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Olympic Reports Record Quarterly Sales

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Olympic Steel Inc., Cleveland, reported record quarterly sales of $453 million in the second quarter. Sales were up 27.2 percent from the year-ago quarter and 20.4 percent better than the first quarter.

Year-to-date net sales rose increased 20 percent over the same period in 2017, reaching a record $829 million. Higher shipping volume and higher average prices drove the year-over-year growth.

"Record sales tonnage of specialty metals products helped us achieve record revenue in the quarter and six-month period," said Chairman and CEO Michael Siegal. "In addition, our strong margins have substantially improved this year's financial results."

Second-quarter net income increased 230 percent to $15.8 million compared with the same quarter last year. Net income was negatively impacted in the second quarter by $1.5 million in LIFO expense.

"Our stainless-steel sales were already at all-time highs prior to our acquisition of Berlin Metals in April," Siegal said. "We have successfully integrated Berlin's business into our existing specialty metals operating segment and we continue to evaluate additional strategic acquisition opportunities."

Carbon flat product tons shipped declined modestly in the first half from $612,250 to $601,965, but that was offset by the significant increase in stainless sales and tubular and pipe products. The average selling price for all materials was up significantly in 2018 compared to the first half of 2017.

"Demand for metal products remains elevated," Siegal added. "Despite the international trade issues, our customers are anticipating strong business conditions to continue in the second half of the year."

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