Nov. 12, 2014
Olympic Reports Record Third-Quarter Sales
Olympic Steel, Inc., Cleveland, grew its sales in the third quarter by $72.6 million to a record $376.6 million, an increase of 23.9 percent compared to the same quarter last year. For the year to date, the company’s net sales increased 14.1 percent to $1.1 billion. The revenue growth was due to higher sales volumes in all product segments, company executives reported.
Olympic's net income in the third quarter totaled $1.6 million, a modest improvement on the $1.3 million posted in the same quarter last year. For the year to date, its income of $7.8 million was down 13.3 percent from 2013.
"Our revenue and market share have grown substantially in 2014; however, we are not satisfied with our bottom line. Operating costs are inflated for the current market environment," Chairman and CEO Michael D. Siegal told investors and analysts during the company’s quarterly conference call. "A multitude of initiatives are under way to lower operating costs and improve efficiencies. We are committed to accelerating inventory turnover, improving operating costs and reducing debt."
Average selling prices were higher for both the quarter and the nine-month period, with prices peaking in the third quarter. But the upward pricing trend is not expected to last, Siegal said.
"Recovery in demand and domestic supply issues in the first half of the year pushed the premium for North American steel to more than $200 per ton over world export prices. This resulted in a surge in imports, which have hit record levels this year and are putting downward pressure on the current steel price market," he said.
Most of the company's major end markets are healthy, with good demand and higher volumes. The exception is mining, which has been sluggish for more than a year. There is also some potential weakness in the agricultural equipment sector, Siegal added.