Record Tons but Lower Prices Result in IPSCO Quarterly Loss

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

Lisle, Illinois, 22 April 2002 - IPSCO Inc. (NYSE/TSE:IPS), announced today that the net loss attributable to common shareholders for the quarter was $3.4 million or eight cents per diluted share, a significant improvement over the $15.5 million loss reported last quarter, but off considerably from the net income attributable to common shareholders of $5.7 million or 14 cents per diluted share reported in the first quarter 2001.

Sales revenue at $271.1 million was up 17 percent over the first quarter of last year and 22 percent higher than the prior quarter. First quarter shipments of 749,500 tons increased by 28 percent and 24 percent respectively, over the same periods. Shipments of steel mill products were 369,000 tons, 63 percent higher than the first quarter of 2001. Further fabricated product shipments of 380,500 tons were seven percent higher than in the first quarter of 2001.

"We have mixed results to report for IPSCO," said David Sutherland, the Company's President and Chief Executive Officer. "Record shipments and record production speak well for our continued market penetration and product acceptance, primarily in the United States markets. Quarterly average pricing has generally declined quarter over quarter for the last several quarters and was off nine percent compared to the first quarter of 2001. Unfortunately, continuing that trend, first quarter average pricing was again down two percent compared to the fourth quarter of 2001. Benefits from announced price increases did not commence to be realized until late in the first quarter."

"On the trade front, the most significant development during the quarter was the announcement of the 201 safeguard remedy in the United States. The remedy recognizes the injury that has been caused to the steel industry by offshore imports as reflected in historically low prices and provides for tariffs and/or quotas over the next three years on most products that IPSCO manufactures. In addition, a safeguard action was announced in Canada to deal with high levels of injurious imports in that country and to protect against the threat of diversion of additional shipments of imported steel that can no longer enter the United States," added Sutherland.

"Looking to the future the outlook for sales of steel mill products shows considerable volume strength through the second quarter based on current ordering patterns, particularly from the service center sector. Tubular product demand for the energy sector is less robust but some strengthening is anticipated following the normal second quarter seasonal slow down," Sutherland advised.

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 weather patterns affecting oil drilling, potential markets and demand for the materials produced, level of potential imports, market forces, domestic pricing of steel products, and trade laws. These and other factors are outlined in IPSCO's regulatory filings with the Securities and Exchange Commission, including those on IPSCO's Annual Report for 2001, its MD&A and Form 40-F.

Company Contact: 
Bob Ratliff
Vice President and Chief Financial Officer
IPSCO Inc.
Tel. 630-810-4769
Release 02-14

First Quarter 2002 Financial Statements
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