Northwest Pipe Company reports $7.3 million in net income for Q3

Thursday, 05 November 2020 20:53:50 (GMT+3)   |   San Diego
       

Northwest Pipe Company announced its financial results for the third quarter ended September 30, 2020. Net sales increased 3.2 percent to $77.6 million in the third quarter of 2020 from $75.2 million in the third quarter of 2019 due to a $12.5 million contribution from the company's acquired Geneva Pipe and Precast Company operations.

Net income was $7.3 million in the third quarter of 2020, compared to $10.7 million in the third quarter of 2019. The third quarter of 2020 included increased selling, general, and administrative expenses of $0.8 million primarily due to the addition of Geneva and higher compensation expenses.

Scott Montross, President and CEO, commented, "Despite experiencing COVID–19 related project and bidding delays in the second half of the year, our third quarter produced solid revenue and a gross profit margin that exceeded 20 percent. The bidding delays caused our quarter ending backlog to moderate down to $231 million, a level that is still very high by historic standards and that represents the ninth straight quarter over $200 million. Due to customer driven project delays, we expect fourth quarter revenues and the resulting gross profit margin to be lower than the third quarter. However, as we look into 2021, the structure of our business remains strong."


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