Olympic Reports 19 Percent Increase in Sales
By Metal Center News Staff
on May 13, 2019
Olympic Steel, Cleveland, reported net sales of $446 million in the first quarter, a 19 percent increase compared with the same quarter of 2018. The increase was driven by higher average selling prices.
Net income in the quarter totaled $2.1 million, a decline from the $7.6 million during the prior-year first quarter.
"Net sales in the first quarter were up nearly 20 percent over the same quarter in the prior year, despite lower shipments for carbon flat products, mirroring the industry's market trend," said CEO Richard T. Marabito. "Our Specialty Metals and Tubular and Pipe businesses performed well, with strong contributions to our first-quarter results."
The company’s carbon flat products segment shipped 273,171 tons during the quarter, an 8.2 percent decrease. However, an $211 increase in average selling prices per ton resulted in a net sales increase of 15.6 percent to $278.5 million.
The company experienced with the reverse condition in its specialty metals flat products segment, with tons sold increasing 43.9 percent to 35,784, but selling prices declining by $170 per ton. Net sales were up 34.4 percent to $88.1 million.
In the tubular and pipe products segment, net sales increased 14.6 percent to $79.3 million.
"Seasonally, the second quarter is typically stronger than the first quarter, and we are optimistic about contributions from successful execution of our recent capital investments. We will remain focused on controlling our operating expenses and improving inventory turnover throughout the year," Marabito said.