Service Center News

Olympic Posts Quarterly Loss

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Olympic Steel posted a net loss of $6.5 million in the second quarter, a reversal of the $2.1 million in income reported in the same quarter the prior year. The Cleveland-based service center company had reported income of just under $1 million in the prior quarter.

Net sales in the second quarter totaled $248 million, well below the $429 million reported in the prior-year quarter. The decline was the result of lower average selling prices combined with a decline in volumes driven by the downturn in industrial markets and temporary closures in the automotive industry as a result of the COVID-19 pandemic.

"I want to thank the Olympic Steel team for their resilience and flexibility in the face of the unprecedented business conditions created by the COVID-19 pandemic. Together, we have reinforced our commitment to a safe work environment, maintained operations as an essential business, and continued to be a reliable partner to our customers and suppliers," said CEO Richard T. Marabito.

"As the pandemic began to affect the U.S. economy, we quickly took decisive actions to sustainably reduce operating expenses, limit capital expenditures to safety and maintenance needs, further tighten inventory management, and preserve liquidity. As a result, while many of our key markets faced extreme disruption and volatility, we benefited from a significantly lower expense run rate and the ability to efficiently respond to fluctuations in demand, resulting in positive adjusted EBITDA for the quarter,” he said. “Our pipe and tube and specialty metals businesses were particularly resilient, with both segments delivering consistent profitability in a difficult market."

In the company’s flat-rolled products segment, tons sold declined 30.8 percent to 184,824 in the quarter. Specialty tons sold were down 34.9 percent to 24,337. Net sales in the tubular and pipe group declined 31.3 percent to $52.9 million.

"We believe that market conditions will continue to improve and expect the third quarter to be sequentially better than the second quarter,” Marabito said.

Net sales in the second quarter totaled $248 million, well below the $429 million reported in the prior-year quarter. The decline was the result of lower average selling prices combined with a decline in volumes driven by the downturn in industrial markets and temporary closures in the automotive industry as a result of the COVID-19 pandemic.

In the company’s flat-rolled products segment, tons sold declined 30.8 percent to 184,824 in the quarter. Specialty tons sold were down 34.9 percent to 24,337. Net sales in the tubular and pipe group declined 31.3 percent to $52.9 million.

"We believe that market conditions will continue to improve and expect the third quarter to be sequentially better than the second quarter,” Marabito said.