Olympic Steel reports second quarter earnings

Olympic Steel reports second quarter earnings

Cleveland, Ohio steelmaker Olympic Steel Inc. reported second quarter 2005 sales increased 8.4 percent due in part to reduced second quarter operating expenses and inventory reductions. Net sales were $241.5 million for the second quarter 2005, an increase over $222.8 million seen for the same period in 2004. Year-to-date net sales were reported as $526 million, a 23 percent increase from same period in 2004. Net income for the second quarter was reported as $3 million, or $0.29 per diluted share, compared to $18.5 million, or $1.82 per diluted share, for the second quarter 2004. Year-to-date 2005 net income was $12.6 million while year-to-date 2004 net income was $29.3. Michael D. Siegal, chairman and CEO said, "While the second quarter was challenging from a carbon flat rolled pricing and customer credit perspective, we are pleased with the results of our balance sheet and expense control management … We expect that our focus on balance sheet and expense management will continue the trends that we have seen so far this year." Commenting on Olympic’s outlook, Mr. Siegal said, "We anticipate some softness to persist in carbon flat rolled pricing during the seasonally slower third quarter. However, we are encouraged to finally see a meaningful drop in the service center industry's June inventory levels, and we anticipate further reductions through July. We believe that the continuation of the inventory correction may allow pricing pressures on carbon steel to subside later this year. We also believe that the currency adjustment by China is a positive development for many of our exporting customers." Olympic Steel is a leading U.S. steel service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products.