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Northwest Pipe Reports Q1 2011 Results

05/11/2011 - Northwest Pipe has filed its first-quarter Quarterly Report on Form 10-Q with the SEC, in which it reported net income of $3.6 million on sales of $111.5 million.

Northwest Pipe Co. has filed with the Securities and Exchange Commission its Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. In the 10-Q, the company reported net income of $3.6 million on sales of $111.5 million.
 
First Quarter 2011 Results — The $3.6 million net income ($0.38 per diluted share) compares to net income of $1.1 million ($0.11 per diluted share) for the year-ago first quarter. Sales of $111.5 million reflect a 38.7% increase compared to sales of $80.4 million in the year-ago quarter.
 
Gross profit was $15.6 million (14.0% of sales), an increase of $6.5 million from $9.1 million (11.3% of net sales) in the year-ago quarter.
 
Segment Results — The company’s Water Transmission segment reported gross profit of $10.2 million (17.4% of segment net sales), which compares to gross profit of $6.7 million (12.7% of segment net sales) in the year-ago quarter. The segment also reported sales of $58.6 million, an 11.3% increase from $52.7 million in the year-ago first quarter. The increase in sales was due to a 23% increase in selling prices, partially offset by a 10% decrease in volume. Water Transmission sales and gross profit were favorably impacted by the mix of contracts produced during the quarter.
 
The company’s Tubular Products segment reported gross profit of $5.4 million (10.2% of segment net sales), which compares to gross profit of $2.4 million (8.8% of segment net sales) in the year-ago quarter. While gross profit increased with increased sales, it was tempered by higher steel costs as selling prices did not increase as rapidly as steel costs in the quarter.
 
The segment also reported sales of $52.8 million, a 90.7% increase from sales of $27.7 million in the year-ago first quarter, with the increase driven by increases in tons sold and selling prices per ton. The most significant increase in demand was for energy pipe resulting from increases in natural gas and oil drilling operations, which allowed the company to utilize additional capacity brought into production in Bossier City, La., over the course of 2010.
 
As of March 31, 2011, the backlog of orders was approximately $258 million, with the Water Transmission segment representing approximately $194 million and the Tubular Products segment representing approximately $64 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 expect Water Transmission sales to grow in 2011 compared to 2010," said Richard Roman, President and CEO. "We expect Tubular Product sales will also grow through 2011 as compared to 2010, primarily due to the additional production in Bossier City."
 
Northwest Pipe 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, industrial and traffic signpost systems. The Company is headquartered in Vancouver, Wash., and has ten manufacturing facilities across the United States and Mexico.