Olympic Steel reports third quarter 2005 earnings
Cleveland, Ohio-based Olympic Steel Inc., a national steel service center, reported third quarter 2005 net sales declined 15 percent from a year ago, due largely to falling steel prices. Net sales for the third quarter of 2005 totaled $208.4 million, a 14.7% decrease from the $244.1 million for the third quarter a year ago. Year-to-date net sales increased 12.3% to $734.4 million from $653.9 million. Third quarter 2005 net income totaled $2.2 million, or $0.21 per diluted share, compared to net income of $18.6 million, or $1.80 per diluted share for the third quarter 2004. Year-to-date net income was $14.8 million, or $1.42 per diluted share, compared to net income of $47.9 million, or $4.70 per diluted share in the first nine months of 2004. Michael D. Siegal, chairman and CEO said, " During the third quarter, carbon flat rolled pricing and margin compression reached its low point so far this year. We at Olympic are encouraged by the recent reductions in the steel service center industry's inventory levels as reported by the Metals Service Center Institute, coupled with announced producer price increases for carbon steel throughout the third quarter.” Commenting on Olympic's fourth quarter outlook, he went on to say, “Currently, demand appears solid entering the fourth quarter, leading us to believe in strong economic fundamentals for the marketplace. Our repositioned balance sheet is appropriate for these improving market conditions. We also anticipate using our financial position to take advantage of a consolidating service center industry." Founded in 1954, 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.