March 2, 2016

Olympic Reports $26.8 Million Loss

Olympic Steel, Inc., Cleveland, reported a net loss of $26.8 million on sales of $1.2 billion in 2015 due to sharply lower market prices and weaker demand. Revenues declined 18.2 percent compared with the previous fiscal year, in which the company recorded a $19.1 million loss. Olympic’s fourth-quarter sales of $237.5 million were off 27.3 percent compared to the final three months of 2014. The company reported a $5.0 million loss in the quarter.

"Prior to the start of the year, we anticipated challenging industry conditions and promptly executed an internal plan to cope with external developments," said Chairman and CEO Michael D. Siegal during the company’s quarterly conference call with investors and analysts. "During the year, proactive actions lowered operating expenses by more than $24 million, and prudent management of working capital helped generate more than $107 million in positive cash flow."

Olympic’s 2015 carbon flat-rolled shipments declined by 11 percent to 1.0 million tons. The average selling price was down 13 percent. Its specialty metals business held up better, with full-year shipments of 72,000 tons down just 1 percent from 2014. The average specialty selling price was down 6 percent.

Pricing has improved to start the year, executives noted. “The first price announcement of $40 has been absorbed. Average lead times from the mills have started to expand, and service center inventories are starting to tighten. All of this has us feeling slightly better about the near-term pricing,” said David Wolfort, Olympic president and COO.

"Looking ahead, Olympic Steel enters 2016 with a particularly strong balance sheet, a significantly lower operating expense base aligned with the industry-wide decline in sales volumes, and faster-turning inventory. Although steel prices have firmed from the 2015 market lows of December, the industry environment remains uncertain,” Siegal added.


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Friday, October 20, 2017