Northwest Pipe Reports Full Year 2011 Results
05/02/2012 - Northwest Pipe Co. announced its 2011 financial results including record revenues in 2011 and a return to profitability. Net sales for the year ended December 31, 2011 increased 32.3% to $511.7 million compared to $386.8 million in the prior year.
Northwest Pipe Co. announced its 2011 financial results including record revenues in 2011 and a return to profitability. Net sales for the year ended December 31, 2011 increased 32.3% to $511.7 million compared to $386.8 million in the prior year. According to Northwest Pipe, net sales in 2011 were the highest ever for the company, exceeding the previous high of $451.4 million in 2008.
Gross profit was $59.1 million (11.6% of net sales) in 2011, which almost doubled the gross profit of $29.7 million (7.7% of net sales) in 2010. Net income was $12.7 million, or $1.35 earnings per diluted share, in 2011 compared to a net loss of $5.4 million, or $0.59 loss per diluted share, in 2010.
Water Transmission sales increased by 22.9% to $271.9 million in 2011, from $221.3 million in 2010. The increase in sales was due to a 19% increase in average selling price and a 3% increase in volume. Water Transmission gross profit more than doubled to $43.2 million (15.9% of segment net sales) in 2011 from $19.4 million (8.8% of segment net sales) in 2010.
Tubular Products sales increased 44.9% to $239.8 million in 2011 from $165.5 million in 2010, driven by a 29% increase in tons sold from 157,000 to 202,000 tons and a 14% increase in the average selling price per ton. The most significant increase in volume was for energy pipe, resulting from increases in sales related to natural gas and oil drilling operations. Tubular Products gross profit increased to $16.0 million (6.7% of segment net sales) in 2011 from $10.3 million (6.2% of segment net sales) in 2010.
As of December 31, 2011, the backlog of orders was approximately $175 million as compared to $258 million at December 31, 2010. As of March 31, 2012, the backlog of orders was approximately $198 million. The backlog includes confirmed orders, including the balance of projects in process, and projects for which the company has been notified that they have been the successful bidder even though a binding agreement has not been executed.
Outlook – "We have seen Water Transmission and Tubular Products sales and gross profit improve significantly in 2011 as compared to 2010," said Richard Roman, President and Chief Executive Officer of the company. "As previously discussed and reflected in our December 31, 2011 backlog numbers, we experienced a decline in bidding activity for our Water Transmission segment during the second half of 2011, which resulted in a lower backlog for that segment as we entered 2012. However, we anticipate strong energy markets for our Tubular Products Group will continue through 2012."
Northwest Pipe Co. manufactures welded steel pipe and other products in two business groups. Its Water Transmission Group is the leading supplier of large-diameter, high-pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller-diameter steel pipe for a wide range of products including energy, construction, agriculture and industrial systems. The company is headquartered in Vancouver, Wash., and has 10 manufacturing facilities across the United States and Mexico.
