IPSCO Ends 2003 Profitably

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

Lisle, Illinois, February 9, 2004 - IPSCO Inc. (NYSE/TSX:IPS), announced today record sales of $1.3 billion, up 20% over 2002. Net income was $12.4 million compared to $20.3 million last year. Net income attributable to common shareholders was $0.3 million, compared to $8.9 million in 2002. Both basic and diluted earnings per share in 2003 were $0.01, compared to $0.19 per share in 2002. The 2002 fourth quarter and annual results included a one-time gain on the sale of assets of $4.1 million or $0.09 per share. Operating income per ton shipped for the year was $15, compared to $17 per ton in 2002.

Fourth quarter net income was $10.4 million. Net income attributable to common shareholders was $7.3 million, $0.15 per diluted share, down from the $10.0 million ($0.19 per diluted share) reported last year, but up excluding the 2002 one-time gain. Sales for the quarter were a record $381.5 million, up $125.4 million or 49% over the fourth quarter of 2002.

Even with improved fourth quarter results, net income attributable to common shareholders was down for the year primarily because of raw material cost increases, although cash flow from operations was stronger. IPSCO had record quarterly sales and solid earnings from its tubular product lines, reflecting the strong western Canadian drilling market and continued sales growth in the United States. The flat rolled business also improved during the fourth quarter despite higher scrap costs, due to strong operating performance and increased realization of announced price increases. In addition, the effective tax rate of 70% reported through the first nine months improved to 50% for the year. IPSCO did not recognize tax benefits on 2003 U.S. operating losses, which were less than earlier estimated. 

Record annual sales volume of 3,137,100 tons exceeded 2002 shipments by 8%. Sales of steel mill products, comprising cut plate, discrete plate and hot rolled coil totalled 2,196,500 tons, just slightly higher than 2002. Sales volume for tubular products, which include standard pipe, hollow structurals, and energy related tubular products, were 940,600 tons, a 20% increase over last year. 

Liquid steel production for 2003 was a record 3,217,100 tons, almost 7% higher than in 2002.

Sales volume for the fourth quarter was also a record 896,800 tons, up 40% over the fourth quarter of 2002. Quarterly sales of steel mill products were 644,100 tons, 40% higher than in the fourth quarter of 2002. Tubular product sales of 252,700 tons in the fourth quarter were up 43% over the year earlier period.

"For the second consecutive year IPSCO had record sales and production levels and continued to enjoy solid market penetration throughout North America," said David Sutherland, President and Chief Executive Officer. "Unfortunately the year got off to a slow start with low demand for our plate products because of market conditions in the industrial sector. While we sustained our market share in the plate business developed over the past few years, margins deteriorated because of significant raw material cost increases."

"We were pleased with the second half momentum and in particular with plate sales performance in the fourth quarter. The very tough plate sector conditions in the last few years have resulted in fewer viable supply sources and as a result of these structural changes we will be in a position to obtain more sustainable pricing for our plate products. Demand for tubular products is expected to remain strong on top of the higher demand for our steel products. Raw material cost increases have proven to be difficult to predict and as a result we have implemented a surcharge to cover these costs. Barring any further surprises, I expect our full year results should be within the current range of analyst estimates," concluded Sutherland. 

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, but not limited to, weather conditions affecting the oil patch, drilling rig availability, demand for oil and gas, supply, demand and price for scrap metal and other raw materials, supply, demand and price for electricity and natural gas, demand and prices for products produced by the Company, general economic conditions and changes in financial markets. 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 2002, its MD&A, particularly as discussed under the heading "Business Risks and Uncertainties", and its Form 40-F as amended.

Company Contact:
Bob Ratliff
Vice President and Chief Financial Officer
IPSCO 
Tel. 630-810-4769
Release 04-05


Fourth Quarter 2003 Financial Statements
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Tons Shipped by Quarter
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Sales by Quarter
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