Olympic Steel Reports 4th Quarter, Full-Year 2008 Results
02/13/2009 - Olympic Steel reports net income of $0.8 million on net sales of $253.6 million for the fourth quarter and record net income of $67.7 million on record net sales of $1.23 billion for the year ended December 31, 2008.
Olympic Steel, Inc. reported net income of $0.8 million on net sales of $253.6 million for the fourth quarter and record net income of $67.7 million on record net sales of $1.23 billion for the year ended December 31, 2008.
Fourth Quarter Results—The $0.8 million ($0.07 per diluted share) net income compares to net income of $4.5 million ($0.42 per diluted share) for last year’s fourth quarter. Net sales of $253.6 million reflect a 7.4% increase from net sales of $236.1 million for the year-ago fourth quarter.
Tons sold, 229,000, reflect a 21.5% decrease compared to 291,000 tons in the fourth quarter of 2007.
Full Year Results—Record net income of $67.7 million ($6.21 per diluted share) compares to net income of $25.3 million ($2.35 per diluted share) for 2007. Record net sales $1.23 billion reflect a 19.3% increase compared to last year’s net sales of $1.03 billion.
Tons sold, 1.17 million, reflect a 6.6% decrease from 1.25 million tons in 2007. The 6.6% decrease compares to the Metals Service Center Institute statistics of a 10.6% decline in total steel shipments in the United States for 2008.
Management Comments—“We are pleased with our record 2008 sales and earnings performance, and our ability to gain market share, even with the rapid and deep economic downturn of the fourth quarter,” said Chairman and CEO Michael D. Siegal, commenting on the results. “We enter 2009 with a particularly strong balance sheet, and a significantly lower operating expense base aligned with the industry-wide decline in sales volumes.”
“Given the challenging and uncertain economic and financial environment, prospects for a quick recovery in business levels are remote,” continued Siegal. “We believe we are in a position of strength and can weather the difficult economic climate with our strong, low-leveraged balance sheet, a proven disciplined approach to working capital management, and aggressive cost reductions.
“We believe that we are favorably positioned to take advantage of the market when demand returns,” concluded Siegal.
“We believe that we are favorably positioned to take advantage of the market when demand returns,” concluded 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 17 facilities.
