PRESS RELEASE

(Llodio, 7 November 2006).-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, obtained operating profits (EBIT) of 35 million euros between January and September 2006, according to the information sent by the Company to the Spanish National Stock Market Commission (Comisión Nacional del Mercado de Valores - CNMV). This figure means an increase of 14.6% with respect to the figure achieved in the same period of 2005 and highlights the positive progress made in fulfilling the targets set by the Company for the fiscal year.

The consolidated sales in the first nine months of the year amounted to 379.2 million euros, which represents an increase on 18.6% over the figure for sales in the same period of 2005.

The gross operating profit (EBITDA) to September rose to 48.07 million euros, showing growth of 13.1% over the same period of the previous year.

For financial year 2006 as a whole, TUBACEX expects to improve not only the sales but also the profits achieved in 2005, all-time record for the Company.

The strength of world demand for seamless stainless steel tube, reflected in the Company’s large order book and in a rise in tube prices, together with the increases in productivity and reduction in costs carried out by the Company, are factors that will have a very positive influence on business in forthcoming financial years.

 

				2006	2005		%2006/2005
SALES				379.20	319.68		+18.6%
GROSS OPERATING PROFIT (EBITDA)				48.07	42.49		+13.1%
OPERATING PROFIT (EBIT)				35.04	30.57		+14.6%
NET PROFIT				20.77	18.88		+10.0%
NET CASH FLOW				33.05	30.12		+9.7%

PRESS RELEASE

Llodio, 11 September 2006.-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, is to pay its shareholders a supplementary dividend of 0.0233 euros gross per share on 15 September next. Included in this amount is the proportional part that corresponds to the company’s treasury stock.

The total amount of this supplementary dividend, chargeable to 2005 profits, is 3.05 million euros.

TUBACEX paid out an ordinary dividend of 0.0543 euros gross per share in June last, involving a total amount of 7.12 million euros.

The joint total amount of both dividends is 0.0776 euros gross per share, which means a total amount of 10.17 million euros and represents a pay-out of 40% of the profits obtained in 2005, which totalled 25.42 million euros. This is the largest dividend paid by TUBACEX to its shareholders and represents an increase of 50.7% over the dividend paid out last year.

PRESS RELEASE

Tubacex achieves the biggest order book in its history

 

(Llodio, 4 August 2006).-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, obtained consolidated net profits of 14.7 million euros during the first half of 2006, a figure which represents an increase of 12.4% with regard to the amount obtained in the same period of 2005.

These results clearly show the excellent progress towards achieving the targets set for the year and make it possible to state that 2006 is going to be a good year, with foreseeable increases in profits in relation to 2005.

The net cash flow generated up to June rose to 23.62 million euros, representing an increase of 9.1% with regard to the figure obtained the previous year.

Consolidated sales for the January-June period reached 280.07 million euros, a figure 24.3 higher than in 2005, when Group sales were in excess of 225 million euros.

TUBACEX places a very positive evaluation on these figures, which have been achieved in a particularly demanding half year characterised by an intense process of production adaptation in view of the great strength of the market, reflected in a historically high order book. Parallel to this, successive price rises have been applied during 2006, helping to mitigate the strong increases which have taken place in the prices of raw materials and in energy costs.

TUBACEX, moreover, has decided to anticipate the actions foreseen in its strategic, commercial and industrial project in order to provide a response to the very important expectations of improvement that the demand for seamless stainless steel tubes is going to experience in practically all the markets served, while not ruling out new price rises in the second half of the year. 

 

PRESS RELEASE

 

Llodio (Alava), 5 July 2006.-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, will pay out an ordinary dividend of 0.0543 euros gross per share to its shareholders as from 14 July next. The total amount involved, to be drawn from profits obtained in fiscal year 2005, is 7.12 million euros.

Payment of this dividend, which is to be carried out through the Banco Bilbao Vizcaya Argentaria, was approved at the Annual General Meeting of Shareholders of the company held on 25 May last.

Moreover, TUBACEX will pay out a supplementary dividend of 0.0233 euros gross per share, involving payment of a total amount of 3.05 million euros, in September.

The joint total amount of both dividends is 0.0776 euros gross per share, which means a total amount of 10.17 million euros and represents a pay-out of 40% of the profits obtained in 2005, which totalled 25.42 million euros. This is the largest dividend paid by TUBACEX to its shareholders and represents an increase of 50.7% over the dividend paid out last year.

 

PRESS RELEASE

 

(Llodio (Alava), 28 June 2006).-

Tubos Mecánicos S.A., a company belonging to the TUBACEX Group, has opened a new warehouse in the Madrid locality of Campo Real, with a covered surface area of 6,600 square metres, to replace and double the surface area of the warehouse that the company currently has in the locality of Arganda del Rey.

The new warehouse is equipped with the most modern facilities for cutting and handling materials, allowing the company not only to provide a stock of products particularly suited to customer requirements but also to improve its service to customers.

In addition to the new facility now open in Madrid, Tubos Mecánicos S.A. also has warehouses in Álava, Barcelona, Pontevedra, Valencia and Zaragoza.

The main activity of this TUBACEX Group company is marketing hollow bar in carbon steel and other kinds of tubes for the capital goods industry.

 

PRESS RELEASE

The Group now has fourteen sales offices throughout the world

 

(Llodio, 21 June 2006).-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, has opened a new sales office in the Brazilian city of Sao Paolo, staffed by its own personnel, with the aim of increasing the industrial Group’s activity in Latin America.

The new sales office, which is called TUBACEX LATINOAMERICA, will be responsible for coordinating the Group’s sales network in South and Central America. In North America, TUBACEX already has sales offices in the U.S.A. and Canada.

With this new sales office, TUBACEX will improve its attention to current customers in Latin America, enable it to be closer to new customers and take advantage of the good growth prospects in demand for tubes expected in the oil-producing countries in the area.

The commercial aspects of the Strategic Plan 2010, recently implemented by TUBACEX, include reinforcing the Group’s presence in those areas where greater growth in demand for tubes is expected in coming years. To this effect, TUBACEX opened a sales office in Shanghai in 2005 in order to increase its presence in the Far East, the market with the greatest growth potential.

With the new office now open in Sao Paolo, the TUBACEX Group has a total of fourteen sales offices in twelve countries and also has exclusive sales agents in another thirty countries spread throughout the world, thereby providing a response to the internationalisation process initiated several years ago, which has enabled the company to become the second largest seamless stainless steel tube manufacturer in the world. 
 

PRESS RELEASE

Ordinary General Meeting of Shareholders for financial year 2005

 

(Llodio, 25 May 2006).-

The Ordinary General Meeting of Shareholders of TUBACEX, meeting today at the Company headquarters in the locality of Llodio, Álava, has approved the distribution of two dividends, one ordinary and the other supplementary, for a total amount of 0.0776 euros gross per share, to be paid out of the profits of financial year 2005. This is the biggest dividend ever paid out by TUBACEX to its shareholders and represents an increase of 50.7% over the dividend distributed last year.

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, will allocate a total of 10.17 million euros to paying out this dividend, a dividend payout of 40% of net profits for 2005, which totalled 25.42 million euros.

In accordance with the agreement reached by the General Meeting of Shareholders, the ordinary dividend will be paid out in the month of July and will amount to 0.0543 euros gross per share, involving a total amount of 7.12 million euros.

The supplementary dividend will be distributed in the month of September and will involve a payout of 0.0233 euros gross per share, involving a total amount of 3.05 million euros.

In addition to this amount, those shareholders present or represented at the General Meeting held today will receive an attendance premium of one euro cent gross per share.

 

The General Meeting of Shareholders has also agreed to remove the so-called “protection clauses”, by approving the modifications to articles 13 and 17 of the By-Laws with regard to those aspects concerning limitation of voting rights and requirements in order to form part of the Board of Directors. Approval of this point required an attendance or representation quorum at the General Meeting of 80% of the shares, which has been exceeded at this General Meeting.

Moreover, the General Meeting has agreed to extend the term of office of board members from five to six years, thereby adapting the By-Laws to the final provision 1.4 of Act 19/2005, and has approved the introduction of electronic voting into the said By-Laws.

 

With regard to financial year 2005, whose annual accounts have been approved today by the General Meeting of Shareholders, Álvaro Videgain, President and CEO of TUBACEX, described it as historical because the Company’s figures for production, sales, profits and cash flow all set new records. Factors which have contributed to this situation have been, on the one hand, the positive circumstances of the world economy and, on the other hand, the activation of investment projects in the oil and gas, petrochemical, chemical and energy sectors, the main buyers of the products manufactured by the Company, seamless stainless steel tubes.

Consequently, consolidated sales rose to 430.5 million euros, a figure 23.9% higher than in the preceding financial period. It is important to emphasise the growth of sales on the North American market (+30.3%), in spite of the strength of the euro against the dollar, which penalises sales of European companies exporting into that market. Sales in the European Union increased by 18.3% and represent 64% of consolidated sales.

The operating profit (EBIT) stood at 37 million euros, with an increase of 47.6% over 2004.

The consolidated net profit reached 25.42 million euros, which means an increase of 65.3% with regard to the profit obtained the previous year.

The net cash flow generated amounted to 41.06 million euros, and therefore 34.8% higher than in financial year 2004.

 

Mr. Videgain informed the General Meeting of Shareholders about important new incorporations into the shareholders, such as that of the Condesa industrial group, with 5.023%, whose incorporation onto the Board of Directors has been approved by the General Meeting. He also informed about the North American depositary and securities custodian company, State Street Bank & Trust, entering the share capital of the Company with almost 5%. Together with these two companies, the leading shareholders of TUBACEX are Fidelity International, which has increased its capital stockholding from 5.06% to 6.01%, and Chase Nominees, which holds 5.04%.

In the same way, the President of TUBACEX mentioned the positive tendency shown by the Company’s shares on the Stock Market, and pointed out that the fifth consecutive year of revaluation was achieved in 2005, with an accumulated write-up in share value of 225% since financial year 2000.

 

Application of the Competitiveness Plan that TUBACEX has been implementing in recent years has played a determining role in achieving these positive results on the financial period. The purpose of this Plan is to capitalise on industrial synergies and maximise the economies of scale deriving from the Group’s industrial configuration, with the aim of improving operating margins and achieving a differentiated competitive position in productivity and costs.

Through implementation of the Plan in 2005, important increases have been obtained in the competitiveness of key facilities in the Group’s manufacturing process. Standing out among these have been the increase in production of the steel mill, the improvement in the productivity of the extrusion presses and of the cold rolling of tubes, as well as the reduction of maintenance costs. These processes will continue to be implemented throughout 2006.

The investments which are being carried out in implementing the Plan ensure increases in the productivity and capacity of key Group facilities, without creating increases in the personnel and fixed costs structures, because a limited volume of investment is involved.

 

In addition, development of the Strategic Plan that defines the business project of TUBACEX up to a time horizon of 2010 continued throughout the financial year. The purpose of this Plan is to guarantee future growth and profitability and to convert the Company into the leading seamless stainless steel tube manufacturer in the world.

The strategic alternative adopted is committed to profitable organic growth, minimises investment requirements and maximises value creation for shareholders.

The Plan foresees the growth of the company through optimising use of the capacity of the current production structure and by means of the quest for commercial excellence, affecting consolidation of the position of leadership and profitability in Europe, growth in traditional areas such as the U.S.A. and Canada, as well as in those areas where a greater increase in the demand for tubes is forecast, such as in the case of Asia. The Group’s entry into new high added value products with strong growth potential is also planned.

 

With regard to the current financial year, Álvaro Videgain stated to the General Meeting that 2006 is revealing a continuation of the economic growth cycle that started in 2004 and that estimates concerning the evolution of the international economy are optimistic. Moreover, high oil prices are continuing to activate investment project in this sector and, in general, in the energy and petrochemical sectors, all of which will benefit the demand for seamless stainless steel tube.

The months of the financial year which have already lapsed are confirming this positive market situation, with sales having already reached 129 million euros, making them 20% higher than in 2005, while net profit stands at 7.47 million euros, thereby showing an increase of 21.5% over the previous year. 

 

DATOS RELEVANTES DEL GRUPO TUBACEX CONSOLIDADO
	2005	2004	2003	2002	2001
SALES	430.50	347.45	258.82	286.70	286.67
OPERATING PROFIT (EBIT)	37.00	25.06	10.20	17.95	15.71
NET PROFIT	25.42	15.38	6.04	16.31	15.51
NET CASH FLOW	41.06	30.46	21.13	32.58	30.55
TOTAL ASSETS	456.93	388.87	341.24	348.16	335.11
NET WORTH	206.02	186.82	173.93	177.25	168.08
FINANCIAL DEBTS	147.33	115.63	101.58	104.75	105.28
FINANCIAL PROFIT / (LOSS)	(3.82)	(5.30)	(3.24)	(5.02)	(3.85)
SHARE CAPITAL	59.84	59.84	59.84	59.84	59.84
OPERATING PROFIT / SALES (%)	8.59	7.21	3.94	6.26	5.48
NET PROFIT / SALES (%)	5.90	4.43	2.33	5.69	5.41
NET CASH FLOW / SALES (%)	9.54	8.77	8.16	11.36	10.66
PROFIT / EQUITY (ROE) (%)	12.34	8.23	3.47	9.20	9.23
PROFIT / ASSETS (ROA) (%)	5.56	3.96	1.77	4.68	4.63
PROFITS PER SHARE (PPS) in euros	0.191	0.116	0.045	0.123	0.117
CASH FLOW / SHARE (CFPS) in euros	0.309	0.229	0.159	0.245	0.230
BOOK VALUE /SHARE in euros	1.55	1.40	1.31	1.33	1.26
DIVIDEND in euros per share	0.051	0.018	0.042	0.042	0.030
MARKET CAPITALISATION	476.06	251.33	188.83	166.22	164.89
PRICE / BOOK VALUE times	2.31	1.35	1.09	0.94	0.98
PER times	18.73	16.34	31.26	10.19	10.63
AVERAGE WORKFORCE	1,628	1,517	1,485	1,504	1,577
EMPLOYEES IN SPAIN	963	904	871	837	836
EMPLOYEES ABROAD	665	613	614	667	741

Figures in millions of euros. ( )
Negative balances and figures.
N.B.: 2004 figures have been reconciled due to application of the International Financial Reporting Standards adopted by the European Union (IFRS-EU). In this way, the financial statements for 2005 and 2004 have been obtained by applying the same accounting standards.

 

PRESS RELEASE

TUBACEX ACHIEVES NET PROFITS OF 7.47 MILLION EUROS IN THE FIRST QUARTER

(Llodio, 9 May 2006).-

TUBACEX, the world’s second largest seamless stainless steel tube manufacturer, obtained consolidated net profits of 7.47 million euros during the first quarter of 2006, according to the information sent by the company to the Spanish National Stock Market Commission (Comisión Nacional del Mercado de Valores - CNMV).

This figure represents an increase of 21.5% with regard to the net profits obtained in the same period of 2005, when this figure was 6.15 million euros.

The consolidate sales continued their progression in the first quarter of the year and reached 128.85 million euros, a figure 20.1% higher than that of 2005, when Group sales totalled 107.25 million euros.

The net cash flow generated between January and March amounted to 11.95 million euros, representing an increase of 18% in comparison with the total reached in the previous year, which was 10.13 million euros.

These results demonstrate the strength of demand for seamless stainless steel tube, boosted by current and anticipated investments in the energy sector worldwide. The implementation of the measures included in the Competitiveness Plan (2003) and the Strategic Plan (2005) is placing the Group in a competitive position which is materialising in a solid, structural and progressive improvement in its profitability levels.

 

EVOLUTION OF CONSOLIDATED RESULTS: JANUARY-MARCH 2006
 

				2006	2005	% 2006/2005
SALES				128.85	107.25	20.1%
OPERATING PROFIT (EBIT)				11.54	9.75	18.4%
NET PROFITS				7.47	6.15	21.5%
NET CASH FLOW				11.95	10.13	18.0%

      Figures in millions of euros.