December 02, 2008

Northwest Pipe Q2 net income up by 47% YoY

Northwest Pipe Company reported record sales, earnings and backlog for the second quarter of 2008. Sales in the second quarter ended June 30th 2008 were USD 112.1 million as compared to USD 101.9 million in the same quarter of 2007. Net income in the quarter was USD 8.4 million up by 47.36% YoY as compared to USD 5.7 million in the second quarter of 2007.

Water Transmission Results
Revenues for the Water Transmission Group were USD 74.9 million in the second quarter of 2008 compared to USD 73.0 million in 2007. Gross profit in 2008 was USD 14.8 million or 19.7% of sales, compared to USD 15.2 million or 20.8% of sales in 2007.

Mr Brian W Dunham president & CEO of Northwest Pipe said that "The Water Transmission Group's performance was solid throughout the quarter. Margins declined slightly compared to recent quarters, mainly due to increased raw material costs, but sales increased sequentially.”

Tubular Products Results
The Tubular Products Group's sales were USD 37.2 million in the second quarter of 2008 as compared to USD 28.9 million in the second quarter of 2007. Gross profit for the quarter was USD 9.8 million or 26.4% of sales as compared to USD 3.6 million or 12.5% of sales for 2007.

Mr Dunham said that "The Tubular Products results are clearly outstanding. In spite of continuing concerns of a slowing economy, we have seen strong demand from the energy, agriculture and construction markets. Our costs are obviously higher due to increasing raw material costs, but the market has been strong enough so far to support prices that offset these cost increases."

Over the past three months, the Company announced the following major projects:

1. USD 22.0 million Prairie Waters Project for the City of Aurora, Colorado

2. USD 19.0 million for the Lewis and Clark Regional Water System in South Dakota

3. USD 10.6 million energy products order for domestic gas gathering pipe and pipe for a storage tank farm in Ghana

4. USD 8.0 million for the Alternative Intake Project Pipeline for the Contra Costa Water District in California

Northwest Pipe Company manufactures welded steel pipe and other products in two business groups. Its Water Transmission Group is the leading supplier of large diameter, high pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of applications including construction, agricultural, energy, traffic and other commercial and industrial uses.