IPSCO reports second quarter earnings

IPSCO reports second quarter earnings

Canadian steelmaker IPSCO Inc. reported its second quarter 2005 sales, driven in part by solid demand for steel plate, increased $548 million from the second quarter 2004. Net sales were $667 million for the second quarter 2005, an increase over the $119 million seen for the same period in 2004. Year-to-date net sales were reported as $1.4 billion, a 29 percent increase from same period in 2004. Net income for the second quarter was reported as $126.4 million, or $2.56 per diluted share, compared to $66.4 million, or $1.22 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $280.7 million while year-to-date 2004 net income was $97.7 million. IPSCO President and CEO David Sutherland said, "End user demand for steel plate remained strong in the first half of 2005 and OEM shipments in the second quarter were stable. However, market uncertainty over recent declines in steel pricing levels resulted in delayed service center inventory replenishment and order patterns exhibiting very short lead times." Commenting on IPSCO’s outlook, Mr. Sutherland said, "It is anticipated that with these maintenance efforts behind us, IPSCO will be well positioned in the fourth quarter to take advantage of the continued strength in IPSCO's steel markets, as well as a continued strong second half energy tubular market which now includes second half orders for ell over 100,000 tons of large diameter pipe." IPSCO has a combined annual steel making capacity of 3’500’000 tons. The Company's tubular facilities produce a wide range of tubular products including line pipe, oil and gas well casing and tubing, standard pipe and hollow structurals. Steel can also be further processed at IPSCO's five temper leveling and coil processing facilities.