depreciation and amortization was
US$156.7 million, or 20.6% of net sales.
Market Background
Demand for Tenaris' seamless pipes during the third quarter of
2003 showed an increase on the level recorded in the corresponding
quarter of 2002 but was lower than the level recorded in the second
quarter in 2003. This reflected the impact of seasonal fluctuations in
the European market, continuing political and security risks in the
Middle East and Africa region and lower sales in the Far East and
Oceania region. Demand has been increasing in the North and South
American regions with Tenaris' local markets of Mexico and Argentina
leading the increase. Sales volume in North America is up 36% in the
year to date over the corresponding period of last year. However, high
levels of oil and gas prices have not resulted in a significant
increase in global oil and gas drilling activity outside of North
America due to factors such as the political and security risks in
countries with high reactivation and development potential, caution
over the future outlook for oil prices and OPEC production restraint.
At the same time, there remains no increase in demand from the
industrial sector in Europe. Demand for seamless pipes in the final
quarter of 2003 remains stable and it is likely that Tenaris will
complete the year showing a small increase in seamless pipe sales
volume over that recorded in 2002.
Demand for Tenaris' welded pipes during the year to date has been
concentrated in the local Brazilian market and remains substantially
below the levels recorded last year due to a lack of demand in other
markets. During the quarter, welded pipe demand was further affected
by the postponement of deliveries to current projects as well as the
postponement of future projects. This situation is likely to continue
for the rest of this year.
Costs in Tenaris' seamless pipes business have been affected this
year, in comparison to last year, by increases in the cost of raw
materials and energy. Raw material costs are continuing to rise and,
as Tenaris uses the first in-first out method for inventory cost
accounting, the full effect of the current raw material cost increases
has not yet been reflected in Tenaris' results. During the third
quarter, costs were further affected by the appreciation of the
Argentine peso and the Euro against the U.S. dollar, up 22% and 14%,
respectively, from the corresponding quarter of 2002, although the
impact of the appreciation of the Euro on margins was mitigated by
increased prices in U.S. dollar terms on sales in Europe.
Significant Developments
During September 2003, Tenaris completed its exchange offer for
the remaining ADSs and shares of its Mexican subsidiary, Tamsa, that
it did not already own. Tenaris now owns 99.9% of Tamsa, which has
been delisted from the American and Mexican stock exchanges, and has a
total of 1,180,287,644 shares issued and outstanding.
Also during September 2003, the board of directors of Tenaris
elected Paolo Rocca to serve as its chairman, whose position had been
vacant following the passing of Roberto Rocca in June 2003. Paolo
Rocca also serves as our chief executive officer.
Third Quarter Results
Net income for the quarter ended September 30, 2003, was US$61.4
million, or US$0.053 per share (US$0.53 per ADS), or 8.1% as a
percentage of net sales. This compares to net income of US$24.5
million, or US$48.6 million before minority interest attributable to
participations acquired in last year's exchange offer, for the
corresponding quarter of 2002.
(metric tons)
Sales volume Q3 2003 Q3 2002 Increase/(Decrease)
----------------------------- --------- --------- -------------------
South America 88,000 90,000 (2%)
North America 157,000 144,000 9%
Europe 140,000 134,000 4%
Middle East & Africa 99,000 72,000 38%
Far East & Oceania 67,000 94,000 (29%)
Total seamless pipes 551,000 534,000 3%
Welded pipes 78,000 131,000 (40%)
Total steel pipes 629,000 665,000 (6%)
Sales volume of seamless pipes increased by 3% to 551,000 tons in
the third quarter of 2003 from 534,000 tons in the same period of
2002. Sales volume in North America increased by 9% due primarily to
increased demand from the oil and gas sector in Mexico. The increase
in sales volume in the Middle East and Africa offset the decline in
sales volume to the Far East and Oceania.
Sales volume of welded pipes decreased by 40% to 78,000 tons in
the third quarter of 2003 from 131,000 tons in the same period of
2002. Demand from the local Brazilian market, which was also affected
by the postponement of some deliveries, was not sufficient to offset
the lack of demand from other markets following the termination of
deliveries made in 2002 to major gas pipeline projects in Ecuador and
Peru.
(US$ million)
Net sales Q3 2003 Q3 2002 Increase/(Decrease)
----------------------------- --------- --------- -------------------
Seamless pipes 579.7 503.7 15%
Welded pipes 83.4 143.2 (42%)
Energy 79.5 45.8 74%
Others 17.1 28.3 (40%)
Total 759.6 721.0 5%
Net sales in the quarter ended September 30, 2003, increased 5% to
US$759.6 million, compared to US$721.0 million in the corresponding
quarter of 2002. Net sales of seamless pipes rose by 15%, due to
higher average selling prices and an increase in sales volume. The
increase in average selling prices, which were effectively unchanged
from the second quarter, primarily reflected higher prices in Europe
following the appreciation of the Euro and changes in product and
market mix. Net sales of welded pipes decreased 42%, reflecting the
decline in sales volume and lower average selling prices resulting
from variations in selling conditions and the sales mix. Net sales of
welded pipes included US$16.2 million corresponding to sales of metal
structures made by Tenaris' Brazilian welded pipe subsidiary compared
to US$17.0 million in the corresponding quarter of 2002. Net sales of
electricity and natural gas by Dalmine Energie increased by 74%,
reflecting the continuing expansion of the business and the increase
in the value of the Euro against the U.S. dollar. Net sales of other
goods and services decreased 40% reflecting the discontinuation of
sales of other steel products.
Cost of sales, expressed as a percentage of net sales, decreased
0.9 percentage points to 67.0% in the third quarter of 2003, compared
to 67.9% in the same period of 2002. This results from an improvement
in margins in our core seamless business as well as the
discontinuation of sales of low-margin other steel products, which
more than offset reduced gross margins on sales of welded pipe
products. Cost of sales for seamless pipe products, expressed as a
percentage of net sales, decreased 5.6 percentage points to 60.4% in
the third quarter of 2003 compared to 66.0% in the same period of
2002. This improvement resulted from a particularly favorable product
and market mix for the quarter and increased production, as a
percentage of total production, at our highly integrated Argentine
facility. Cost of sales for welded pipe products, expressed as a
percentage of net sales, increased 24.9 percentage points to 87.0% in
the third quarter of 2003, compared to 62.1% in the same period of
2002 due primarily to a substantial reduction in export sales, whose
sales prices include a component associated with the higher selling
expenses and different delivery conditions associated with exports,
the cost of which is recorded in selling, general and administrative
expenses, and a contraction in demand for metal structures resulting
in negative margins on sales of this product. Cost of sales for energy
products, expressed as a percentage of net sales, decreased 1.4
percentage points to 95.6% in the third quarter of 2003, compared to
94.2% in the same period of 2002. Cost of sales for other products,
expressed as a percentage of net sales, decreased 18.8 percentage
points to 67.0% in the third quarter of 2003, compared to 85.8% in the
same period of 2002, reflecting the discontinuation of sales of
low-margin other steel products.
Selling, general and administrative expenses, or SG&A, decreased
to US$139.8 million, or 18.4% of net sales in the quarter ended
September 30, 2003, compared to US$156.4 million, or 21.7% of net
sales, during the corresponding quarter of 2002. This decrease was
principally due to a reduction in selling expenses reflecting
substantially reduced exports of welded pipes. General and
administrative expenses increased due to higher costs in Argentina and
Italy reflecting the revaluation of the Argentine peso and the Euro
against the U.S. dollar and additional taxes in Argentina.
Other operating income and expenses showed a net loss of US$1.7
million in the third quarter of 2003 compared to a net gain of US$9.9
million in the third quarter of 2002.
Net financial expenses totaled US$3.0 million in the third
quarter of 2003, compared to net financial income of US$7.8 million in
the same period of 2002. The change in position results primarily from
the non-recurrence of net foreign exchange translation gains of
US$11.6 million which occurred in the third quarter of 2002.
Results of associated companies generated a gain of US$10.6
million in the third quarter of 2003, compared to a gain of US$1.0
million in the third quarter of 2002. The gain of US$10.6 million
results from Tenaris' indirect investment in Sidor. Following the
financial restructuring of Sidor concluded in June 2003, Tenaris,
through its investment in Ylopa, is entitled to receive a portion of
Sidor's cash generation in excess of its operating, financial and
capital investment requirements. Tenaris recorded a gain of US$10.5
million during this quarter corresponding to its portion of Sidor's
excess cash generated during the first semester of 2003.
Income tax provisions of US$53.4 million were recorded during the
third quarter of 2003, compared to income tax provisions of US$37.9
million during the corresponding quarter of 2002. The increase in the
tax charge primarily reflects the effect of the 4% depreciation of the
Argentine peso against the U.S. dollar during the quarter on income
tax provisions recorded by Tenaris' subsidiaries in Argentina in
relation to gains, in local currency terms, on foreign
currency-denominated monetary assets and to the tax base of their
non-monetary assets.
Nine Months Results
Results for the nine-month period ended September 30, 2003, with
comparison to the results for the corresponding period of 2002.
Net income during the nine months was US$196.6 million, or
US$0.169 per share (US$1.69 per ADS), or 8.1% of net sales, which
compares with net income during the first nine months of 2002 of
US$41.7 million, or US$106.8 million before minority interest
attributable to participations acquired in last year's exchange offer.
Operating income was US$320.3 million, or 13.2% of net sales, compared
to US$359.0 million, or 15.2% of net sales. Operating income plus
depreciation and amortization was US$466.2 million, or 19.3% of net
sales, compared to US$487.6 million, or 20.7% of net sales. The
improvement in comparable net income was due primarily to reduced
income tax provisions.
(metric tons)
Sales volume 9M 2003 9M 2002 Increase/(Decrease)
--------------------------- ---------- ---------- -------------------
South America 231,000 228,000 1%
North America 444,000 326,000 36%
Europe 472,000 487,000 (3%)
Middle East & Africa 300,000 365,000 (18%)
Far East & Oceania 286,000 302,000 (5%)
Total seamless pipes 1,731,000 1,709,000 1%
Welded pipes 316,000 429,000 (26%)
Total steel pipes 2,048,000 2,138,000 (4%)
Sales volume of seamless pipes increased by 1% to 1,731,000 tons
in the first nine months of 2003 from 1,709,000 tons in the same
period of 2002. Sales volume in South America rose by 1%, reflecting
increased demand from the oil sector in Argentina and reduced sales in
Venezuela following a national strike centered on the state-owned oil
industry. Sales volume in North America increased by 36% due to a
sustained increase in demand from the oil and gas sector in Mexico and
increased sales in the U.S.A. and Canada. Sales volume in Europe
decreased by 3% due primarily to reduced demand from the industrial
sector. Sales volume in the Middle East and Africa decreased by 18%
due primarily to increased security and other risks surrounding the
U.S.-led military invasion of Iraq and political and security risks
affecting oil and gas activities in Nigeria. Sales volume in the Far
East and Oceania fell by 5%.
Sales volume of welded pipes decreased by 26% to 316,000 tons in
the first nine months of 2003 from 429,000 tons in the same period of
2002. Increased demand from the local Brazilian market was not
sufficient to offset the decline in demand from other markets
following the termination of deliveries made in 2002 to major gas
pipeline projects in Ecuador and Peru.
(US$ million)
Net sales 9M 2003 9M 2002 Increase/(Decrease)
----------------------------- --------- --------- -------------------
Seamless pipes 1,782.7 1,654.8 8%
Welded pipes 299.7 445.2 (33%)
Energy 234.0 145.1 61%
Others 101.7 115.2 (12%)
Total 2,418.1 2,360.4 2%
Net sales in the nine months ended September 30, 2003, increased
2% to US$2,418.1 million, compared to US$2,360.4 million in the
corresponding period of 2002. Excluding sales of discontinued other
steel products, net sales increased 4% to US$2,369.6 million, compared
to US$2,279.2 million. Net sales of seamless pipes rose by 8% due to
higher average selling prices and slightly higher sales volume, the
former resulting from higher prices in Europe following the
appreciation of the Euro and a more favorable product and market mix.
Net sales of welded pipes decreased 33% as sales volume and average
selling prices of welded pipes and sales of metal structures made by
Tenaris' Brazilian welded pipe subsidiary (down to US$46.3 million
from US$71.4 million) all decreased. Net sales of electricity and
natural gas by Dalmine Energie increased by 61% reflecting the
continuing expansion of the business and the increase in the value of
the Euro against the U.S. dollar. Net sales of other goods and
services, excluding sales of other steel products which have been
discontinued, rose 118% to US$53.2 million in the first nine months of
2003, compared to US$24.4 million in the corresponding period of 2002
due primarily to increased sales of sucker rods and the commencement
of sales of steam and electric power to third parties from the
Argentine power generation facility acquired in February 2003.
Cost of sales, expressed as a percentage of net sales, increased
2.3 percentage points to 69.1% in the first nine months of 2003,
compared to 66.8% in the same period of 2002. This increase resulted
from higher cost of sales for welded pipe products and higher sales of
low-margin energy products. Cost of sales for seamless pipe products,
expressed as a percentage of net sales, remained stable at 63.6% in
the first nine months of 2003, the same level as in the corresponding
period of 2002. Higher average selling prices and increased
production, as a percentage of total production, at our highly
integrated Argentine facility has so far been sufficient to offset the
impact of rising raw material and energy costs. Cost of sales for
welded pipe products, expressed as a percentage of net sales,
increased 13.7 percentage points to 77.1% in the first nine months of
2003, compared to 63.4% in the same period of 2002 due primarily to a
substantial reduction in export sales, whose sales prices include a
component associated with the higher selling expenses and different
delivery conditions associated with exports, the cost of which is
recorded in selling, general and administrative expenses, and a
contraction in demand for metal structures resulting in negative
margins on sales of this product. Cost of sales for energy products,
expressed as a percentage of net sales, increased 2.6 percentage
points to 96.1% in the first nine months of 2003, compared to 93.5% in
the corresponding period of 2002, reflecting increased competition
resulting from the maturing of the energy trading business in Italy.
Cost of sales for other products, expressed as a percentage of net
sales, decreased 11.1 percentage points to 79.8% in the first nine
months of 2003, compared to 90.9% in the same period of 2002, due to
reduced sales of low-margin other steel products, which were
discontinued during the period, and increased sales of products with
higher margins such as sucker rods.
Selling, general and administrative expenses, or SG&A, decreased
to US$419.1 million, or 17.3% of net sales in the nine months ended
September 30, 2003, compared to US$423.2 million, or 17.9% of net
sales, during the corresponding period of 2002. During the period,
there has been a reduction in selling expenses, resulting primarily
from substantially lower exports of welded pipes, and an increase in
general and administration expenses, due to non-recurring costs
relating to the delisting of subsidiaries and corporate reorganization
activities, additional taxes in Argentina and increased costs in Italy
due to the revaluation of the Euro against the U.S. dollar.
Other operating income and expenses showed a net loss of US$7.3
million in the first nine months of 2003 compared to a net loss of
US$2.4 million in the first nine months of 2002.
Net financial expenses totaled US$36.6 million in the first nine
months of 2003, compared to net financial expenses of US$27.1 million
in the same period of 2002. Net interest expenses decreased marginally
to US$12.9 million compared to US$14.3 million, foreign exchange
translation losses increased to US$26.2 million from US$3.9 million
and a gain of US$3.9 million was recorded on the purchase of
government bonds used to pay taxes, whereas, in the same period of the
previous year, a loss of US$8.8 million was recorded for financial
discounts on trade receivables.
Results of associated companies generated a gain of US$16.3
million in the first nine months of 2003, compared to a loss of US$4.2
million in the first nine months of 2002. These results reflect the
improvement of returns associated with Tenaris' indirect investment in
Sidor, which carried out a financial restructuring during the period.
Income tax provisions of US$90.0 million were recorded during the
first nine months of 2003, compared to income tax provisions of
US$190.3 million, net of a tax refund of US$35.4 million following a
judicial claim brought by Tenaris' principal subsidiary in Mexico,
during the corresponding period of 2002. This reduction in income tax
provisions principally reflects the effects of the devaluation of the
Argentine peso against the U.S. dollar during the first nine months of
2002, and its subsequent revaluation, on income tax provisions
recorded by Tenaris' subsidiaries in Argentina. During the first nine
months of 2002, Tenaris recorded significant income tax provisions in
relation to gains, in local currency terms, on foreign
currency-denominated monetary assets at its Argentine subsidiaries and
to the tax base of their non-monetary assets, whereas, during the
first nine months of 2003, its income tax provisions were reduced by a
reduction in income taxes actually paid and a partial reversal of
deferred taxes. Deferred tax liabilities decreased from US$435.6
million at December 31, 2002, to US$384.0 million at September 30,
2003.
Minority interest showed a loss of US$13.3 million in the first
nine months of 2003, compared to a loss of US$95.8 million in the
first nine months of 2002. Minority interest in the first nine months
of 2002 included a loss of US$65.1 million in respect of
participations in subsidiaries acquired in the exchange offer
completed in December 2002.
Cash Flow and Liquidity
Cash and cash equivalents decreased by US$104.8 million to
US$208.6 million during the nine months ended September 30, 2003, and
total financial debt increased to US$737.1 million from US$715.9
million at December 31, 2002. In addition, Tenaris has investments of
US$137.8 million in trust funds established to support its Argentine
and Brazilian operations.
During the nine months, net cash provided by operations was
US$252.8 million. Net cash used in investment activities was US$219.2
million, which includes investments of US$123.5 million in property,
plant and equipment, US$43.0 million in relation to the acquisition of
minority interests in Siderca and Dalmine, US$23.1 million in the
acquisition of an Argentine power plant and US$32.9 million used in
connection with the financial restructuring at Sidor, US$31.1 million
of which was in the form of subordinated convertible debt recorded as
a non-current receivable. Net cash used in financing activities was
US$138.4 million, which includes the payment of US$121.0 million in
dividends and a net reduction (excluding the effect of exchange rate
variations) of US$17.4 million in borrowings.
Some of the statements contained in this press release are
"forward-looking statements." Forward-looking statements are based on
management's current views and assumptions and involve known and
unknown risks that could cause actual results, performance or events
to differ materially from those expressed or implied by those
statements. These risks include but are not limited to risks arising
from uncertainties as to future oil prices and their impact on
investment programs by oil companies.
Consolidated Condensed Interim Income Statement
Three-month period Nine-month period
ended September 30, ended September 30,
------------------- -----------------------
(All amounts in US$
thousands) 2003 2002 2003 2002
Net sales 759,615 721,009 2,418,086 2,360,357
Cost of sales (508,814) (489,221) (1,671,470) (1,575,745)
--------- --------- ----------- -----------
Gross profit 250,801 231,788 746,616 784,612
Selling, general and
administrative
expenses (139,841) (156,382) (419,077) (423,212)
Other operating income
and expenses (1,724) 9,857 (7,281) (2,429)
--------- --------- ----------- -----------
Operating income 109,236 85,263 320,258 358,971
Financial income
(expenses), net (3,020) 7,832 (36,603) (27,114)
--------- --------- ----------- -----------
Income before income
tax and equity in
earnings (losses) of
associated companies 106,216 93,095 283,655 331,857
Equity in earnings
(losses) of associated
companies 10,630 979 16,273 (4,163)
--------- --------- ----------- -----------
Income before income
tax and minority
interest 116,846 94,074 299,928 327,694
Income tax (53,427) (37,946) (90,048) (190,265)
--------- --------- ----------- -----------
Net income before
minority interest 63,419 56,128 209,880 137,429
Minority interest(a) (1,981) (7,576) (13,255) (30,677)
--------- --------- ----------- -----------
Net income before other
minority interest 61,438 48,552 196,625 106,752
Other minority
interest(b) -- (24,052) -- (65,095)
--------- --------- ----------- -----------
Net income 61,438 24,500 196,625 41,657
(a) Minority interest excluding minority interest attributable to
participations in consolidated subsidiaries acquired in the
Exchange Offer
(b) Minority interest attributable to participations in
consolidated subsidiaries acquired in the Exchange Offer
Consolidated Condensed Interim Balance Sheet
September 30, 2003 December 31, 2002
----------------------- -----------------------
(All amounts in US$
thousands)
Assets
Non-current assets
Property, plant
and equipment,
net 1,942,691 1,934,237
Intangible
assets, net 53,817 32,684
Investments in
associated
companies 34,524 14,327
Other investments 160,787 159,303
Deferred tax
assets 53,374 49,412
Receivables 56,993 2,302,186 16,902 2,206,865
Current assets
Inventories 728,401 680,113
Receivables and
prepayments 170,115 172,683
Trade receivables 621,866 653,249
Cash and cash
equivalents 208,592 1,728,974 304,536 1,810,581
Total assets 4,030,980 4,017,446
Equity and
Liabilities
Shareholders'
equity 1,824,484 1,694,054
Minority interest 125,468 186,783
Non-current
liabilities
Borrowings 224,010 322,205
Deferred tax
liabilities 292,866 320,753
Deferred tax --
effect of
currency
translation
on tax base 91,109 114,826
Employee
liabilities 129,162 123,023
Provisions 30,262 33,874
Trade payables 15,691 783,100 18,650 933,331
Current liabilities
Borrowings 513,057 393,690
Current tax
liabilities 108,202 161,704
Other liabilities 103,036 53,428
Provisions 87,992 73,953
Customers'
advances 29,945 37,085
Trade payables 455,696 1,297,928 483,418 1,203,278
Total liabilities 2,081,028 2,136,609
Total equity and
liabilities 4,030,980 4,017,446
Consolidated Condensed Interim Statement of Cash Flows (selected)
Three-month period Nine-month period
ended September 30, ended September 30,
------------------- -------------------
(All amounts in US$
thousands) 2003 2002 2003 2002
Net income (loss) for the
period 61,438 24,500 196,625 41,657
Depreciation and amortization 47,450 45,078 145,937 128,650
Tax accruals less payments 18,262 60,616 (65,818) 134,756
Equity in (gains) losses of
associated companies (10,630) (979) (16,273) 4,163
Interest accruals less
payments (191) (5,259) (553) (52)
Net provisions (4,587) (27,470) 2,767 (23,883)
Minority interest 1,981 31,628 13,255 95,772
Change in working capital 77,327 136,139 3,396 2,374
Currency translation
adjustments and others (37,211) 7,921 (26,534) (42,056)
--------- --------- --------- ---------
Net cash provided by (used
in) operations 153,839 272,173 252,802 341,380
--------- --------- --------- ---------
Capital expenditure (34,827) (37,791) (123,460) (100,272)
Acquisitions of subsidiaries
and associates (19,110) (9) (67,875) (320)
Cash advanced for the Dalmine
tender offer 21,382 -- -- --
Proceeds from disposition of
property, plant and
equipment 1,617 (14,644) 3,181 10,308
Proceeds from associated
companies -- -- 106 --
Convertible loan to
associated companies -- -- (31,128) --
Changes in Trust fund -- (675) -- (11,907)
--------- --------- --------- ---------
Net cash used in investment
activities (30,938) (53,119) (219,176) (102,191)
Dividend paid -- (34,876) (115,002) (39,290)
Dividend paid to minority
interest in subsidiaries (2,477) (17,066) (5,976) (38,223)
Proceeds from borrowings 143,660 138,960 371,298 348,070
Repayments of borrowings (205,067) (274,924) (388,736) (409,094)
--------- --------- --------- ---------
Net cash (used in) provided
by financing activities (63,884) (187,906) (138,416) (138,537)
--------- --------- --------- ---------
Increase (decrease) in cash
and cash equivalents 59,017 31,148 (104,790) 100,652
--------- --------- --------- ---------
Cash at the beginning
of the period, 148,963 270,952 304,536 213,814
Effect of exchange rate
changes on cash and cash
equivalents 612 8,179 2,627 (4,187)
Increase in cash and cash
equivalents provided by
business acquisitions -- -- 6,219 --
Increase (decrease) 59,017 31,148 (104,790) 100,652
Cash at the end of the period 208,592 310,279 208,592 310,279
CONTACT: Tenaris
Gerardo Varela, 888-300-5432
www.tenaris.com