Northwest Pipe reports decline in 3Q profit

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Vancouver-based Northwest Pipe Co. on Monday reported a third-quarter profit of $1 million. That compares with a profit of $3.4 million in the July-to-September period in 2012.

The company, which manufactures steel pipe primarily for drinking water systems, posted net sales of $103 million, a year-over-year decrease of 10.5 percent. The drop in net sales “was due to a 60 percent decrease in tons produced, offset by an increase in downstream fabrication services on pipe produced in prior periods,” the company said in a news release.

Scott Montross, president and CEO of Northwest Pipe, said the fourth quarter may prove more challenging than the third quarter. “We have not yet seen any significant improvement in our oil country tubular goods business, therefore we expect to see gross margin in the low positive single digits,” he said in the company’s news release.