Olympic Steel, Inc., announced net income of $2.2 million on net sales of $208.4 million for the third quarter, and net income of $14.8 million on net sales of $734.4 million for the nine months ended September 30, 2005.

Third Quarter Results—The $2.2 million net income ($0.21 per diluted share) compared to net income of $18.6 million ($1.80 per diluted share) for last year's third quarter. Net sales of $208.4 million reflect a 14.7% decrease from the $244.1 million for the third quarter a year ago. Tons sold decreased 5.5% to 306 thousand from 323 thousand in the third quarter of 2004.

Nine Month Results—The $14.8 million net income ($1.42 per diluted share) compares to net income of $47.9 million ($4.70 per diluted share) in the first nine months of 2004. Net sales of $734.4 million reflect a 12.3% increase compared to $653.9 million in YTD 2004. Tons sold decreased 6.5% to 984 thousand from 1.05 million in the first nine months of 2004.

Comments—"Our acceleration of inventory and receivables turnover, coupled with consistent profitability and expense control, resulted in a significant reduction in our debt," stated Michael D. Siegal, Chairman and CEO. “During the third quarter, we reduced our Total Debt by $70 million to $13 million. Olympic Steel now has its strongest balance sheet and capital position since our initial public offering in 1994, with over $193 million, or $19.01 per share, of shareholders' equity at September 30, 2005.

“During the third quarter, carbon flat rolled pricing and margin compression reached its low point so far this year. We at Olympic are encouraged by the recent reductions in the steel service center industry's inventory levels as reported by the Metals Service Center Institute, coupled with announced producer price increases for carbon steel throughout the third quarter. Currently, demand appears solid entering the fourth quarter, leading us to believe in strong economic fundamentals for the marketplace. Our repositioned balance sheet is appropriate for these improving market conditions. We also anticipate using our financial position to take advantage of a consolidating service center industry," concluded Mr. Siegal.

Founded in 1954, Olympic Steel is a leading U.S. steel 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 products. Headquartered in Cleveland, Ohio, the company operates 12 facilities and participates in two joint ventures.