Maverick Tube Corp. announced net income of $38.7 million on net sales of $404.4 million for the quarter ended June 30, 2005.

The $38.7 million net income ($0.89 per diluted share) compares to net income of $31.2 million ($0.72 per diluted share) for the first quarter 2005. Income from continuing operations was $28.6 million ($0.66 per diluted share) compared to $31.8 million ($0.73 per diluted share) for the first quarter 2005. Net income included an $11.2 million ($0.26 per diluted share) gain on the sale of the company's hollow structural sections (HSS) business, along with a loss of $0.03 per diluted share from discontinued operations.

Net sales from continuing operations, $405.4 million, compare to $417.1 million for the first quarter 2005. Sales of energy products recorded in the second quarter were $319.6 million compared to $333.6 million in the first quarter 2005, reflecting the normal seasonal slowdown in Canadian activity largely offset by robust U.S. and international activity. Canadian shipments declined by about 35,400 tons while other energy shipments increased about 22,700 tons, resulting in a net 5.3% decline compared to the first quarter 2005. The revenue effect of this decline was partially offset by higher selling prices. U.S. active rigs running increased 4.5% over the first quarter while the Canadian rig count declined 53.7% over the same period.

Sales of industrial products recorded in the second quarter were $85.9 million compared to $83.5 million in the first quarter 2005. This 2.9% revenue increase is attributable to a 14% increase in shipments partially offset by lower average selling prices.

Comments—C. Robert Bunch, the company's Chairman and CEO, said, "We are pleased with the performance of our energy segment in the second quarter. Despite the anticipated reduction in Canadian activity due to Spring break up, energy gross margins improved over last quarter primarily due to higher selling prices and the anticipated reduction in steel costs flowing through cost of goods sold. Our industrial segment has not been as robust. Non-residential construction activity, which was expected to increase from 2004 levels, was actually down 9% through May. As a result, while industrial product pricing was in line with expectations, volumes were below our forecast. We remain hopeful that activity levels will improve in the second half of the year."

Mr. Bunch continued, "We are pleased to report that Maverick made substantial strides towards a number of its strategic goals during the second quarter. We acquired Tubos del Caribe, SA, a low-cost supplier of quality premium OCTG and line pipe, which gives us a substantial presence in Latin American energy markets. In connection with this acquisition, we obtained a new revolving credit facility sufficient to help fund future growth. We have also commenced a program that should, when combined with our acquisition of TuboCaribe, more than double our capacity to manufacture premium alloy OCTG and line pipe for U.S. and Canadian market consumption by the end of this year. When completed, we estimate Maverick will have about 300,000 tons of alloy OCTG capacity available for the U.S. and Canadian markets, along with 20,000 tons of full body normalized line pipe capacity. We also increased our energy focus and created liquidity for our core business by successfully divesting our industrial HSS business. Finally, we are continuing our efforts to reduce expenses and operate as leanly and efficiently as possible."

"We believe these initiatives will materially add to our foundation for future growth," Mr. Bunch continued, "especially when combined with the current positive trends in the markets affecting Maverick's businesses. Anticipated robust global drilling activity should drive continued heavy demand for all of our various energy products. In addition, steel costs have fallen significantly over the past several months and currently appear to be stabilizing at attractive levels. Assuming our selling prices remain strong, as we expect, we should see the margin expansion that began in the second quarter accelerate as the year progresses and into next year. All in all, we are extremely optimistic about the second half of this year and 2006."

Maverick Tube Corp. is a St. Louis, Missouri, based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products (steel electrical conduit, HSS, standard pipe, pipe piling, and mechanical tubing) used in various applications.