Northwest Pipe revises Q3 predictions
Add Northwest
Pipe Company to the list of steelmakers anticipating lower-than-expected third quarter results.
Northwest president and CEO Brian Dunham said today, “A combination of events headed by Hurricane Katrina, related transportation issues, and delays at some of our key suppliers are delaying the receipt of critical raw materials. Additionally, we have closed our Houston facility temporarily in anticipation of Hurricane Rita as requested by authorities. Accordingly, we will not hit our revenue or earnings targets for the third quarter. We had expected to report record revenues in this quarter, but instead, have had to cut back
production temporarily at four of our facilities. Total revenues are now expected to be approximately the same as we reported last quarter.”
The company also announced that it will supply approximately $5.5 million of welded steel
pipe to High Country Pipeline of Penrose, Colorado for the Lewis & Clark Treated Water System near Sioux Falls, South Dakota.
Northwest
Pipe will provide approximately 38'000 feet (11'582 meters) of 54 or 48 inch (1.37 m or 1.22 m) diameter steel
pipe, expected to be manufactured in the Company's Denver, Colorado division with delivery scheduled to begin in the first quarter of 2006.
The company is optimistic about the future and is keeping a positive outlook for the rest of the year and for 2006.
“The year is developing nearly as we had expected,” said Dunham. “Overall, we continue to anticipate a strong performance for the year and a strong backlog going into 2006.”
Dunham expects price increases for its
tubular products to continue to reflect the rising cost of steel.