IPSCO Posts Profitable Quarter

Non-recurring Event Buoys Quarterly Results

Please Note That IPSCO Results are Reported in U.S. Dollars

Lisle, Illinois - 17 July 2001 - IPSCO Inc. (NYSE/TSE:IPS) announced today that its second quarter net income was $31.6 million, 107 percent over the year earlier period of $15.3 million and 269 percent ahead of the year's first quarter when the figure was $8.5 million. "The results were buoyed up by the impact of one-time events, primarily the taking into current income of most of the benefits from the settlement of a lawsuit," stated Roger Phillips, President and Chief Executive Officer. Net income available to common shareholders was $28.7 million, or 70 cents per share. 

Average unit selling prices fell ten percent from the second quarter of 2000 reflecting continuing price pressure from an industry wide inventory overhang related to import surges experienced in 2000. "In particular, price erosion was experienced in hot rolled coil and discrete plate, non-energy tubulars, and cut-to-length products from IPSCO's coil processing lines," Phillips advised. Average unit selling prices for the quarter fell five percent from the first quarter of 2001. "Modest increases in discrete plate prices in the quarter were masked to a certain degree by product mix," he concluded. In contrast, costs decreased by 3.4 percent from the second quarter of last year and by 4.5 percent from the first quarter of 2000. 

Sales revenue at $219.6 million was down seven percent from the second quarter of last year and down six percent from the first quarter of this year primarily because of the seasonal impact of the sales of Canadian oil country tubular goods.

Steel mill product shipments at 248,600 tons were up ten percent in volume compared to the first quarter of this year. Further fabricated products at 339,100 tons were down five percent, with the drop offset somewhat by large diameter line pipe which was double the extremely low first quarter figure. Non-energy tubulars (standard pipe and hollow structurals) were flat, while cut-to-length products fell 13 percent in volume and small diameter energy products fell seasonally by 25 percent.

Capital spending of $33.2 million during the quarter was predominantly dedicated to the Mobile Steelworks with only $5.4 million devoted to projects elsewhere.

"By far the most positive development on the trade front was the Bush administration's decision to order a so-called "201" investigation by the United States International Trade Commission," Phillips reminded the shareholders. "However, while it is hoped that the commencement of a 201 investigation will lead to relief from injuriously priced steel imports in 2002, little or no impact is foreseen in 2001," added Phillips.

Phillips further stated that, "The outlook in terms of volumes for IPSCO's last half remain at the current strong level. Despite recent drops in oil and gas prices there remains a strong financial incentive to drill for oil and gas in Canada and the United States which potentially will translate into hefty sales of oil and gas well casing and tubing as well as small diameter line pipe. Demand on IPSCO facilities for mid and large diameter line pipe, somewhat lethargic in the first half, is expected to increase substantially for the last half of the year. Bookings for non-energy products, both flat rolled and tubular, have remained steady. From a price perspective attempts by IPSCO to regain the erosion caused by imports of hot rolled coil and plate in the last half of 2000 and early 2001 are bearing fruit, albeit slowly." Phillips concluded that, "Overall, IPSCO expects, neglecting the impact of product mix changes, improved price realizations, although they may be modest, in the second half."

This news release contains forward looking information with respect to IPSCO's operations and beliefs. Actual results may differ from these forward looking statements due to numerous factors, including speed of start up of the Mobile Steelworks, pricing developments or overall economic fluctuations, government actions, investigations and remedies, and potential markets for the materials produced. These and other factors are outlined in IPSCO's regulatory filings with the Securities and Exchange Commission, including those in IPSCO's Annual Report for 2000, its MD&A, particularly as discussed under the heading "Business Risks and Uncertainties", and Form 40-F.

Company Contact:
Bob Ratliff
Vice President and Chief Financial Officer
Tel. 630-810-4769
Release 01-29

Second Quarter 2001 Financial Statements
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