Houston, Texas-based, Fortune 500 company, MRC Global Inc. (MRC - Analyst Report), recently inked a contract with another Texas-based Fortune 500 company, Celanese Corporation (CE - Analyst Report), to provide pipe, valve and fittings (PVF). The contracts spans across five years, however, the contract value has been kept confidential.
This contract is an extension of the strong domestic relationship between the two companies which has now been made international. The contract obligates MRC Global to provide PVFs for the maintenance, repair and operations (MRO) to Celanese’s worldwide operations. In addition to this, MRC Global is also required to cater to Celanese’s traditional distribution, project services and on-site materials management.
Celanese is a global provider of acetyl products, which are the intermediate chemicals used in almost every industry like filter media, paper and packaging, construction, food and beverage, to name a few. A tie-up with such a company can prove beneficial for MRC Global in terms of revenue generation as well as global reach.
MRC Global announced that it intends to release its second-quarter 2013 results on Aug 1, 2013, after the close of market. The Zacks Consensus Estimate stands at 41 cents, indicating a year-over-year increase of 4.36%.
MRC Global is a provider of pipe, valve and fittings, primarily to the energy markets. However, it now plans to strengthen its presence in the chemicals industry worldwide. MRC Global serves more than 18,000 customers, with the help of roughly 400 locations across North America, Europe, Asia and Australasia.
MRC currently carries a Zacks Rank #5 (Strong Sell). However, there are many other stocks in the pipe and tube industry that are performing better than MRC. Mueller Water Products, Inc. (MWA - Snapshot Report), carrying a Zacks Rank #1 (Strong Buy) and Valmont Industries, Inc. (VMI - Analyst Report) carrying a Zacks Rank #2 (Buy), look attractive and are worth considering.