Olympic Steel reports net loss for Q4 despite increased sales

Olympic Steel, Inc., a national metals service center, announced Thursday financial results for the fourth quarter and full year ended Dec. 31, 2014. The Company's fourth-quarter 2014 net sales increased 12.5 percent to a fourth-quarter record of $326.7 million, compared with $290.5 million in the fourth quarter last year. Full-year net sales also set a new Company record, climbing 13.7 percent to $1.4 billion in 2014 versus $1.3 billion in 2013.

The revenue growth in both 2014 periods was due to higher sales volume. In the fourth quarter of 2014, it was determined that approximately $23.8 million of goodwill was impaired. The impairment charge was recorded as a non-cash expense for the quarter and year ended Dec. 31, 2014, and reduced 2014 fourth-quarter and full-year net income by $2.14 per share. Including the charge, the Company reported a net loss of $26.9 million, or $2.42 per share, in the fourth quarter of 2014, compared with a net loss of $1.4 million, or $0.12 per share, in 2013's fourth quarter.

For the 2014 full year, including the goodwill impairment charge, the reported net loss was $19.1 million, or $1.71 per share. This compares with net income of $7.6 million, or $0.69 per diluted share in 2013, which benefited from $3.6 million of LIFO income ($0.19 per diluted share, net of tax) associated with the tubular and pipe products segment.

"Higher net sales and shipping volume in 2014 resulted from healthy underlying demand and increasing our market share. Unfortunately, metal prices fell sharply, in line with other global commodities, which diminished margins and operating leverage during the year," said Chairman and Chief Executive Officer Michael D. Siegal.