Aug. 16, 2017

Olympic Enjoys 35 Percent Income Growth

Olympic Steel Inc., Cleveland, reported $4.8 million in net income for the second quarter, compared with $3.6 million for the same period last year. Net sales totaled $356.2 million during the quarter, a 30 percent increase over the second quarter of 2016.

The company credited higher year-over-year shipping volume and higher average selling prices for the jump in sales.

"Demand for our products has been steadily improving since late last year," Chairman and CEO Michael Siegal said. "With increased customer demand, we continue to outpace the overall market and have increased our market share.”

In 2017, each of Olympic’s three business segments set all-time highs in market share, according to the company. The carbon flat products segment reported 308,458 tons sold and net sales of $237.1 million in the second quarter, increases of 13.2 percent and 36.9 percent, respectively, compared with last year.

Olympic’s specialty metals flat products segment shipped 22,539 tons and accounted for $58.3 million in net sales during the quarter, a year-over-year increase of 17.7 percent. Lastly, the tubular and pipe products segment reported net sales of $60.9 million for the quarter, up from $51 million in the second quarter of 2016.

The company also reported improved inventory management and accelerated inventory turnover, despite carrying higher levels of inventory in receivables necessary to support growing demand and a larger market share. Inventory turnover improved to 4.8 turns in the quarter, compared with 4.6 turns in the first quarter of 2017.

“To support growing market demand, we have an exceptionally strong balance sheet and plenty of borrowing capacity, allowing us to quickly respond to changes in market conditions,” Siegal said. “In addition, our strong financial position affords us the competitive advantage of low-cost financing to fund higher shipping activity and growth initiatives simultaneously.”


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Wednesday, October 18, 2017