Steel Mills
Olympic Steel Earnings Down 73% in Q1
May 4, 2023
Olympic Steel’s first-quarter net earnings slid 73% from the same period last year, but the company sees customer demand remaining steady through the second quarter despite economic uncertainties.
The Cleveland-based metals service center reported net income of $9.9 million in Q1, off from $37.3 million in the same period last year, on net sales that fell 18% to $573.1 million.
“All three of our segments reported solid profitability, including the second-most-profitable quarter ever for our tubular and pipe products segment,” CEO Richard T. Marabito said in a statement.
The company has a carbon flat products, specialty metals flat, and tubular and pipe segment.
He noted the performance of Olympic’s newly acquired Metal-Fab business, included in their carbon segment.
“We will begin to see the full effect of Metal-Fab’s earnings in our second-quarter results, as the $4.6 million of acquisition-related expenses and adjustments are behind us, and synergistic benefits should begin in the second half of 2023,” Marabito said.
He said the company has “record availability under our $625-million revolving credit line with over $350 million to invest in organic growth, automation and acquisition opportunities that align with our strategic priorities for long-term success.”
In Q2, Marabito expects “customer demand to remain steady” and he anticipates that Olympic’s “diversification strategy will result in consistent profitability despite an unsettled economic outlook.”
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Mills
USW seeks clarity on plans for Granite City Works
The United Steelworkers union has asked U.S. Steel to elaborate on its Granite City Works plans following reports that the steelmaker is ending processing at the facility.
Nucor maintains plate prices, opens October order book
Nucor aims to keep plate prices flat for a seventh straight month with the opening of its October order book.
ArcelorMittal Mexico to import from sister mills as it works to resume DRI production
ArcelorMittal has partially restarted operations at its direct reduction plant in Lazaro Cardenas, Michoacan. An explosion on Aug. 18 rocked the massive steelworks on Mexico’s Pacific coast, impacting production of direct-reduced iron (DRI).
Fall maintenance outages are coming in hot
Labor Day has passed, the sun is starting to set a little earlier each day, and cooler weather has begun to find its way down to many of us across North America. And you know what that means for the steel industry… Fall maintenance outages!
AISI: Domestic steel production ticks up
US raw steel production ticked up in the week ending on Sept. 6 after a decrease the week before, according to the most recent data from the American Iron and Steel Institute (AISI).