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Dec 31, 2019
Northwest Pipe Q4 2019 Earnings Report
Achieved highest quarterly gross profit since 2013, with significant increases from the fourth quarter of 2018.
Key Takeaways
Northwest Pipe Company reported strong profitability and backlog for the fourth quarter of 2019. Net sales increased by 25.5% to $72.2 million, and gross profit increased by 149.4% to $16.9 million. The company's backlog, including confirmed orders, reached a new year-end record of $258 million.
Net sales increased 25.5% to $72.2 million.
Gross profit increased 149.4% to $16.9 million.
Operating income increased 354.5% to $12.3 million.
Backlog including confirmed orders of $258 million, a new year-end record for the Company.
Northwest Pipe
Northwest Pipe
Forward Guidance
Revenue is projected to be in line with the first quarter of 2019 with gross margins that are four to five percentage points higher. The new Geneva plants are expected to add several million dollars in revenue.
Positive Outlook
- Strong market conditions
- Focus on margin over volume
- Cost reduction activity
- Acquisition of Geneva Pipe and Precast opens avenues for growth
- Adding innovative products that are expected to provide organic growth opportunities
Challenges Ahead
- First quarter to be affected by weather delays
- Jobs that are slow getting started
- Changes in demand and market prices for its products
- Price and availability of raw materials
- Operating problems at the Company’s manufacturing operations including fires, explosions, inclement weather, and natural disasters