|FORTERRA, INC. filed this Form 10-Q on 11/09/2017|
Water Pipe & Products
For the three months ended September 30, 2017, net sales were $196.0 million, a decrease of $29.6 million or 13.1% from $225.6 million for the three months ended September 30, 2016. The decrease was partially attributable to the sale of the U.S. pressure pipe business in July 2017 which had the effect of reducing net sales by $8.9 million, as well as a decrease in the U.S. and Canada concrete and steel pressure pipe businesses of $20.7 million. Net sales in the third quarter of 2017 were negatively impacted by hurricane Harvey and lower demand from municipal projects, partially offset by higher average prices of products sold.
Gross profit was $30.9 million in the three months ended September 30, 2017, a decrease of $18.5 million or 37.4% from $49.4 million in the three months ended September 30, 2016. The ductile iron pipe portion of the segment was impacted by higher scrap costs that were not fully offset by an increase in average sales prices. Concrete and steel pressure pipe gross profit benefited in the prior year period from a large, higher margin project in Canada that was completed in the fourth quarter of 2016.
For the three months ended September 30, 2017, income (loss) from continuing operations before income taxes and EBITDA decreased by $31.6 million due to the loss generated by the U.S. Pressure Pipe Divestiture in July 2017.