For the third consecutive quarter, Northwest Pipe Co. has posted a profit, fueling optimism for the Vancouver business.
An earnings report last week said the company made $1.2 million in profit in the first fiscal quarter of 2017, carrying the torch from the fourth fiscal quarter last year, which earned $3.8 million.
CEO Scott Montross said the company has heard that demand has been rising for industrial water pipes. Northwest Pipe builds pipes, ranging in size from 24 inches to 13 feet in diameter, to transmit high volumes of water under pressure.
Typically, Northwest Pipe’s clients are engineers who design and build water systems for municipalities, and Montross theorized those bodies of government are more focused on infrastructure repairs today than in years past.
“We’re seeing the new administration’s stance on infrastructure spending, that should help us build out the work into the future,” he said. “I think we’re seeing a tremendous deterioration in the water infrastructure in the United States based on age, and there has not been a lot of investment (to replace aging pipes) in recent years.”
Lower expenses are also helping Northwest Pipe out. Last year, the company sold a plant in Denver, from which it officially cut ties in February, Montross said. The move helped cut expenses, which helped the company secure a profit even as sales declined by nearly 25 percent.
Northwest Pipe, headquartered at 5721 S.E. Columbia Way, still has plants in California, Texas, Utah, Missouri, Kansas, West Virginia and the Mexican city of Monterrey. It employs between 550 to 570 people, Montross said.
The company also reported net loss per diluted share of $0.40.
Montross declined to disclose any projections for the rest of the year, but he did say that they expect the second fiscal quarter to be “slightly better in both revenue and gross profit.”
