Northwest Pipe Company reported net income of $4.9 million in the third quarter of 2021, compared to $7.3 million in the third quarter of 2020. Net sales increased 9.0 percent to $84.6 million in the third quarter of 2021 from $77.6 million in the third quarter of 2020.
In a press release, the company said the increase in net sales was due to both higher pricing and shipments of precast concrete products, which contributed $2.6 million of the third quarter increase, as well as a 7 percent increase in net sales at the company's steel pipe facilities, which is attributable to a 17 percent increase in selling price per ton due to increased materials costs and changes in product mix, partially offset by a 9 percent decrease in tons produced resulting from changes in project timing.
"Our third quarter precast revenues remained at elevated levels with strong margins that have continued to rise. Our existing precast and [recently acquired] ParkUSA's order books are both at historically high levels as we move into the traditionally slower time of the year for precast shipments. The existing precast business is expected to have slightly higher revenue and margins than in the fourth quarter of 2020. We expect to carry strong momentum into 2022 with our precast related business," said Scott Montross, President and Chief Executive Officer of the Company.
As for an outlook, Montross said, "As we move into the time of the year affected by major holidays and weather events, we expect water transmission revenue to be a little lower than third quarter. However, we expect the upward movement of backlog and margins to continue through year end and lead to a stronger start to 2022."