Northwest Pipe Company announced Wednesday its financial results for the quarter ended March 31, 2015. Net sales from continuing operations for the quarter ended March 31, 2015 increased 2.7 percent to $84.9 million compared to $82.6 million for the quarter ended March 31, 2014. Gross profit was $3.9 million (4.6 percent of net sales from continuing operations) in the first quarter of 2015, a decrease from $4.3 million (5.2 percent of net sales from continuing operations) in the first quarter of 2014. Net loss from continuing operations for the first quarter of 2015 was $2.1 million or $0.22 per diluted share compared to net loss from continuing operations of $1.2 million or $0.13 per diluted share for the first quarter of 2014.
Tubular Products sales from continuing operations decreased 27.8 percent to $28.6 million in the first quarter of 2015 from $39.6 million in the first quarter of 2014, driven by a 27 percent decrease in tons sold to 28,300 tons in the first quarter of 2015 from 39,000 tons in the first quarter of 2014. Tubular Products had a gross loss of $3.6 million (negative 12.7 percent of segment net sales from continuing operations) in the first quarter of 2015 compared to a segment gross profit of $2.6 million (6.7 percent of segment net sales from continuing operations) in the first quarter of 2014. Gross profit was negatively impacted by reduced sales volumes, the mix of products sold during the quarter and a $2.8 million lower of cost or market adjustment to the Company's inventory during the first quarter of 2015.
“Crude oil prices, a declining steel market and extreme levels of imports led to the April production curtailment for our Tubular Products segment,” said Scott Montross, Northwest Pipe President and CEO. “These issues are expected to continue to have near term impacts on order intake, production and inventory values and drive negative mid-single digit margins in the second quarter.”