IPSCO profit down for the quarter, up for the year

IPSCO profit down for the quarter, up for the year

Leading North American pipe producer IPSCO today reported its net sales for Q4 2005 were $852.2 million, up 6 percent from $801.1 million in Q4 2004. Net earnings were $179.2 million, or $3.52 per share, down from $199.1 million, or $3.91 per share earned in the same period the previous year. YTD net income was $585.8 million, or $11.96 per diluted share, compared to $454.9 million, or $8.69 per diluted share, in 2004. Higher costs trimmed quarterly earnings, however, IPSCO's net income for the fiscal year was the company's highest ever, thanks to the thriving energy industry which provided higher demand for pipe and tubular goods. "Our challenge in 2005 was to sustain the record financial results achieved in 2004," said IPSCO president and CEO David Sutherland. "Our employees and facilities responded with another record-setting performance where we were able to increase earnings per share by 38 percent." Looking forward, the company predicts, "We expect high oil and gas prices to continue to drive high rig counts and demand for OCTG products," as stated in the company's press release. "The current 2006 forecasts suggest that drilling activity will increase 6-8 percent over 2005 which was itself a very strong year. Large diameter pipe bookings have been very strong and we now expect our spiral pipe facilities to be running at full capacity throughout 2006." Canadian steelmaker and fabricator IPSCO Inc. has facilities in five Canadian provinces and seven US states. In July 2000, IPSCO opened its executive offices in Lisle, Illinois.