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Olympic Steel Reports 4th Quarter, Annual Financial Results
02/24/2012 - Olympic Steel, Inc. reported that net sales for the fourth quarter of 2011 totaled $319.9 million, its highest ever for a fourth quarter. Net sales for the year totaled $1.26 billion, a record annual revenue total and an increase of 56.7% from $805 million in 2010.
Olympic Steel, Inc. reported that net sales for the fourth quarter of 2011, which ended Dec. 31, 2011, totaled $319.9 million, the highest ever for a fourth quarter. The figure was an increase of 48.7% from the $215.2 million in net sales for the 4th quarter of 2010. Q4 net income totaled $0.6 million, or $0.05 per diluted share, compared to a net loss of $1.6 million, or $0.15 per diluted share, in the prior year’s fourth quarter.
Net sales for the year totaled $1.26 billion in 2011, a record annual revenue total and an increase of 56.7% from $805 million in 2010. For 2011, net income increased by $22.9 million to $25.0 million, or $2.28 per diluted share, compared to net income of $2.1 million, or $0.20 per diluted share, for 2010.
The 2011 financial results include the results of Chicago Tube and Iron (CTI), from the July 1, 2011, date of acquisition by the company.
Commenting on the results, Chairman and Chief Executive Officer Michael D. Siegal said, “2011 was a year of significant transformation and growth for Olympic Steel. Our 2011 financial results and record sales benefited from our strong overall flat-rolled performance and the inclusion of Chicago Tube and Iron, which was acquired on July 1, 2011. CTI was immediately accretive to our earnings, and accelerated our market share growth and product expansion in tubing.
“We executed exceptionally well on our previously announced strategic investments, with 2011 capital spending of $39.5 million, including new processing equipment, successful information system infrastructure rollouts, and facility startups. Our largest and most exciting project of 2011 was the successful startup of our third temper mill in Gary, Ind. We began producing quality tempered sheet from the Gary facility in December 2011, with 150,000 incremental tons of capacity now available to us in the Chicago market as the equipment becomes fully operational.
“We also opened our first physical facility outside of the United States in 2011 in Monterrey, Mexico, to better serve our growing customer base there. Other new facilities were acquired in 2011 in Mount Sterling, Ky.; Kansas City, Missouri; Roseville, Minn.; and Streetsboro, Ohio, to aggressively expand our geographic footprint and enhance our services to customers. Our balance sheet remains strong with our new five-year, $335 million credit facility providing a foundation for continued growth and value creation,” Siegal concluded.
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 29 facilities in North America.
