Steel Mills
Olympic Steel: Demand Improves in Q3
Written by Sandy Williams
November 5, 2020
Demand is back to 90 percent of pre-COVID levels after gaining strength in mid-September and continuing through October, said Olympic Steel CEO Richard Marabito in his third-quarter report to analysts and investors. Other than some normal seasonality, the service center expects demand to remain steady in the fourth quarter.
“Our third-quarter performance improved sequentially, as demand increased steadily throughout the quarter, and we successfully executed on our initiatives to improve inventory turns, lower expense run rates, and reduce our debt,” said Marabito. “While profitability lagged due to the impacts of COVID-19 on demand and falling metal prices, all of our segments were EBITDA-positive for the third quarter.”
Olympic Steel reported a net loss of $1.5 million in the third quarter compared to a loss of $6.5 million in Q2 2020 and net income of $591 million a year ago.
Sales for the quarter totaled $300 million, up from $248 million in Q2, but down from $384 million in Q3 2019. The year-over-year sales decline was due to lower average selling prices and volumes during the quarter.
“As we enter the final months of the year, we are seeing strengthening demand and tightening supply across the industry, which should support a positive pricing environment and result in Olympic Steel having a strong finish to 2020,” said Marabito.
Sandy Williams
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