July 25, 2007 -- Northwest Pipe Company reported the highest quarterly sales in its history. Sales for the second quarter of 2007 were $101.9 million compared to $77.9 million in the second quarter of 2006. Net income for the second quarter of 2007 was $5.7 million, or $0.61 per diluted share, compared to $7.3 million, or $1.03 per diluted share, in the second quarter of 2006, which included a $7.7 million pretax, non-recurring gain on the sale of the Riverside property. Excluding the sale of the Riverside property, results were stronger in the second quarter of 2007 than in the second quarter of 2006.
Sales in the Water Transmission Group for the second quarter of 2007 were $69.5 million compared to $51.3 million for the second quarter of 2006. Gross profit for the second quarter of 2007 was $15.1 million, or 21.7% of sales, compared to $9.8 million, or 19.1% of sales in the second quarter of 2006.
The Tubular Products Group's sales were $28.9 million in the second quarter of 2007 compared to $22.6 million for the second quarter of 2006. Gross profit was $3.6 million, or 12.5% of sales for the second quarter of 2007, compared to $2.7 million, or 11.7% of sales for the second quarter of 2006. This is the highest quarterly sales and gross profit for this Group since 2004.
Sales in the Fabricated Products Group were $3.5 million in the second quarter of 2007 compared to $3.9 million for the same period in 2006. Gross profit was $113,000, or 3.2% of sales in the second quarter of 2007, compared to $334,000, or 8.5% of sales for the second quarter of 2006.
The Company completed the purchase of Continental Pipe Manufacturing Company's Pleasant Grove, Utah manufacturing plant at the beginning of July 2007. "This facility's additional capacity will help support the Water Transmission Group's growth in the coming years," said Dunham. "This facility did not have much backlog when we acquired it, so we expect a slow start. However, by the beginning of 2008, we should start seeing the benefits of this acquisition."
The Company reported a strong backlog of $192.2 million as of June 30, 2007. "We continue to expect the total 2007 market to exceed the 2006 market with strong bookings and sales in the second half of 2007. Due to timing issues, we expect third quarter revenues to be down somewhat from this quarter, with a stronger fourth quarter. We continue to project record results for this Group," said Dunham.
Source: Northwest Pipe Company
