Olympic Steel, Inc. announced highest-ever net income of $18.5 million on net sales of $222.8 million for the second quarter and net income of $29.3 million on net sales of $409.8 million for the six months ended June 30, 2004.

Second Quarter Results—Net income was the highest quarterly results in Company history, totaling $18.5 million ($1.89 per basic share and $1.82 per diluted share). This compares to a net loss of $554 thousand ($.06 loss per basic and diluted share) for last year's second quarter. Net sales increased 96.4% to $222.8 million from $113.4 million in the second quarter a year ago. Tons sold increased 23.4% to 344 thousand from 279 thousand in the second quarter of 2003.

Six Month Results—Net income of $29.3 million ($3.01 per basic share and $2.90 per diluted share) compares to a net loss of $1.0 million ($.11 loss per basic and diluted share) in the first half of 2003. Net sales increased 79.5% to $409.8 million from $228.3 million. Tons sold increased 33.2% to 729 thousand from 548 thousand in the first half of 2003.

Comments—"We are pleased to report record sales and earnings. We are most happy with our continued success in our asset turnover and balance sheet management during a period of rapidly escalating steel prices," stated Michael D. Siegal, Chairman and CEO. "We reduced our debt by $7.4 million during the first half of 2004, while our accounts receivable increased $41.1 million and inventory increased $39.7 million due to strong demand and significant price increases in the first half."

"We are optimistic about the second half of 2004, based upon our customers' and suppliers' performance and their favorable outlook for the remainder of 2004. We see many positive growth opportunities this year for Olympic Steel, understanding that the back half of the year does have eight less shipping days than the first half of the year. We expect to take advantage of this higher risk environment, as we are well positioned in terms of inventory and liquidity, while maintaining our strict disciplines on working capital, cash turnover and credit risk management," concluded Mr. Siegal.

Founded in 1954, Olympic Steel is a North American steel service center that is experienced in the specialized processing and distribution of large volumes of flat-rolled carbon and stainless steel products. Headquartered in Cleveland, Ohio, the company operates 12 distribution and processing facilities and participates in two joint ventures in Michigan.