IPSCO earnings off slightly from record Q4
IPSCO Inc. on Tuesday (April 26) announced first quarter sales of $746 million, an increase of $263 million over the first quarter of 2004.
The companys net first quarter income was $154 million compared to $31 million in the corresponding quarter of 2004. However, in comparison to IPSCO's record 2004 fourth quarter, Q1 2005 sales decreased 4% and net income declined by $34.4 million. The company cited an increase in the effective tax rate from 28% to 36% as one of the main reasons behind the drop-off from Q4 2004.
IPSCO's first quarter pricing continued to increase on a majority of its products compared to the prior quarter. However, due to a product mix shift and declining
scrap surcharges, overall pricing remained essentially flat. First quarter shipments were down 9% year on year to 855800 tons.
Looking ahead, IPSCO's key product groups of
plate and energy
tubular products, with the exception of large diameter
pipe, continue to exhibit strong demand and pricing levels. The April price increase in
plate products has been fully implemented. In addition, the company intends to increase its
scrap surcharge $27 per ton in May.
IPSCO operates steel mills at three locations and
pipe mills at six locations in the United States and
Canada. The company boasts a combined annual steel making capacity of 3'500'000 tons. IPSCOs
tubular facilities produce a wide range of
tubular products that include line
pipe, oil and gas well casing and
tubing, standard
pipe and hollow structurals. The steelmaker can also further process steel at its five temper leveling and coil processing facilities.