Olympic Posts Record Sales in Second Quarter

Both net income and sales were 27% higher year-on-year at $37.6 million and $709 million, respectively.

“The continued strength of our three business segments in the second quarter drove another record-breaking performance for Olympic Steel. … During the second quarter, Specialty Metals achieved record quarterly sales and earnings, Pipe and Tube continued its run of strong results, and our Carbon Flat business delivered strong EBITDA,” CEO Richard Marabito said.

Tons sold in both its carbon flats and specialty metals flats segments were lower YoY, with carbon flats down 14% to 210,604 tons and specialty flats down 4.5% to 38,386 tons. Average selling prices were higher, however, in both segments at $1,760 per ton and $5,913 per ton, respectively.

“While metal pricing is declining during the third quarter, we remain optimistic regarding underlying demand and our ability to consistently produce earnings in all market cycles,” Marabito added.

The company is investing in all three of its business segments. It is adding a second automotive stamping line in Winder, Ga.; expanding its pipe and tube facility in Des Moines, Iowa, with a 30,000-square-foot addition; and has leased an 80,000-square-foot white metals fabrication facility in Bartlett, Ill. It is also investing further in automation as well as “actively seeking additional acquisitions.”

Headquartered in Cleveland, Olympic operates 42 facilities across North America.

By Laura Miller, Laura@SteelMarketUpdate.com