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Dec 31, 2020
Northwest Pipe Q4 2020 Earnings Report
Reported a decrease in net sales and gross profit due to lower production volume, offset by contributions from Geneva Pipe and Precast Company.
Key Takeaways
Northwest Pipe Company announced its Q4 2020 financial results, with net sales decreasing by 4.0% to $69.4 million and gross profit decreasing by 26.9% to $12.4 million. Net income was $5.2 million, or $0.53 per diluted share. The results reflect lower production volume at legacy steel pipe facilities, partially offset by the margin contribution from Geneva.
Net sales decreased 4.0% to $69.4 million due to a decline in legacy steel pipe sales, partially offset by Geneva's contribution.
Gross profit decreased 26.9% to $12.4 million primarily due to lower production volume at legacy steel pipe facilities.
Net income was $5.2 million, or $0.53 per diluted share, compared to $12.0 million, or $1.22 per diluted share, in Q4 2019.
Backlog, including confirmed orders, was $221 million.
Northwest Pipe
Northwest Pipe
Forward Guidance
The company expects the first quarter to be challenging due to volatility and delivery disruptions in the steel market, extreme weather conditions, and bidding delays. However, they anticipate market conditions to stabilize as they move through the early part of 2021, driven by a strong bidding calendar for steel pressure pipe and a robust precast concrete order book.
Positive Outlook
- Strong 2021 bidding calendar for the steel pressure pipe business.
- Precast concrete order book is strong even during the seasonally slow time of the year.
- Expect market conditions to stabilize as we move through the early part of 2021.
Challenges Ahead
- First quarter expected to be challenging.
- Volatility and delivery disruptions in the steel market.
- Extreme weather conditions in various parts of the country.
- Period-specific effects of bidding delays in the steel pressure pipe business.