Maverick Tube Corp. announced net income of $58.0 million on net sales of $348.1 million for the quarter and net income of $86.7 million on net sales of $659.4 million for the six months ended June 30, 2004.

Second Quarter Results—Net income of $58.0 million ($1.36 per share) compares to net income in the same quarter last year of $1.1 million ($0.03 per share). Net sales, $348.1 million, were up from net sales of $194.9 million for the second quarter of last year.

Total tons of U.S. energy-related products shipped decreased to 131,981 tons, down 8%, compared to the second quarter of 2003. Drilling levels in the U.S. increased by 9% compared to the second quarter of 2003, with a 17% increase in gas-related drilling and a 6% decrease in oil-related drilling. The company's energy shipments in Canada decreased 16%, down to 39,533 tons, during the second quarter over last year's rate, with drilling levels decreasing 1% from the second quarter of last year. Second quarter shipments of the company's industrial products increased to 118,989 tons, or 20%, compared to the second quarter of 2003, primarily attributable to improved industry conditions.

Six Month Results—Net income of $86.7 million ($2.04 per share) compares to net income last year of $1.3 million ($0.03 per share). Net sales of $659.4 are up from net sales of $414.4 million in the prior year.

Comments—Gregg Eisenberg, President and CEO said, "The rig count moved ahead 9% in the U.S. and declined 1% in Canada compared to the comparable quarter of last year. However, imports into the U.S. were up 18% from a year ago and 14% from last quarter. Inventory held by distributors and end-users in the U.S. increased approximately 59,000 tons as compared to a 124,000 ton increase in the second quarter of last year. As a result, domestic OCTG shipments in the U.S. were down 5% and 10% from the second quarter of last year and from last quarter, respectively. In comparison, Maverick's domestic shipments of OCTG products in the U.S. decreased by 10% from the year ago quarter and by 18% from last quarter. In Canada, Maverick's shipments of OCTG products decreased 23% from last year's quarter while decreasing by 50% from last quarter."

Eisenberg went on to say, "The record profit recorded during the quarter stemmed from three factors. First, demand for our energy products remained good, despite being off a bit from the prior quarter. Second, our industrial business was very strong, contributing heavily to our overall results. Finally, the quarter benefited from the lower priced inventory we still had available, which coupled with higher selling prices based upon sharply higher increased raw material costs, yielded higher than normal margins. All segments of Maverick's business performed well during the quarter. We remain optimistic that positive financial results will continue in the coming quarters."

Maverick Tube Corp. is a St. Louis based manufacturer of tubular products used in the energy industry for drilling, production, well servicing and line pipe applications, as well as industrial tubing products used in various applications.