Updated TMK data for the Europe segment

Pipe Metallurgical Company at its European division enterprises decreased revenues in the last quarter by $ 12 million, or 17 percent compared to the previous quarter, to $ 60 million. This is mainly due to the negative impact of foreign exchange rates and lower sales of steel billets.

Gross profit declined $ 5 million, or 33 percent qoq, to ​​$ 11 million, driven by the unstable economic situation in the European market and consumers' intentions to keep pipe stocks low.

TMK's European division shipped 154,000 tonnes of seamless pipes in 2014, a decrease of 1.2 percent compared to 2013. In the fourth quarter, European Division shipments were up 19.9 percent quarter-on-quarter to 39,000 tonnes.

TMK's European segment revenues decreased in 2014 by $ 15 million, or 5 percent YoY, to $ 270 million, mainly due to lower sales of steel billets. Gross profit increased by $ 1 million, or 3 percent, to $ 55 million. Gross profit rose to 21 percent from 19 percent for the full year of 2013, driven by an increase in the share of seamless pipes in total volume.

Adjusted EBITDA remained virtually unchanged from full year 2013 at $ 32 million. Adjusted EBITDA margin improved to 12 percent from 11 percent for the full year 2013.