Vancouver-based steel pipe manufacturer Northwest Pipe Co. released its second-quarter financial results Tuesday, showing strong growth in gross profit and little growth in net sales.
Net sales increased only 1.1 percent to $70 million compared to $69.2 million this time last year, according to a Tuesday news release from the company. Gross profit increased 57.7 percent to $13 million from $8.2 million in a year, due primarily to product pricing increases. Net income was $6.1 million, or $0.61 per diluted share.
Legacy revenue decreased compared to the second quarter of 2019, due to a 31 percent decrease in tons produced. The change was largely due to the shutdown of the company’s manufacturing facility in San Luis Rio Colorado after Mexican authorities deemed it nonessential and ordered the plant to close in April.
Mexican authorities allowed partial operations to resume on June 1, and President and CEO of Northwest Pipe Company Scott Montross said all production facilities are now operating amidst the pandemic and working to get to normal production levels.