Silcotub profits reach 5m euros in Q1

Steel piping maker Silcotub Zalau made nearly 5 million euros (181.23bn ROL) in profits for the first three months of the year, compared with 232,000 euros in losses during the same period last year. The company”s turnover rose 88% on last year to reach 37.36 million euros (1,385.7bn ROL) for the first quarter. Silcotub makes unwelded carbon steel and low alloy steel pipes for use in the construction, petroleum and natural gas, energy, chemical and machine engineering industries. The company was acquired by international group Tenaris last year, one of the leading producers of pipes worldwide. Last year Silcotub posted losses of 3.4 million euros, nearly three times higher than its losses in 2003 as a result of the higher cost of raw materials, especially for steel. The company generated 116 million euros in turnover in 2004, up 46.3% on the previous year. Silcotub”s business was also affected by the price increases for electricity and water as part of the trend to align prices with those in the EU. ZF