Northwest Pipe (NWPX) 8-K Northwest Pipe Reports Record Results

Exhibit 99.1

EARNINGS RELEASE March 5, 2008

NORTHWEST PIPE REPORTS RECORD RESULTS

Portland, Oregon, March 5, 2008... Northwest Pipe Company (NASDAQ: NWPX) today reported the highest annual sales and earnings in its history. Sales for the year ended December 31, 2007 were $382.8 million compared to $346.6 million in 2006. Net income was $20.8 million, compared to $20.0 million in 2006. The 2006 results included a non-recurring gain on sale of approximately $7.7 million.

For the fourth quarter, the Company reported sales of $98.2 million compared to $97.5 million for the fourth quarter of 2006. Fourth quarter net income was $5.6 million, or $0.60 per diluted share, slightly lower than the $6.0 million recorded for the same quarter last year.

Water Transmission

Sales in the Water Transmission Group for 2007 were $274.8 million compared to $244.8 million for 2006. Gross profit for 2007 was $60.6 million, or 22.0% of sales, compared to $46.6 million, or 19.0% of sales in 2006.

For the fourth quarter, sales were $76.8 million, and gross profit was $17.4 million, or 22.7% of sales. This is the highest volume ever for this group and the highest gross profit margin reported for a quarter since 2003. “The Water Transmission Group’s performance was outstanding during the quarter,” said Brian W. Dunham, president and chief executive officer of the Company. “The higher margin reflects that performance, some incremental improvements in the market, and a positive product mix. While this margin performance won’t necessarily repeat every quarter, we do believe it is indicative of real improvements in our markets and our facilities.”

Tubular Products

The Tubular Products Group’s 2007 sales were $95.0 million, compared to $84.8 million in 2006. Gross profit was $10.0 million, or 10.5% of sales, compared to $8.9 million, or 10.5% of sales for 2006.

Sales were $17.9 million and gross profit was $1.0 million in the fourth quarter of 2007. “Although we met our objectives for the year, the fourth quarter for this Group was disappointing,” said Dunham. “Volume was down as we changed our direction in the energy market and we were significantly impacted by adverse weather in the Midwest. We do expect to see rapid improvement and margin should be back in the low double digit range in the first quarter of 2008.”

Fabricated Products

Sales in the Fabricated Products Group were $13.0 million for the year and $3.5 million in the fourth quarter. The Group lost $400,000 in the fourth quarter and ended the year with a loss of $350,000. The Company plans to include this business in the Water Transmission Group beginning in the first quarter of 2008. This reflects the internal management structure and strategic direction for this Group.

Outlook

The Company’s backlog is at an all time high at $212 million and the market continues to look very active in 2008. Consequently, the Company expects to improve upon 2007’s results in both sales and earnings over the course of the year. At this time, given the timing of projected market activity, the second half of the year should be significantly better than the first half and the second quarter should be stronger than the first quarter. “While we expect solid performance in the first quarter, we do not expect to match the earnings we are reporting today in the Water Transmission Group, which were based on historically high volume and a strong product mix” said Dunham.

“We expect a quick return to better margins and volume in the Tubular Products Group in the first quarter,” continued Dunham. “In spite of concerns about a slower overall economy, we see growth opportunities in non-residential construction products, energy products, and traffic signpost products in 2008.”

Over the past few months there has been a rapid increase in the cost of steel, the Company’s primary raw material. “Steel price increases cause different challenges in our two main groups,” said Dunham. “In Tubular Products, the challenge is to pass on these increases to customers. At this time, prices for our products are going up and we believe the market dynamics are strong enough to absorb expected increases. In the Water Transmission Group, the risk is that we might underestimate the cost of steel in fixed price contracts. While this is possible, we do not see significant exposure at this time.”

“Steel availability is an issue for both groups. In the first quarter of 2008, our overall revenues in Water Transmission will be somewhat lower because delivery lead times have increased. We believe this is only a near term timing problem. In general, for both groups, we believe we have adequate supply of steel to meet our needs, but we are watching this situation carefully,” concluded Dunham.

About Northwest Pipe Company

Northwest Pipe Company manufactures welded steel pipe and other products in three business groups. Its Water Transmission Group is the leading supplier of large diameter, high-pressure steel pipe products that are used primarily for water infrastructure in North America. Its Tubular Products Group manufactures smaller diameter steel pipe for a wide range of construction, agricultural, energy, industrial, and mechanical applications. Its Fabricated Products Group manufactures propane tanks, water transmission fittings, and other fabricated products. The Company is headquartered in Portland, Oregon and has nine manufacturing facilities across the United States and Mexico.

Forward-Looking Statements

Statements in this press release by Brian Dunham and statements in the “Outlook” section of this press release 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, 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.

Conference Call

The Company’s fourth quarter 2007 earnings conference call will be held on Wednesday, March 5, 2008, at 8:00 a.m. PST via live internet webcast. The conference broadcast can be accessed at the “Investor Relations” section of the Company’s website located athttp://www.nwpipe.com. For those unable to listen to the live broadcast, a replay will be available at the Investor Relations section of the Company’s website (www.nwpipe.com) or by dialing 800-925-5456 approximately one hour after the event.

CONTACT:	Brian Dunham
	Chief Executive Officer
	503-382-2332

NORTHWEST PIPE COMPANY

CONDENSED STATEMENTS OF OPERATIONS (Unaudited)

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

	Three Months Ended December 31					For the Year Ended December 31
	2007			2006		2007			2006
Net Sales:
Water Transmission	$	76,840		$	72,039	$	274,760		$	244,810
Tubular Products		17,910			20,991		95,019			84,756
Fabricated Products		3,459			4,469		13,045			17,025
Net Sales		98,209			97,499		382,824			346,591
Cost of Sales:
Water Transmission		59,402			58,152		214,196			198,209
Tubular Products		16,921			18,863		85,011			75,824
Fabricated Products		3,863			4,249		13,402			15,845
Total Cost of Sales		80,186			81,264		312,609			289,878
Gross Profit:
Water Transmission		17,438			13,887		60,564			46,601
Tubular Products		989			2,128		10,008			8,932
Fabricated Products		(404	)		220		(357	)		1,180
Gross Profit		18,023			16,235		70,215			56,713
Selling, General and Administrative		7,832			7,087		30,703			27,385
Gain on Sale of Asset		—			—		—			(7,674	)
Operating Income		10,191			9,148		39,512			37,002
Interest Expense, net		1,701			1,380		6,792			6,700
Income Before Income Taxes		8,490			7,768		32,720			30,302
Provision for Income Taxes		2,922			1,789		11,888			10,283
Net Income	$	5,568		$	5,979	$	20,832		$	20,019
Basic Earnings per Share	$	0.62		$	0.74	$	2.32		$	2.80
Diluted Earnings per Share	$	0.60		$	0.72	$	2.26		$	2.69
Shares Used in Per Share Calculation:
Basic		9,014			8,035		8,962			7,152
Diluted		9,264			8,349		9,235			7,446

CONDENSED SELECTED BALANCE SHEET AND OTHER DATA (Unaudited)

(Dollar amounts in thousands)

	December 31, 2007			December 31, 2006
Assets:
Cash and Cash Equivalents	$	234		$	4,259
Trade and Other Receivables, Net		49,300			68,425
Cost and Estimated Earnings in Excess of Billings on Uncompleted Contracts		121,058			74,353
Inventories		62,805			79,300
Other Current Assets		10,487			11,177
Total Current Assets		243,884			237,514
Property and Equipment, Net		179,977			160,776
Other Assets		29,702			26,161
Total Assets	$	453,563		$	424,451
Liabilities:
Current Maturities of Long-Term Debt	$	5,851		$	9,663
Accounts Payable		41,684			50,865
Accrued Liabilities		12,311			10,243
Billings in Excess of Cost and Estimated Earnings on Uncompleted Contracts		2,514			—
Total Current Liabilities		62,360			70,771
Long-Term Note Payable to Financial Institution		54,415			43,000
Other Long-Term Debt, Less Current Maturities		34,929			47,915
Other Liabilities		45,577			31,939
Total Liabilities		197,281			193,625
Stockholders’ Equity		256,282			230,826
Total Liabilities and Stockholders’ Equity	$	453,563		$	424,451
Other Data:
Working Capital	$	181,524		$	166,743
Capital Expenditures		22,971			58,428
Depreciation and Amortization		4,864			3,782
Debt as a Percent of Capitalization		27.1	%		29.5	%