Olympic Steel Reports 2013 Third-Quarter Results
Third quarter net sales totaled US$304.0 million, 11.3% lower than the US$342.6 million reported in last year's comparable quarter. For the nine months, net sales were US$972.9 million, compared with US$1.1 billion in the 2012 nine-month period-a decline of 10.9%.
Net income for the quarter was US$1.3 million, or US$0.12 per diluted share, compared with US$1.6 million, or US$0.15 per diluted share, in the third quarter of 2012. For the nine-month period, net income was US$9.0 million, or US$0.82 per diluted share, compared with US$12.4 million, or US$1.13 per diluted share, last year. LIFO income had a US$0.14 per share positive impact on current year-to-date reported earnings.
"We continue to generate strong free cash flow and transition the business to higher-value products. During the quarter, we strengthened our balance sheet by further reducing outstanding debt using both cash generated from operations and enhanced working-capital management, which benefited from improved inventory turnover. In addition, gross margins expanded reflecting consistent profit on a per ton basis, despite market driven lower steel prices and shipments," said chairman and chief executive officer Michael D. Siegal.
Mr. Siegal added, "The cost reduction actions that began late in the second quarter are now complete and have lowered annualized operating costs by more than US$4 million. Coupled with ongoing initiatives to permanently lower structural costs and enhance operating efficiency, these efforts reflect our commitment to perpetually enhancing productivity."
Founded in 1954, Olympic Steel is a leading U.S. metals 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 and aluminum products. The company's CTI subsidiary is a leading distributor of steel tubing, bar, pipe, valves and fittings, and fabricates pressure parts for the electric utility industry. Headquartered in Cleveland, Ohio, Olympic Steel operates from 34 facilities in North America.