IPSCO Reports 2Q Net Income Of $124.1 Million Vs $156.4 Million

Thursday, July 19, 2007 3:17 AM

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Edited Press Release

STOCKHOLM -(Dow Jones)- IPSCO Thursday reports second quarter financial information as it will constitute a substantial part of the consolidated results and assets of SSAB (Stockholm:SSAB-A) . John Tulloch, Head of Division IPSCO IPSCO reports a net income of $124.1 million for the second quarter of 2007 compared to $156.4 million for the second quarter of 2006 and $109.4 million in the first quarter of 2007.

Sales for the quarter were $1.06 billion, an increase of 18.2% or $162.9 million over the same quarter last year and 2.4% or $24.8 million over the prior quarter. Total shipments for the quarter were 1,075,000 tons, an increase of 74, 000 tons compared to last year and virtually unchanged from the prior quarter.

Steel mill product shipments of 678,000 tons decreased 3.5% from the second quarter of last year but increased 4.4% over the prior quarter.

Tubular shipments of 397,000 tons increased 32.8% over the prior year primarily due to the addition of the tubular volumes from the during 2006 acquired company NSG and a substantial increase in shipments of large diameter pipes. IPSCO's (NYSE:IPS) composite second quarter price of $983 per ton was up $90 per ton from a year ago and up $22 per ton over the prior quarter.

Gross income for the quarter was $242.2 million down from $261.6 million in the second quarter of last year. The decline in gross income from second quarter last year is due to higher scrap and steel mill production costs, expenses related to a Montpelier reheat furnace maintenance outage, and higher tubular production costs.

Selling, general and administrative expenses increased $33.5 million primarily due to the amortization of intangibles ($14.4 million), higher share based payment expense due to stock price change ($6.6 million) and ($6.3 million) with respect to transaction costs in connection with the sale of IPSCO (NYSE:IPS) .

Capital expenditures were $57.7 million for the second quarter, up $2.4 million from the $55.3 million spent in the first quarter.

Cash provided by operating activities was $34.4 million in the second quarter and the cash balance at the end of the quarter was $209.2 million.

" IPSCO's (NYSE:IPS) results for the first half of this year is in line with our expectations", said Olof Faxander, President and CEO of SSAB (Stockholm:SSAB-A) .

    (END) Dow Jones Newswires   07-19-07 0317   Copyright (c) 2007 Dow Jones & Company, Inc.

(Source: iStockAnalyst )

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