Lower sales and expansion projects fuel earnings drop for Olympic Steel

Friday, 09 November 2012 02:24:32 (GMT+3)   |   San Diego
       

Cleveland, Ohio-based service center Olympic Steel, Inc. announced Thursday that for Q3 2012, net sales totaled $342.6 million, a 1.7 percent decrease from the prior year Q3's $348.5 million. Net income for Q3 2012 was $1.6 million, compared with $6.1 million in Q3 2011. Commenting on the results, Chairman and Chief Executive Officer Michael D. Siegal stated, "Margin pressure persisted during the third quarter and nine-month period, reflecting lower steel pricing versus the prior year's comparable periods. In addition, higher operating expenses--primarily associated with ongoing expansion projects-were incurred during the current year."

For the first nine months of 2012, net sales reached $1.1 billion, up 15.9 percent, from $941.9 million reported for the comparable period in 2011. Year-to-date 2012 sales benefitted from the company's acquisition of Chicago Tube and Iron, which closed on July 1, 2011.

Net income for the nine months totaled $12.4 million, down from $24.4 million in the comparable nine-month period of 2011.


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