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Olympic Steel Reports Record Nine-Month Results
10/31/2008 - Olympic Steel reports net income of $24.2 million on net sales of $335.2 million for the third quarter and record net income of $66.9 million on record net sales of $973.6 million for the first nine months of 2008.
Olympic Steel, Inc. reported net income of $24.2 million on net sales of $335.2 million for the third quarter and record net income of $66.9 million on record net sales of $973.6 million for the first nine months of 2008.
Third Quarter Results—The $24.2 million net income ($2.21 per diluted share) compares to net income of $6.0 million ($0.56 per diluted share) for last year’s third quarter. The $335.2 million net sales represent a 30.9% increase from net sales of $256.1 million for the year-ago third quarter. Tons sold, 268 thousand, represents a 13.4% decrease from 309 thousand in the third quarter of 2007.
Nine Month Results—The $66.9 million record net income ($6.13 per diluted share) compares to net income of $20.7 million ($1.93 per diluted share) for last year’s first nine months. Record net sales of $973.6 million represent a 22.8% increase compared to last year’s nine month net sales of $792.9 million.
Tons sold, 937 thousand, represents a 2.1% decrease compared to 957 thousand tons sold in the first nine months of 2007. Olympic Steel’s 2.1% decrease also compares to the Metals Service Center Institute statistics of a 6.6% decline in total steel shipments in the United States for the first nine months of 2008.
Management Comments—“We are pleased with our record year-to-date 2008 performance,” said Chairman and CEO Michael D. Siegal, commenting on the results. “For the first nine months of 2008, we have achieved record sales and earnings, gained market share in a depressed demand environment, and maintained a particularly strong balance sheet, with shareholders’ equity per share now totaling $29.67.”
“Given the uncertainty surrounding the economic and financial environment, there is limited forward market visibility,” continued Siegal. “We believe we are appropriately positioned for these challenging economic conditions with a strong, low-leveraged balance sheet, and a proven disciplined approach to working capital management and turnover.
“We continue to actively invest in our future growth with $24.4 million of year-to-date capital spending on facilities, equipment and our new information system. We expect to maintain our balance sheet strength with positive free cash flows and lower debt levels in the foreseeable future,” concluded Siegal.
Olympic Steel’s Board of Directors approved a regular quarterly cash dividend of $.05 per share to be paid to shareholders of record as of December 1, 2008, and distributed on December 15, 2008.
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 16 facilities.
