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MAVERICK TUBE CORPORATION REPORTS FIRST QUARTER RESULTS

 ST. LOUIS, Jan. 18 /PRNewswire/ -- Maverick Tube Corporation (AMEX: MAV) announced today the results for its first quarter of fiscal 1994. The Company reported net income during the quarter of $361,000, or $0.06 per share, down from the profit reported in the same quarter last year of $1.2 million, or $0.19 per share. Net sales decreased to $32.1 million for the quarter from $35.7 million the year before.
 First quarter results, as compared to a year ago, were hampered by lower margins resulting from increased steel costs. In addition, overall market share was down due to less activity within Maverick's market segment and higher import levels. Drilling for the quarter averaged 862 rigs, down from 874 the previous year when activity was boosted by expiring Section 29 tax credits. Drilling now stands at 792 rigs, down 5 percent from last year's level. Gas related drilling is down 10 percent from year ago levels despite the current strength in gas prices. Oil related drilling is up 8 percent in an environment of lower oil prices.
 Gregg Eisenberg, president and CEO, noted, "Unfortunately our sales declined from last year's rate due to less activity within our segment and increased competition as anticipated increases in drilling failed to occur. The import rate increased as foreign producers sought to take advantage of hopes for an improving market. Product prices remained flat, despite industry wide increases in raw materials costs, squeezing our margins. Hopefully, the price increases we are now trying to put through will allow our margins to return to normal levels. Thus far, it appears that there is wide support for these increases on most of our products. I am also encouraged by preliminary 1994 budgets suggesting higher drilling levels by our independent and major oil and gas customers."
 Eisenberg also noted, "We are nearing a decision on the location and the financing of our proposed structural tube operations. It now appears that our start up will occur sometime in October, 1994. I am confident that this will be a solid contributor for Maverick in 1995."
 Maverick Tube Corporation is a St. Louis, Mo., based manufacturer of tubular products used in the energy industry in drilling, production and surface transportation applications.
 MAVERICK TUBE CORPORATION
 SELECTED CONSOLIDATED FINANCIAL DATA
 FOR THE FIRST QUARTER ENDED DEC. 31, 1993
 (IN THOUSANDS, EXCEPT SHIPMENTS AND PER SHARE DATA)
 UNAUDITED
 First Quarter
 1994 1993
 Average U.S. Rig Count 862 874
 Shipments (Tons) 54,136 61,296
 Net Sales $32,131 $35,717
 Gross Profit $2,002 $3,278
 Income From Operations $740 $1,674
 Net Earnings $361 $1,168
 Earnings Per Share $0.06 $0.19
 Weighted Average Number Shares 6,140 6,140
 -0- 1/18/94
 /CONTACT: Charles O. Struckhoff, Chief Financial Officer of Maverick Tube, 314-537-1314/
 (MAV)


CO: Maverick Tube Corporation ST: Missouri IN: OIL SU: ERN

SP -- NY044 -- 2661 01/18/94 10:49 EST
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Publication:PR Newswire
Date:Jan 18, 1994
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