Olympic Steel stocks rise despite OLP closing

Olympic Steel stocks rise despite OLP closing

Olympic Steel Inc. stock jumped up $2.53 to $26.78 Monday afternoon after the company predicted a higher-than-expected fourth quarter profit. The Ohio-based steel service center predicted last Friday that its fourth quarter profits would total 60 to 71 cents per share. Olympic Steel also announced last Friday that it will cease operations at its joint venture with US Steel, the Olympic Laser Processing (OLP) facility in Detroit, Michigan. "Today's automotive business environment is challenging," explained Olympic CEO Michael D. Siega. "The decision to close OLP was based upon the failure of the laser welded blank marketplace to develop as originally believed by the domestic auto industry." Closing the facility and liquidating assets will incur a charge of $3.5 million, before taxes. Excluding the pre-tax charge, Olympic Steel shares would be 81 to 91 cents per share. Cleveland, Ohio-based Olympic Steel is a leading US steel service center which sells and distributes processed carbon, coated and stainless flat rolled sheet, coil, and plate steel products at its 12 facilities.