Northwest Pipes will integrate Geneva Pipes and Precast, which it acquired last year, to strengthen organic growth. 

 

The engineered steel water pipeline systems manufacturer had a strong year that ended with a backlog of orders worth $258mn. In 2020, the company plans to build on this performance and expand its market share and product line, Scott Montrose, president and chief executive officer of Northwest, said in a statement.

 

However, the company expects weather delays and a slow start to fulfilling its orders will impact Q1 2020 profitability, even though revenue is expected to remain flat from the same quarter last year and gross margins are expected to grow 4-5pc.

 

In 2019, Northwest increased its sales by 62.3pc to $279.3mn compared with $172.1mn during the year prior. Sales surged after the company achieved an 81pc increase in production volumes over 2018, despite a 10pc decline in sales prices because of the product mix. The company said its tonnage during the year grew mainly because of higher demand and output from Ameron, which it acquired last year.

 

The company’s sales in Q4 2019 grew by 25.5pc to $72.2mn from $57.5mn during the same quarter in 2018, as more tons were sold to meet demand, despite a 12pc decrease in selling price per ton. 

Leave a Reply

Your email address will not be published.