IPSCO earnings off slightly from record Q4

IPSCO earnings off slightly from record Q4

IPSCO Inc. on Tuesday (April 26) announced first quarter sales of $746 million, an increase of $263 million over the first quarter of 2004. The company’s net first quarter income was $154 million compared to $31 million in the corresponding quarter of 2004. However, in comparison to IPSCO's record 2004 fourth quarter, Q1 2005 sales decreased 4% and net income declined by $34.4 million. The company cited an increase in the effective tax rate from 28% to 36% as one of the main reasons behind the drop-off from Q4 2004. IPSCO's first quarter pricing continued to increase on a majority of its products compared to the prior quarter. However, due to a product mix shift and declining scrap surcharges, overall pricing remained essentially flat. First quarter shipments were down 9% year on year to 855’800 tons. Looking ahead, IPSCO's key product groups of plate and energy tubular products, with the exception of large diameter pipe, continue to exhibit strong demand and pricing levels. The April price increase in plate products has been fully implemented. In addition, the company intends to increase its scrap surcharge $27 per ton in May. IPSCO operates steel mills at three locations and pipe mills at six locations in the United States and Canada. The company boasts a combined annual steel making capacity of 3'500'000 tons. IPSCO’s tubular facilities produce a wide range of tubular products that include line pipe, oil and gas well casing and tubing, standard pipe and hollow structurals. The steelmaker can also further process steel at its five temper leveling and coil processing facilities.