Cleveland, Ohio-based national metals service center Olympic Steel, Inc. announced Thursday that for Q1 2012, net sales totaled $382.1 million, a record quarterly revenue total, and an increase of 29.8 percent from the $294.4 million for Q1 2011. Q1 2012 net income, meanwhile, was $6.2 million during the quarter, down from $10.3 million in last year's Q1.
Michael Siegal, Olympic Steel's Chairman and CEO said that Q1 results benefited from sequentially improved flat rolled sales from Q4 2011, and "outstanding performance" in Olympic's pipe and tube segment, which continues to deliver consistently strong financial results.
Looking forward, Olympic's executives noted that Q1 was characterized as "uneven with most of our quarter under supply side pricing pressure. This resulted in the choppy steel prices and pressured margins especially in carbon and stainless flat rolled areas." And while the first half of the year is usually the seasonal time for price increases, 2012 has been a non-traditional year thus far, and Q2 looks to have similar market conditions to Q1. In Q2 Olympic plans to reduce inventory levels at its various locations.