On Monday, Vancouver, Washington-based Northwest Pipe Company announced its financial results for Q1 2012. Net sales for the quarter ended March 31, 2012 increased 27.6 percent to $142.2 million compared to $111.5 million in the quarter ended March 31, 2011. Net income for Q1 2012 was $4.7 million compared to $2.9 million for the same period in 2011.
Sales in Northwest Pipe's tubular products segment increased 58.6 percent to $83.7 million in Q1 2012 from $52.8 million in Q1 2011, driven by a 40 percent increase in tons sold, from 47,500 tons to 66,600 tons, and a 17 percent 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. While gross profit increased with the increase in sales, it was tempered by higher steel costs as selling prices did not increase as rapidly as steel costs in Q1.
Water Transmission sales decreased by 0.4 percent to $58.4 million in Q1 from $58.6 million in the same period a year ago. The decrease in sales was due to an 11 percent decrease in volume, partially offset by a 12 percent increase in selling price per ton.