Olympic Steel Gives Favorable Outlook for Remainder of the Year
05/01/2014 - Olympic Steel Inc., a national metals service center, announced financial results for the first quarter ended 31 March 2014.
Driven by higher volume, first quarter 2014 net sales climbed 2.6% to US$346.9 million, compared with US$338.1 million in the prior year first quarter. Net income totaled US$2.8 million, or US$0.25 per diluted share, compared with net income of US$5.2 million, US$0.47 per share in the first quarter of 2013. Last year, first-quarter results benefited from a pre-tax out-of-period adjustment to record LIFO income of US$1.9 million (US$1.2 million, or US$0.11 per diluted share, after tax). No LIFO impact was recorded for the first quarter of the current year.
"Consistent with our emphasis to improve capacity utilization, volume increased in both the flat rolled and tubular and pipe segments of the business. Realizing increased tonnage and net sales versus last year's first quarter is particularly gratifying because we had fewer shipping days in the first quarter of 2014 due to inclement weather," said chairman and chief executive officer Michael D. Siegal.
"Carbon steel, nickel and stainless steel base prices rebounded at the end of the quarter and have built momentum in April," Mr. Siegal added. "Stronger metal prices and order activity, combined with a healthy near-term outlook from our customers, points to a more favorable outlook for the second quarter and remainder of the year. Future profitability will also be enhanced by the successful execution of cost-reduction and operational efficiency initiatives."
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel and aluminum products. The company's CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the electric utility industry. Headquartered in Cleveland, Ohio, Olympic Steel operates from 35 facilities in North America.
"Consistent with our emphasis to improve capacity utilization, volume increased in both the flat rolled and tubular and pipe segments of the business. Realizing increased tonnage and net sales versus last year's first quarter is particularly gratifying because we had fewer shipping days in the first quarter of 2014 due to inclement weather," said chairman and chief executive officer Michael D. Siegal.
"Carbon steel, nickel and stainless steel base prices rebounded at the end of the quarter and have built momentum in April," Mr. Siegal added. "Stronger metal prices and order activity, combined with a healthy near-term outlook from our customers, points to a more favorable outlook for the second quarter and remainder of the year. Future profitability will also be enhanced by the successful execution of cost-reduction and operational efficiency initiatives."
Founded in 1954, Olympic Steel is a leading U.S. metals service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel and aluminum products. The company's CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the electric utility industry. Headquartered in Cleveland, Ohio, Olympic Steel operates from 35 facilities in North America.
