Northwest Pipe Company has announced its financial results for the second quarter of 2011 ended June 30th 2011.
Net sales for the quarter ended June 30th 2011 increased by 49.6% to USD 143.8 million compared to USD 96.1 million in the quarter ended June 30th 2010. Gross profit was USD 17.9 million in the second quarter of 2011, an increase of USD 12.1 million from USD 5.8 million in the same quarter of 2010. Net income for the second quarter of 2011 was USD 5.4 million or USD 0.57 per diluted share compared to a loss of USD 1.4 million or per diluted share for the same period in 2010.
Water Transmission sales increased by 32.8% to USD 74.5 million in the second quarter of 2011 from USD 56.1 million in the second quarter of 2010. The increase in sales was due to a 16% increase in average selling price and a 14% increase in volume. Water Transmission gross profit increased to USD 12.0 million in the second quarter of 2011 from USD 5.0 million in the same quarter of the prior year. Water Transmission sales and gross profit was favorably impacted by the mix of contracts produced during the quarter.
Tubular Products sales increased 73.1% to USD 69.3 million in the second quarter of 2011 from USD 40.1 million in the second quarter of 2010, driven by a 48% increase in tonnes sold from 37,635 tonnes to 55,697 tonnes and a 17% increase in the average selling price per tonne. The most significant increase in demand was for energy pipe, resulting from increases in natural gas and oil drilling operations. This enabled us to utilize the additional capacity brought into production in Bossier City, Louisiana over the course of 2010. Tubular Products gross profit increased to USD 5.9 million (8.5% of segment net sales) in the second quarter of 2011 from USD 0.8 million (1.9% of segment net sales) in the same quarter of 2010. While gross profit increased with the increase in sales, it was tempered by higher steel costs as selling prices did not increase as rapidly as steel costs in the second quarter of 2011.
As of June 30th 2011, the backlog of orders was approximately USD 256 million, with the Water Transmission segment representing approximately USD 208 million and the Tubular Products segment representing approximately USD 48 million. The backlog includes confirmed orders, including the balance of projects in process, and projects for which the company has been notified that they have been the successful bidder even though a binding agreement has not been executed.
