Cleveland, Ohio-based steel service center Olympic Steel announced Thursday its financial results for the third quarter and nine months ended September 30, 2009.
Net sales for the third quarter of 2009 totaled $121.6 million, a 63.7 percent decrease from the $335.2 million for the third quarter of 2008. Tons sold in the third quarter of 2009 decreased 32.2 percent to 181,000 nt from 268,000 nt in the third quarter of 2008. Third quarter 2009 net income totaled $671,000 compared to net income of $24.2 million for last year's third quarter.
Net sales for the first nine months of 2009 totaled $384.9 million, a 60.5 percent decrease from the $973.6 million for the nine months of 2008. Tons sold in the first nine months of 2009 decreased 43.7 percent to 527,000 nt from 937,000 nt in 2008. Net loss totaled $58.6 million for the nine months ended September 30, 2009, compared to net income of $66.9 million for last year's first nine months. The 2009 year-to-date pre-tax results include $81.1 million of lower of cost or market charges to write down the value of inventory as of March 31, 2009 and June 30, 2009.
Commenting on the results, chairman and CEO Michael D. Siegal stated, "We are pleased to return to profitability in the third quarter, and to report an exceptionally strong balance sheet... We are benefitting from large OEM customers resourcing to quality suppliers during this economic downturn. We expect to grow our market share when steel demand recovers by serving our customers from positions of strength."
Founded in 1954, Olympic Steel is a leading US steel service center, operating 17 facilities focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat rolled sheet, coil and plate steel products.