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Northwest Pipe to Supply Pipe for Cooperative Water Supply Project
07/27/2009 - Northwest Pipe will supply pipe for the Raw Water Pipeline project, owned by Brushy Creek Regional Utility Authority.
Northwest Pipe Co. has received a commitment from S.J. Louis Construction Co. to supply pipe for the Raw Water Pipeline project, owned by Brushy Creek Regional Utility Authority.
The project will help to provide the cities of Cedar Park, Leander and Round Rock, Texas — partnered under the Brushy Creek Regional Utility Authority — the facilities necessary to access, treat and deliver water that is being supplied from Lake Travis under contracts with the Lower Colorado River Authority. Rather than three communities building three separate projects, this regional option affords the partners the opportunity to realize economies of scale by building a single water supply project.
Northwest Pipe will furnish approximately 24,000 linear feet of 78-inch steel water pipe and fittings. The value of the pipe order is approximately $6,200,000. The company expects to manufacture the pipe at its Saginaw facility, with delivery to begin in the fourth quarter of 2009.
The company also announced that it would report second quarter financial results on July 29, 2009. "Our Tubular Products Group did not meet our expectations in the second quarter," said Brian Dunham. "Our selling prices for this group continued to decline throughout the quarter instead of leveling off as we had expected. Our average selling price in the second quarter was down approximately 30% from the first quarter.
“While we are in the process of finalizing our results, obviously this will have a negative effect on both our revenues and gross margins. Effective cost control during the quarter helped to offset this impact.
“Preliminary results in the Water Transmission Group, in contrast to Tubular Products, are much closer to expectations," added Dunham.
“Preliminary results in the Water Transmission Group, in contrast to Tubular Products, are much closer to expectations," added Dunham.
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 applications including construction, agricultural, energy, traffic and other commercial and industrial uses. Headquartered in Vancouver, Wash., the company has ten manufacturing facilities across the United States and Mexico.
