Olympic Steel Inc., Cleveland, reported a net loss of less than $1 million in the fourth quarter, a modest improvement from the same quarter in 2018. Net income for 2019 was $3.9 million, well below the $33.8 million reported the prior year.
Net sales in the quarter totaled $319.7 million, a decline of 25.6 percent. Net sales declined 7.9 percent to $1.6 billion.
"We are encouraged by the progress we made to further our diversification strategy and strengthen our financial position," said CEO Richard T. Marabito. "Our specialty metals business recorded its second-most profitable year ever, and our pipe and tube business delivered solid profitability at a time when the industry was facing challenging market conditions.”
Olympic’s carbon flat-rolled tons sold declined 14.5 percent to 221,446 in the fourth quarter and were down 11.5 percent to 1 million for the full year. The average selling price in the quarter declined 23.4 percent to $799 and was down 2.3 percent to $940 for the full year.
Specialty metals tons sold fell 13.7 percent to 30,439 in the quarter, but were up 4.6 percent to 141,828 for the full year. The average selling price was $2,691 in the quarter, a 7.4 percent improvement, while the full-year selling price of $2,564 was a 1.2 percent increase on 2018.
On the pipe and tube side, net sales in the quarter declined 14.2 percent to $60,842, while full-year sales were down 3.2 percent to $288.503.
"As we start the new year, we will remain diligent in managing our operating expenses and strengthening our balance sheet to provide us with the flexibility to swiftly execute on further growth and business diversification opportunities," Marabito concluded.