Olympic Steel, Inc. reported net income of $18.6 million on net sales of $244.1 million for the third quarter — the highest quarterly results in company history — for the third quarter ending September 30, 2004.

Third Quarter Results—Net income of $18.6 million ($1.80 per diluted share) compares to a net loss of $115 thousand ($(0.01) per diluted share) for last year's third quarter. Net sales increased 110.7% to $244.1 million from $115.9 million in the third quarter a year ago. Tons sold increased 7.2% to 323 thousand from 302 thousand in the third quarter of 2003.

Nine Month Results—Net income was $47.9 million ($4.70 per diluted share) compared to a net loss of $1.1 million ($(0.12) per diluted share) in the first nine months of 2003. Net sales increased 90.0% to $653.9 million from $344.1 million in the prior year period. Tons sold increased 23.9% to 1.05 million from 849 thousand in the first nine months of 2003.

Comments—"We are again pleased to report record net income and sales," stated Michael D. Siegal, Chairman and CEO. "Our strong focus on balance sheet management has resulted in a decrease in debt during 2004. At the same time, we have invested an additional $52 million in accounts receivable and $55 million in inventory, while improving our days sales in inventory and accounts receivable on a year over year basis. At September 30, 2004, we had approximately $48 million in availability within our increased $110 million bank credit facility."

"The continued strong global steel environment, along with the increasing domestic industrial economy, particularly the energy, transportation, farm and construction equipment markets, has also contributed to our strong financial results. With increasing global steel demand, rising energy, transportation and raw material costs, and a more disciplined supply universe, our outlook remains favorable for the fourth quarter and early 2005," 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.