Nov. 13, 2013
Olympic's Sales Off Through Three Quarters
Olympic Steel Inc., Cleveland, reported net income of $1.3 million during its third quarter, comparable to the $1.6 million reported during the same period in 2012. For the year to date, however, its net income was $9.0 million, 27.4 percent behind the total through three quarters of 2012.
Net sales in the third quarter totaled $304.0 million, down 11.3 percent from the same period last year. Year-to-date sales totaled $972.9 million, off 10.9 percent from 2012.
“We continue to generate strong free cash flow and transition the business to higher-value products. During the quarter, we strengthened our balance sheet by further reducing outstanding debt using both cash generated from operations and enhanced working-capital management, which benefited from improved inventory turnover. In addition, gross margins expanded reflecting consistent profit on a per-ton basis, despite market-driven lower steel prices and shipments," Chairman and Chief Executive Officer Michael D. Siegal told investors and analysts during the company's quarterly conference call.
"The cost reduction actions that began late in the second quarter are now complete and have lowered annualized operating costs by more than $4 million. Coupled with ongoing initiatives to permanently lower structural costs and enhance operating efficiency, these efforts reflect our commitment to perpetually enhancing productivity," Siegal said.