In the Q3 of 2012, the American division revenue declined by 8% to USD 410 million compared to the prior quarter primarily due to lower welded volumes and to a lesser extent price reductions across the welded pipe business.
Continued pressure from imports now coupled with a softer drilling environment and higher inventory levels drove the decline in welded pipe prices. Adjusted EBITDA fell by 39% to USD 42 million compared to the Q2 of 2012 mainly as a result of unfavorable sales mix lower pricing and major repairs at several pipe mills.
For the first 9 months of 2012, the American division revenue increased by 13% and amounted to USD 1,298 million mainly due to higher volumes in welded pipes as well as better pricing in both the welded and seamless businesses. Adjusted EBITDA was fairly stable, declining by 2% to USD 196 million. The favorable items impacting revenue were however, offset by negative mix and higher cost for scrap used in production and operational downtime.
