Northwest Pipe (NWPX) 8-K Northwest Pipe Reports Third Quarter Results

EXHIBIT 99.1

EARNINGS RELEASE 3rd QUARTER 2003

NORTHWEST PIPE REPORTS THIRD QUARTER RESULTS

Portland, Oregon, October 22, 2003 . . . Northwest Pipe Company (NASDAQ: NWPX) today reported its results for the third quarter of 2003. Sales were $66.7 million compared to $69.7 million in the third quarter of 2002. Net income was $2.1 million, or $0.31 per diluted share for the third quarter of 2003, compared to $3.0 million or $0.44 per diluted share for the same quarter last year, and $437,000, or $0.06 per diluted share for the second quarter of 2003.

Sales in the Water Transmission Group were $39.7 million in the third quarter of 2003 compared to $46.6 million for the third quarter last year. The gross profit for this Group was $9.3 million, or 23.5% of sales for the third quarter of 2003, compared to $10.6 million, or 22.8% of sales last year. Gross profit is up substantially from the first two quarters of this year.

The Water Transmission Group’s volume for the third quarter of 2003, while below the same period last year, improved over the first two quarters of 2003. “Sales trended up this quarter, as expected,” noted Brian Dunham, chief executive officer. “We also had a large increase in margin percentage due to cost reductions and a favorable product mix.” Backlog decreased slightly in the third quarter to $79.2 million from $81.5 million at the end of the second quarter of 2003. “We expected the backlog to grow slightly in the third quarter of 2003,” said Dunham, “but, while bidding activity was generally improved, a few key projects were postponed and this impacted our ending backlog.” Given the backlog level at the beginning of the fourth quarter, the Company is expecting approximately the same volume in the fourth quarter as it recorded in the third quarter just ended.

The Tubular Products Group’s sales were $27.0 million in the third quarter of 2003 compared to $23.1 million reported for the third quarter last year. This is the highest quarterly sales volume in the last two years. Gross profit was $857,000 in the third quarter of 2003 compared to $1.6 million in the third quarter of 2002. “Gross profit in 2003 was below the same period last year,” Dunham reported. “However, gross profit has continued to be on an improving trend throughout 2003. At this time, we expect margins will continue to modestly improve through the end of the year,” concluded Dunham.

Northwest Pipe Company manufactures welded steel pipe in two business segments. Its Water Transmission Group is a leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water transmission in the United States and Canada. Its

Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial and mechanical applications. The Company is headquartered in Portland, Oregon and operates eleven manufacturing facilities across the United States and Mexico.

Statements in this press release, other than statements of historical fact, are “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as expects, anticipates, intends, plans, believes, sees, should, estimates and variations of such words and similar expressions are intended to identify such forward-looking statements. Such statements reflect management’s current views and estimates of future economic and market circumstances, industry conditions, company performance and financial results. Actual results could vary materially from the description contained herein due to many factors, including project delays, changes in bidding activity, market demand, operating efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, competitive environment, and other risks described from time to time in the Company’s reports to the Securities and Exchange Commission. The forward-looking statements we make today speak only as of today and we do not undertake any obligation to update any such statements to reflect events or circumstances occurring after today.

CONTACT: Brian Dunham Chief Executive Officer 503 382 2332

NORTHWEST PIPE COMPANY

STATEMENTS OF OPERATIONS

(Dollar and share amounts in thousands, except per share amounts)

	Three Months Ended September 30				Nine Months Ended September 30
	2003		2002		2003		2002
Net Sales:
Water Transmission	$	39,705	$	46,598	$	111,676	$	129,867
Tubular Products		27,018		23,067		74,236		68,446
Net Sales		66,723		69,665		185,912		198,313
Cost of Sales:
Water Transmission		30,372		35,979		87,440		102,053
Tubular Products		26,161		21,501		73,928		63,368
Total Cost of Sales		56,533		57,480		161,368		165,421
Gross Profit:
Water Transmission		9,333		10,619		24,236		27,814
Tubular Products		857		1,566		308		5,078
Gross Profit		10,190		12,185		24,544		32,892
Selling, General and Administrative		5,425		5,921		16,983		17,471
Operating Income		4,765		6,264		7,561		15,421
Interest Expense		1,384		1,299		3,984		3,965
Income Before Income Taxes		3,381		4,965		3,577		11,456
Provision for Income Taxes		1,326		1,961		1,403		4,525
Net Income	$	2,055	$	3,004	$	2,174	$	6,931
Basic Earnings per Share	$	0.31	$	0.46	$	0.33	$	1.06
Diluted Earnings per Share	$	0.31	$	0.44	$	0.33	$	1.02
Shares Used in Per Share Calculation:
Basic		6,555		6,551		6,551		6,540
Diluted		6,687		6,803		6,659		6,767