Perma-Pipe Sales Rise 24% as Ohio Facility Ramps Up
Perma-Pipe International Holdings Inc. reported higher second-quarter sales and backlog as the supplier of anti-corrosion coatings and engineered piping systems continued to expand its manufacturing footprint.
Net sales totaled $59.6 million for the quarter ended July 31, up 24.4% from $47.9 million during the same period last year. Perma-Pipe attributed the increase to higher sales volumes in North America and the Middle East and North Africa region. Gross profit increased 20.7% to $17.4 million.
Net income attributable to common stock was $2.5 million, or $0.31 per diluted share, compared with $0.9 million, or $0.10 per diluted share, a year earlier. The latest quarter included a $3.9 million charge related to an uncollectible customer receivable and an approximately $1.6 million discrete tax benefit related to that receivable.
Backlog reached $142.3 million at July 31, compared with $121.6 million at the end of January. The company previously reported more than $67 million in second-quarter orders, including oil and gas awards in Canada and the MENA region.
Perma-Pipe said it has commenced operations and ramped production at its new Ohio facility to support U.S. demand. It is also expanding its Qatar facility and, after the quarter ended, entered into a memorandum of understanding to form a joint venture in Jordan supporting water, energy, oil and gas and infrastructure projects.
Perma-Pipe supplies anti-corrosion coatings, pre-insulated piping, leak detection systems and related products for energy, infrastructure, industrial and water-transmission markets.
The results show continued investment in corrosion-protection capacity serving major energy and infrastructure markets. PCI tracks protective and corrosion-control technologies through its Industrial Coatings coverage.
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