Olympic Steel Reports First Quarter 2009 Results
04/30/2009 - Olympic Steel reports a net loss of $25.5 million on net sales of $140.9 million for the first quarter ended March 31, 2009.
Olympic Steel, Inc. reported a net loss of $25.5 million on net sales of $140.9 million for the first quarter ended March 31, 2009.
The $25.5 million net loss ($2.34 per diluted share) compares to net income of $13.2 million ($1.21 per diluted share) for last year’s first quarter. Results include a $30.6-million lower-of-cost-or-market pretax charge to write down the value of inventory as of March 31, 2009.
Net sales totaled $140.9 million, reflecting a 48.8% decrease from net sales of $274.9 million for the year-ago first quarter. Tons sold, 171,000, reflect 45.6% decrease from 315,000 tons sold in the first quarter of 2008. Te company’s 45.6% year-over-year decrease compares to Metals Service Center Institute statistics of a 41.8% decline in year-over-year steel shipments for the first quarter of 2009.
“These disappointing results are a result of greater-than-anticipated demand and price destruction, as well as the severe liquidity crisis in the global financial sectors,” said Chairman and CEO Michael D. Siegal, commenting on the company’s results. “We expect our results to improve as conditions stabilize,” he concluded.
Olympic Steel’s Board of Directors approved a regular quarterly cash dividend of $0.02 per share to be paid to shareholders of record as of June 1, 2009, and distributed on June 15, 2009. This is a $0.03 per share decline from the quarterly dividend paid in March.
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.
