Cleveland, Ohio-based Olympic Steel, Inc., a national steel service center, Thursday announced its financial results for the first quarter ended March 31, 2010.
Net sales for the first quarter of 2010 totaled $167.9 million, a 19.2 percent increase from the $140.9 million for the first quarter of 2009. Tons sold in the first quarter of 2010 increased 29.2 percent to 221,000 from 171,000 in the first quarter of 2009. First quarter 2010 net income totaled $1.7 million, or $0.16 per diluted share, compared to a net loss of $25.5 million, or $2.34 per diluted share, for last year's first quarter. The 2009 results included a $30.6 million lower of cost or market pretax charge to write down the value of inventory as of March 31, 2009.
"We are pleased with our first quarter results, and our sequential improvements from the fourth quarter of 2009," said Chairman and CEO Michael D. Siegal. "Our first-quarter shipments increased year over year by 29.2 percent, outpacing the market increase in total steel shipments of 11.2 percent, as reported in the Metals Service Center Institute's Market Activity Report. Our shipments also improved sequentially over the fourth quarter of 2009 by 14 percent. We are benefitting from large OEM customers awarding business to financially strong, quality suppliers, as well as improved overall demand from the economic recovery. The increased investments we have made in our specialty metals business are also producing growth in our stainless and aluminum sales and earnings. Our balance sheet remained exceptionally strong, as our inventory turnover exceeded five times at March 31, 2010, and we received our $38 million federal income tax refund in April. We used the tax refund proceeds to eliminate all of our borrowings that were outstanding at quarter end. Our second quarter sales and earnings are expected to benefit from the continuing trend of rising steel prices and shipments experienced in each month of the first quarter."