NewsArticles
Minimize


Aug. 21, 2013

Olympic Posts Profitable Second Quarter
 
Olympic Steel remained profitable during the challenging second quarter. The Cleveland-based service center company reported net earnings of $2.5 million, down from $4.5 million during the same period last year.

For the first half, Olympic reported net income of $7.7 million, down from the $10.8 million posted during the first six months of 2012.

Olympic’s net sales for the second quarter totaled $330.8 million, a 10 percent decline from second-quarter 2012. For the first half, net sales dipped 10.7 percent to $668.9 million.

“The first half of 2013 was characterized by lower sales volumes and average selling prices compared with last year. However, despite the external headwinds, Olympic Steel successfully improved consolidated gross margin, lowered inventory levels and generated strong free cash flow,” said Chairman and CEO Michael D. Siegal.

Tonnage of flat-rolled shipments declined to 573,000 tons in the first half, 6.6 percent lower than 2012, driven by the weak spot sales and softer demand from key customers, particularly in the mining sector. The company cut its inventory during the quarter from $290 million at the start of the year to $249 million on June 30. Olympic’s inventory turns improved from 4.2 to 4.5 during the quarter, with progress continuing toward the stated goal of 5 turns per year.

In response to the challenging conditions, Olympic began a cost-reduction plan in the second quarter, designed to find $4.0 million in annualized savings. The plan is expected to be completed in the third quarter.

The company’s Cleveland temper mill was brought back on line in May following damage to the shear incurred in the first quarter. While the temper mill was idled, the company handled all of its customer needs through its temper mill operations in Bettendorf, Iowa, and Gary, Ind.

While stagnant prices characterized most of the first half, steel saw some improvement in early summer, but Olympic executives are skeptical about the price hikes’ momentum. “We have some questions as to how sustainable they really are, until we really see some significant demand increase,” said David Wolfort, president and chief operating officer.

Fluctuating steel prices are declining in importance to the company’s bottom line, Siegal noted. “Our financial results are becoming less correlated with the industry’s pricing environment. We see tremendous opportunity in front of us to grow the higher margin processing and services we offer, and have even gained market share with our specialty metals and pipe and tube businesses.”

From the Editor's Desk
Minimize
September 2014: No. 1 Ranking Has a Nice Ring to Reliance
More...
 
Pause
Business Practices and Technologies
Minimize
September 2014: 'What the Heck Do You Mean I Have to Give the Money Back!'
More...
The Cutting Edge, a service center technology supplement to Metal Center News
More...
Summer 2014
More...
 
Pause
New Products
Minimize
Trumpf Expands Range on TruMark 5000 Series
More...
Koike Aronson Debuts New Plasma Cutter
More...
Miyachi Unitek's Sigma XY
More...
New TMC is Messer's Largest Cutting Machine
More...
Laserdyne 795 XLZ Designed for 3D Parts
More...
Mazak's STX Champion Cuts Thick Sheets
More...
 
Pause
Directories
Minimize
Metal Center News 2014 Directories: Print or Digital copies are available for $85 U.S. for each copy.
 

 
2014 Metal Distribution Directory  
(Not Published on This Web site)
Metal Center News' Spring Metal Distribution Directory is your on-line guide to Metal Producers, Equipment Manufacturers and Software companies.  



 
2014 Directory of Master Distributors
(Not Published on This Web site)
The Metal Center News Directory of Master Distributors—distributors who sell to other distributors—is an invaluable tool for service centers seeking new sources for special or hard-to-find products. Master distributors play an important role in the marketplace, giving service centers an alternative to buying in mill quantities and helping to remove redundant and excess inventories from the distribution channel.



 
2014 Directory of Toll Processors
(Not Published on This Web site)
Metal Center News' annual toll processing directory is a simple-to-use resource to help companies locate service providers that can meet their specific processing needs.


Privacy Statement  |  Terms Of Use
Copyright by Metal Center News



Thursday, October 30, 2014