Aug. 3, 2016

Olympic Returns to Profitability in Second Quarter

Olympic Steel, Cleveland, reported net income of $3.6 million in the second quarter, reversing a $22.3 million loss from the same quarter in 2015. The positive quarter was also an improvement on the modest loss posted in the first quarter. Through six months, Olympic Steel posted a net income of $2.7 million, compared with a loss of $21.0 million through the first half of 2015.

Olympic’s second-quarter net sales totaled $273.6 million, a 13.2 percent decline from the same quarter in 2015, but an increase of 5.9 percent from the prior quarter. First-half sales of $532.0 million were down 19.5 percent from first-half 2015.

The company enjoyed higher sales volumes of specialty metals and pipe and tube during the quarter, resulting in record market share in those products. Those gains were offset by lower average selling prices, leading to the year-over-year revenue decline.

"We continue to gain market share and improve profit margins despite weak industry-wide shipments," said Michael D. Siegal, Olympic Steel Chairman and CEO during the company’s quarterly conference call with investors and analysts. "In response to market conditions, we reduced operating expenses, accelerated inventory turnover and paid down debt. These actions, combined with rebounding metal prices, resulted in our return to profitability in the quarter. The pre-tax income of $7.0 million the company generated in the second quarter was the highest in more than three years."

Added Siegal: "Domestic steel production remains controlled and import volumes have come down from record-highs, supporting higher prices. We will maintain our operating disciplines, and any improvement in demand will help future results.”


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Tuesday, December 12, 2017