Olympic Steel, Inc. today announced financial results for the three months ended June 30, 2020.
Net loss for the second quarter totaled $6.5 million, compared with net income of $2.1 million in the second quarter of 2019.
Sales for the second quarter of 2020 totaled $248 million, compared with $429 million in the second quarter of 2019. In a statement, the company said the decline in sales during the current quarter was the result of lower average selling prices and a significant decline in volume driven by the downturn in industrial markets and temporary closures in the automotive industry caused by the COVID-19 pandemic.
Chief Executive Officer Richard T. Marabito, commented, “As the pandemic began to affect the US economy, we quickly took decisive actions to sustainably reduce operating expenses, limit capital expenditures to safety and maintenance needs, further tighten inventory management, and preserve liquidity. As a result, while many of our key markets faced extreme disruption and volatility, we benefited from a significantly lower expense run rate and the ability to efficiently respond to fluctuations in demand, resulting in positive adjusted EBITDA for the quarter. Our pipe and tube and specialty metals businesses were particularly resilient, with both segments delivering consistent profitability in a difficult market.”
As for an outlook, Marabito said, “We believe that market conditions will continue to improve and expect the third quarter to be sequentially better than the second quarter. Our operational flexibility and strong liquidity position, along with the diversification we’ve built into our business, give us the foundation to manage through the ongoing challenges. As we look ahead, we believe that the fortitude of our team and the agility of our company position Olympic Steel to capitalize on sustained economic and industry momentum as it occurs.”