IPSCO Reports First Quarter Earnings

    (*)Results Are Reported in U.S. Dollars on a U.S. GAAP Basis(*)

    LISLE, Ill., April 24 /CNW/ -- IPSCO Inc. (NYSE/TSX: IPS) announced today
net income of $109.4 million ($2.30 per diluted share) for the first quarter
of 2007 compared to $150.7 million ($3.12 per diluted share) for the first
quarter of 2006 and $139.0 million ($2.92 per diluted share) in the fourth
quarter of 2006.
    Earnings per diluted share on an adjusted basis were $2.65, at the high
end of our guidance. The guidance excluded the amortization of the fair value
increment allocated to NS Group inventory ($0.33 per diluted share), foreign
exchange losses ($0.01 per diluted share), the impact of share price
appreciation on stock based compensation valuations ($0.10 per diluted share)
and effective tax rate changes (($0.09) per diluted share).
    Sales for the quarter reflected the addition of a full quarter of NS
Group sales and were a record $1.03 billion, an increase of 14.3% or $128.8
million over the same quarter last year and 5.0% or $49.4 million over the
prior quarter. Total shipments for the quarter were 1,073,000 tons, a new
quarterly record for IPSCO and an increase of 68,000 tons compared to last
year and 53,000 tons higher than the prior quarter.
    Steel mill product shipments of 649,000 tons were relatively flat,
decreasing 1.4% from the first quarter of last year and 2.2% from the prior
quarter. Tubular shipments of 424,000 tons increased 22.3% over the prior year
and 18.8% over the prior quarter primarily due to the addition of NS Group
tubular volumes and greater large diameter shipments. IPSCO's composite first
quarter product price of $961 per ton was up $63 per ton from a year ago and
within $2 per ton of the record set in the prior quarter.
    Gross income for the quarter was $228.2 million down from $279.5 million
in the first quarter of last year. The decline in gross income from first
quarter last year is due to the amortization of the remaining $24 million fair
value increment allocated to NS Group inventory, higher scrap costs, expenses
related to the Mobile maintenance outage, and higher tubular product costs.
    "I am pleased with our first quarter. End-user demand was strong for
plate, and while demand for small diameter energy tubular products was lower
than last quarter, we expect shipments will improve as inventories at service
centers and distributors reach desired levels," said David Sutherland, IPSCO
President and Chief Executive Officer. "Operating highlights of the first
quarter include: significant progress in our inventory reduction program;
successful completion of the Mobile maintenance outage, where the upgrades
installed are showing immediate benefits, and the award of 530,000 tons of
large diameter pipe orders."
    Selling, general and administration expenses were $48.7 million for the
quarter, $16.4 million higher than the same period last year and $14.0 million
higher than the prior quarter. The amortization of intangibles related to the
NS Group acquisition was $14.4 million, or $0.20 per share, this quarter as
compared to $4.7 million in the fourth quarter of 2006.  The pre-tax impact of
share price appreciation was $7.4 million in the first quarter of this year as
compared to $2.8 million last quarter and $4.7 million in the first quarter of
    The first quarter 2007 effective tax rate of 33.5% was lower than the
prior year and slightly higher than the prior period. The difference in the
effective tax rate impacted net earnings by $0.19 and ($0.02) per diluted
share as compared to those periods respectively. As compared to last year, the
first quarter earnings benefited by $0.03 per diluted share from share
repurchase activity during 2006.
    Operating income in the first quarter of 2007 was $167 per ton compared
to $246 per ton in the first quarter of last year as amortization expense of
fair value increments relating to the tangible and intangible assets acquired
in the NS Group acquisition reduced operating income by $42 per ton, increased
cost of scrap was $23 per ton, and costs related to the Mobile maintenance
outage were $13 per ton.

    Solid end user demand for our steel mill products is continuing while
service centers returned to a buying mode late in the first quarter. IPSCO's
steel mill capacity is fully committed through the second quarter and we have
no scheduled outages in the second quarter. The pricing environment has
improved on plate and wide coil however higher scrap costs will impact
    We expect high oil and gas prices to continue to drive high U.S. rig
counts. However, due to spring break up, we expect second quarter OCTG sales
volumes in Canada will be seasonally weaker than the first quarter with
improvement in the last half of the year. In addition, our spiral pipe
facilities are now booked at full capacity through May 2009.
    Excluding foreign exchange gains or losses and share price volatility,
and assuming an effective tax rate of 33.5%, we forecast second quarter
earnings to be in the range of $2.60 to $2.80 per diluted share.

    IPSCO has scheduled the live webcast of its 2007 first quarter conference
call at 10:00 AM EDT on Tuesday, April 24, 2007. During the call IPSCO
President and CEO, David Sutherland, Senior Vice President and CFO, Vicki
Avril and Executive Vice President -- Steel and Chief Commercial Officer, John
Tulloch will discuss IPSCO Inc.'s first quarter results.
    Persons wishing to listen to the web cast may access it in the Investor
Information, Presentations section on the Company's website at
http://www.ipsco.com. The conference call, including the question and answer
portion, will also be archived on IPSCO's web site for three months.

    IPSCO is a leading low cost producer of energy tubulars and steel plate
in North America with an annual liquid steel making capacity of 4.3 million
tons. The Company operates four steel mills, eleven pipe mills, nine product
finishing facilities and nine scrap processing centers in 25 geographic
locations across the United States and Canada. IPSCO's pipe mills produce a
wide range of seamless and welded energy tubular products including oil & gas
well casing and tubing, line pipe, drill pipe, large diameter transmission
pipe, standard pipe and hollow structurals. The Company also manufactures
premium connections for oil and natural gas drilling and production under its
ULTRA(TM) brand name. IPSCO trades as "IPS" on both the New York and Toronto
Stock Exchanges. For more information about IPSCO, log on to

    This press release contains forward looking statements within the meaning
of Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. The words "believes",
"expect", "will", "can" and other expressions that are predictions of or
indicate future events, trends or prospects and which do not relate to
historical matters identify forward-looking statements. Although IPSCO Inc.
believes that the anticipated future results, performance or achievements
expressed or implied by the forward-looking statements and information are
based upon reasonable assumptions and expectations, the reader should not
place undue reliance on forward-looking statements and information because
they involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the Company to
differ materially from anticipated future results, performance or achievement
expressed or implied by such forward-looking statements and information.
Factors that could cause actual results to differ materially from those
contemplated or implied by forward-looking statements include: weather
conditions affecting the oil patch; drilling rig availability; demand for oil
and gas; supply, demand and price for scrap metal and other raw materials;
supply, demand and price for electricity and natural gas; demand and prices
for products produced by the Company; general economic conditions; the extent
and timing of our ability to integrate and obtain enhancements and cost
savings following the acquisition of NS Group, Inc.; and changes in financial
markets. These and other factors are outlined in IPSCO's regulatory filings
with the Securities and Exchange Commission and Canadian securities
regulators, including those in IPSCO's 2006 Form 10-K, particularly as
discussed under the heading "Statement Regarding Forward Looking Information"
and "Risk Factors Related To Our Industry". The Company undertakes no
obligation to publicly update or revise any forward-looking statements or
information, whether as a result of new information, future events or

                                  IPSCO Inc.
                CONSOLIDATED STATEMENTS OF INCOME (unaudited)
    (thousands of United States Dollars except for per share and ton data)

                                                   For the Three Months Ended
                                                   March 31          March 31
                                                     2007              2006
    Plate and Coil Tons Produced
     (thousands)                                      829.8             895.6
    Finished Tons Shipped
     (thousands)                                    1,073.3           1,005.4

    Sales                                      $  1,031,686      $    902,896
    Cost of sales                                   803,470           623,429
    Gross income                                    228,216           279,467
    Selling, general and administration              48,743            32,386
    Operating income                                179,473           247,081
    Other expenses (income):
       Interest on long-term debt                    16,124             5,833
       Net interest income                           (1,855)           (7,015)
       Foreign exchange loss                            933             1,324
       Other                                           (373)             (112)
    Income Before Income Taxes                      164,644           247,051
    Income Tax Expense                               55,201            96,350
    Net Income                                 $    109,443      $    150,701
    Earnings per Common
     Share               -- Basic              $       2.33      $       3.15
                         -- Diluted            $       2.30      $       3.12
    Dividends Declared per Common Share
     (Canadian dollars)                        $       0.20      $       0.18
    Common shares outstanding (thousands)            47,215            48,073
    Denominator for Diluted Earnings per
     Common Share (thousands)                        47,578            48,350

                                  IPSCO Inc.
                             EARNINGS (unaudited)
                     (thousands of United States Dollars)

                                                   For the Three Months Ended
                                                   March 31          March 31
                                                     2007              2006
    Retained Earnings at Beginning of
     Period                                    $  1,875,067      $  1,341,659
       Net Income                                   109,443           150,701
       Dividends on Common Shares                    (8,087)           (7,450)
    Retained Earnings at End of Period         $  1,976,423      $  1,484,910

                                  IPSCO Inc.
                     (thousands of United States Dollars)

                                                   For the Three Months Ended
                                                   March 31          March 31
                                                     2007              2006
    Operating Activities
       Net income                              $   109,443       $   150,701
       Adjustments to reconcile net
        income to net cash flows from
        operating activities
         Stock-based compensation                    2,489             1,237
         Depreciation of capital assets             26,788            20,083
         Amortization of intangible assets          14,428                --
         Amortization of deferred charges            1,271               461
         Deferred income taxes                     (18,475)              804
       Changes in operating assets and
         Accounts receivable, less
          allowances                                47,129           (12,725)
         Inventories                                84,053           (43,356)
         Other                                      10,932             1,435
         Accounts payable and accrued
          charges                                    9,190           (27,708)
         Change in pension liability                  (795)             (178)
         Income taxes payable                       62,770            29,352
    Net cash provided by operations                349,223           120,106
    Investing Activities
       Expenditures for capital assets             (55,194)          (30,599)
       Other                                            --               (94)
       Acquisition of business                      (2,281)               --
    Net cash used for investing
     activities                                    (57,475)          (30,693)
    Financing Activities
       Common share dividends                       (8,087)           (7,450)
       Common shares issued pursuant to
        share option plan                               45               447
       Repayment of operating line                 (44,821)               --
       Repayment of long-term debt                 (10,302)           (4,991)
    Net cash used for financing
     activities                                    (63,165)          (11,994)
    Effect of exchange rate changes on
     cash and cash equivalents                         333             2,841
    Increase in Cash and Cash Equivalents          228,916            80,260
    Cash and Cash Equivalents at
     Beginning of Period                            34,377           583,064
    Cash and Cash Equivalents at End of
     Period                                    $   263,293       $   663,324

                                  IPSCO Inc.
                   CONSOLIDATED BALANCE SHEETS (unaudited)
                     (thousands of United States Dollars)

                                                   March 31        December 31
                                                     2007              2006
    Current Assets
       Cash and cash equivalents               $    263,293      $     34,377
       Accounts receivable, less
        allowances                                  405,552           449,736
       Inventories                                  815,157           896,477
       Income taxes recoverable                          --            30,031
       Deferred income taxes                         46,930            40,689
       Other                                         18,485            28,703
                                                  1,549,417         1,480,013
    Non-Current Assets
       Capital assets                             1,337,644         1,313,517
       Goodwill and other intangible
        assets                                    1,290,684         1,298,144
       Other                                         38,293            40,079
                                                  2,666,621         2,651,740
    Total Assets                               $  4,216,038      $  4,131,753

    Current Liabilities
       Bank indebtedness                       $         --      $     45,000
       Accounts payable and accrued
        charges                                     357,583           354,207
       Income and other taxes payable                32,737                --
       Current portion of long-term debt             35,212            33,379
                                                    425,532           432,586
    Long-Term Liabilities
       Long-term debt                               867,667           879,675
       Other                                         75,040            68,639
       Deferred income taxes                        478,190           491,052
                                                  1,420,897         1,439,366
    Shareholders' Equity
       Common shares                                414,979           414,934
       Contributed surplus                           27,520            25,031
       Retained earnings                          1,976,423         1,875,067
       Accumulated other comprehensive
        loss                                        (49,313)          (55,231)
                                                  2,369,609         2,259,801
    Total Liabilities and Shareholders'
     Equity                                    $  4,216,038      $  4,131,753

                                  IPSCO Inc.
                                SELECTED DATA

                                                    2007              2006
                                               First Quarter     First Quarter

    Liquid Steel Production
     (in thousands)
    Regina                                            280.9             283.8
    Koppel                                             83.1                NA
    Montpelier                                        325.4             323.8
    Mobile                                            291.5             360.4
       Total Tons -- Production                       980.9             968.0

    Product Production
     (in thousands)
    Discrete Plate & Coil                             829.8             895.6
    Cut Plate                                         145.9             155.5
       Total Steel Mill                               975.7           1,051.1

    Large Diameter                                    116.5              80.7
    Small Diameter                                    239.4             245.6
    Seamless                                           69.5                NA
       Total Tubulars                                 425.4             326.3
       Total Tons -- Production                     1,401.1           1,377.4

    Shipments (in thousands)
    Discrete Plate & Coil                             504.0             507.9
    Cut Plate                                         144.9             150.4
       Total Steel Mill                               648.9             658.3

    Energy Tubulars                                   271.7             208.8
    Large Diameter                                     89.1              79.5
    Non-Energy                                         63.6              58.8
       Total Tubulars                                 424.4             347.1
       Total Tons -- Shipments                      1,073.3           1,005.4

    Geographic Sales Mix
     (millions of US Dollars)
    United States                                    $733.9            $562.1
    Canada                                            297.8             340.8
        Total                                      $1,031.7            $902.9

    Sales By Product
     (millions of US Dollars)
    Steel Mill Products                              $499.5            $504.2
    Tubular Products                                  532.2             398.7
        Total                                      $1,031.7            $902.9

    Average Selling Price per Ton
     (in US Dollars)
    Steel Mill Products                                $770              $766
    Tubular Products                                  1,254             1,149
        Total                                          $961              $898

    Operating Income per Ton
     (in US Dollars)                                   $167              $246

    Purchased Steel-Tons (in thousands)                  90               148


For further information:

For further information: Tom Filstrup, Director, Investor Relations, of 
IPSCO Inc., +1-630-810-4772, tfilstrup@ipsco.com Web Site:

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