On Monday, Vancouver, Washington-based Northwest Pipe Company announced that in Q2 2013, net sales decreased 10.9 percent to $116.7 million compared to $131 million in Q2 June 30, 2012. Net income for Q2 2013 was $5.6 million compared to $3.6 million for Q2 2012.
Water Transmission net sales decreased by 1.5 percent to $58.1 million in Q2 2013 from $59.1 million in Q2 2012. The decrease in net sales was due to a 34 percent decrease in tons produced, offset by a 49 percent increase in average selling price per ton.
Tubular Products net sales decreased 18.6 percent to $58.6 million in Q2 from $72 million in Q2 2012, driven by a 13 percent decrease in average selling price per ton and a 6 percent decrease in tons sold from 56,500 tons in Q2 2012 to 52,900 tons in Q2 2013.
"Based on current market conditions, we believe the third quarter will be our weakest quarter in 2013. The Water Transmission segment will have significantly lower net sales and gross profit as indicated by the relatively low backlog at the end of the second quarter," said Scott Montross, President and Chief Executive Officer of the Company. "While a trade case has been filed against nine nations importing oil country tubular goods into the United States, we have not yet seen a significant improvement in sales prices or volumes. In Tubular Products we expect to see gross margin in the low positive single-digits."