IPSCO Sees Mixed Figures for Quarter

IPSCO Inc. reported second quarter net income of $31.6 million, 107 percent over the year earlier period of $15.3 million and 269 percent ahead of the year's first quarter when the figure was $8.5 million. "The results were buoyed up by the impact of one-time events, primarily the taking into current income of most of the benefits from the settlement of a lawsuit," stated Roger Phillips, president and CEO. Net income was $28.7 million, or 70 cents per share.

Average unit selling prices fell ten percent from the second quarter of 2000 reflecting continuing price pressure from an industry wide inventory overhang related to import surges experienced in 2000. Average unit selling prices for the quarter fell five percent from the first quarter of 2001.

Sales were $219.6 million, down seven percent from the second quarter of last year and down six percent from the first quarter of this year primarily because of the seasonal impact of the sales of Canadian oil country tubular goods.

Steel mill product shipments at 248,600 tons were up ten percent in volume compared to the first quarter of this year.

Phillips added that, "The outlook in terms of volumes for IPSCO's last half remain at the current strong level. Despite recent drops in oil and gas prices there remains a strong financial incentive to drill for oil and gas in Canada and the United States which potentially will translate into hefty sales of oil and gas well casing and tubing as well as small diameter line pipe. Demand on IPSCO facilities for mid and large diameter line pipe, somewhat lethargic in the first half, is expected to increase substantially for the last half of the year. Bookings for non-energy products, both flat rolled and tubular, have remained steady. From a price perspective attempts by IPSCO to regain the erosion caused by imports of hot rolled coil and plate in the last half of 2000 and early 2001 are bearing fruit, albeit slowly." Phillips concluded that, "Overall, IPSCO expects, neglecting the impact of product mix changes, improved price realizations, although they may be modest, in the second half."