TUBOS DE ACERO DE MEXICO REPORTS DETERIORATION IN EXPORT MARKET FOR OIL COUNTRY TUBULAR GOODS
TUBOS DE ACERO DE MEXICO REPORTS DETERIORATION
IN EXPORT MARKET FOR OIL COUNTRY TUBULAR GOODS
MEXICO CITY, April 1 /PRNewswire/ -- Tubos de Acero de Mexico, S.A. (AMEX: TAM) reported today that there has been a deterioration in the export market for oil country tubular goods due primarily to a retraction in the global demand as a consequence of the decline in oil prices and to the recently demonstrated attitude of Japanese producers to accept prices for future delivery on terms significantly lower than the previously prevailing terms.
It now seems probable that the action by Japanese producers reflects a pattern of conduct and not merely isolated and possibly unrepresentative transactions. Should this pricing policy continue, it would have adverse effects on the company's revenues and profits. Export sales in 1991 accounted for approximately 55 percent of the company's total revenues.
The company is starting to study cost reduction measures related to its workforce, production facilities and all other aspects of its business feasible for it to take and to evaluate how rapidly these might be implemented in order that the company can adjust to the new market conditions and continue to successfully compete in the export markets.
-0- 4/01/92 R
/CONTACT: Alfredo Freyssinier of Tubos de Acero de Mexico, S.A., 011-525-202-0165/ CO: Tubos de Acero de Mexico S.A. ST: IN: SU: 217 04-01-92 12:06 EDT TQ-OS -- NY042 -- 3878 04/01/92 12:47 EST