Feb 20 (Reuters) - Italian steel pipe maker Tenaris
has warned that a tariff hike by U.S. President Donald
Trump on steel and aluminum will create a "high level of
uncertainty" for costs and prices in the second half of the
year.
Trump stunned markets by announcing tariffs of 25% on all
steel and aluminum imported into the U.S. from next month,
leaving industries that rely on such supplies scrambling to
offset an expected jump in costs.
"Likely changes in US tariffs and their possible
ramifications on trade flows will introduce a new dynamic with a
high level of uncertainty for costs and prices to our results,"
Luxembourg-based Tenaris said.
It added in a statement late on Wednesday that it expected
its first-quarter revenue and core earnings (excluding
extraordinary items) to be in line with the previous quarter,
before rising moderately in the second quarter of 2025.
Despite the warning by Tenaris, brokerage JPMorgan said it
did not expect implementation of the tariffs to negatively
impact Tenaris' financial results.
"In fact, (it) would likely lead to an increase in U.S. OCTG
(Oil Country Tubular Goods) pricing," it added in a note, saying
the rising prices would offset the higher cost for raw
materials.
Tenaris also named Carlos Gomez Alzaga as its new chief
financial officer, succeeding the retiring Alicia Mondolo
effective May 2.
The exploration pipeline maker reported a 17% drop in net
sales to $2.85 billion for the fourth quarter, although above
its previous guidance due to inventory reductions and advanced
shipments to the Middle East and Turkey.
Its EBITDA margin for the last quarter of 2024 stood at
25.5%, below the 28.6% recorded in the same period the year
before.
Tenaris also proposed an overall dividend per share of $0.83
for 2024, including the interim dividend of $0.27 paid in
November.
(Reporting by Rhea Rose Abraham in Bengaluru and Enrico
Sciacovelli in Gdansk;
Editing by Anil D'Silva and Helen Popper)