Vallourec slips into net loss, to cut 1,400 jobs

martes 24 de febrero de 2015 12:45 GYT

PARIS Feb 24 (Reuters) - French steel pipe maker Vallourec unveiled a plan to cut 1,400 jobs in 2015 on Tuesday as a drop in demand from oil company customers following the plunge in crude prices tipped the group into a full-year net loss in 2014.

Vallourec, which had flagged in January a 1.1 billion euro ($1.25 billion) write-down on European and Brazilian assets, said it expected to cut costs by 350 million euros in 2015-2016 and slash annual investments to 350 million euros from 450 million euros.

The group is also targetting a positive free cash flow in 2015, after 274 million euros in 2014, it said in a statement.

In 2014, the group swung to a net loss of 924 million euros, compared to a profit of 262 million euros the year before, on sales of 5.7 billion euros, up 2.2 percent.

Vallourec plans to pay a dividend of 0.81 euros per share in 2014. ($1 = 0.8825 euros) (Reporting by Benjamin Mallet, writing by Michel Rose, editing by Leigh Thomas)