Olympic Steel Reports 2012 Second Quarter Financial Results
08/09/2012 - Olympic Steel, Inc., a national metals service center, announced its financial results for the second quarter and six months ended 30 June 2012; second quarter sales increased 23% while net income fell 43% year-on-year.
Olympic Steel, Inc., a national metals service center, announced its financial results for the second quarter and six months ended 30 June 2012.
Net sales for the second quarter of 2012 totaled $367.4 million, a 22.9% increase from the $299.0 million for the second quarter of 2011. Net sales for the first half of 2012 totaled $749.4 million, a 26.3% increase from the $593.4 million for the first six months of 2011. Second quarter 2012 net income totaled $4.5 million compared to $7.9 million in last year's second quarter. First half 2012 net income totaled $10.8 million compared to net income of $18.3 million for last year's first half. The 2012 financial results include the results of Chicago Tube and Iron (CTI), which was acquired by the company on 1 July 2011.
Commenting on the results, Chairman and Chief Executive Officer Michael D. Siegal stated, "We are pleased with our sales and market share growth in the second quarter. Earnings were impacted by degradation of pricing in both carbon and nickel products, and costs associated with startups not yet fully operational. We are focused on increasing cash flows and reducing debt, and look to the future contributions of our 2012 startup locations in Gary, Ind.; Mount Sterling, Ky.; Monterrey, Mexico; Kansas City, Mo.; and Streetsboro, Ohio. Our capital spending on these projects concludes in 2012, and we then expect future annual capital spending levels to be below depreciation levels. We are also pleased with CTI and its continued accretion to earnings and the product diversity that the pipe and tube business provides. To date, we have been expanding our investments in CTI's facilities and equipment. The remaining four years on our credit facility provides us with strong future liquidity."
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 currently operates from 33 facilities in North America.
