Northwest Pipe Co. expects a challenging fourth quarter amid a
low water transmission backlog and thin oil country tubular
goods (OCTG) margins.
"Rising coil costs,
stagnant pipe prices and still depressed demand continue to put
pressure on OCTG margins," president and chief executive
officer Scott Montross said during a third-quarter earnings
conference call, adding that this represented a "perfect storm"
for the segment.
In water transmission,
bidding activity is healthy but few projects have been
finalized and the market remains very competitive, he said.
He declined to
elaborate on the companys announcement that it was
looking at options for its OCTG business (
amm.com, Oct. 1), but said no decision has been
The company reiterated
its view that there has been little impact so far from the
recently filed trade case on OCTG, but this is expected to
change once the Commerce Department makes its preliminary
decisions on the anti-dumping cases in mid-February.
Wash.-based company recorded net income of $1.02 million during
the quarter, down 70.1 percent from $3.4 million a year
sales fell 26.2 percent to $46.8 million during the quarter.
Meanwhile, tubular product sales jumped 8.9 percent to $56.2
million in the same comparison, driven by a 19.8-percent rise
in tons sold that was partially offset by a 9-percent drop in
average selling prices.
volumes were boosted by orders for the Double H project (
amm.com, Nov. 4), which total about 36,000 tons,
according to Montross. "Weve arrived at being able to
make these kinds of projects now" due to upgrades at the
companys Atchison, Kan., facility.