Northwest Pipe sees strong quarterly profit

Northwest Pipe sees strong quarterly profit

Northwest Pipe Company, a manufacturer of welded steel pipe, reported its net sales for the third quarter ended September 30 totaled $86.8 million, a 15 percent increase from third quarter 2004 sales of $75.3 million. The increase was due to the company’s high levels of operation as well as strong markets for Northwest Pipe’s products in its Water Transmission, Tubular Products, and Fabricated Products segments. The company reported a quarterly net income of $4.0 million, or $0.56 per diluted share, compared to $3.9 million, or $0.58 per diluted share, in the third quarter of 2004. Year-to-date net income totaled $10.0 million, compared to year-to-date net income for the same period last year of $8.13 million. Sales reached a new high in the third quarter, despite some storm-related shut downs and disruptions of raw material deliveries. Earnings were improved by a change in the company’s effective tax rate after federal and state legislative changes occurred during the quarter. Northwest Pipe’s effective tax rate was lowered to approximately 36 percent for the year. Looking ahead, the company expects a solid fourth quarter with a strong backlog for its Water Transmission Group; seasonal decline but improvement in margin for its Tubular Products Group; and strong market conditions as well as increased productivity for its Fabricated Products Group. Northwest Pipe’s Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products, used primarily for water transmission in the United States and Canada. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. Its Northwest Pipe Company is headquartered in Portland, Oregon and has nine manufacturing facilities in the U.S. and Mexico Fabricated Products Group manufactures propane tanks and other fabricated products.