Service Centers

Olympic's Q3 Earnings Up, But Sales Slide on Lower Metal Pricing

Written by Ethan Bernard

November 3, 2023

Olympic Steel’s earnings edged up in the third quarter vs. a year earlier, though sales declined due to lower metal pricing, the Cleveland-based metals service center said.

The company reported net income of $12.2 million in the quarter ended Sept. 30, up 2% from $12 million a year earlier, on sales that slipped 17% to $526.4 million.

Olympic Steel Inc.

Third quarter ended Sept. 3020232022% Change
Net sales$526.4$634.4-17%
Net income (loss)$12.2$122%
Per diluted share$1.06$1.042%
Nine months ended Sept. 30
Net sales$1,668.8$2,039.9-18%
Net income (loss)$37.1$87.0-57%
Per diluted share$3.21$7.53-57%
(in millions of dollars except per share)

“Metal pricing declines accelerated in the back half of the quarter due to added macroeconomic uncertainty, leading to softer-than-anticipated volumes across the industry,” CEO Richard Marabito said in a statement on Thursday, Nov. 2.

Despite the headwinds, Marabito said all Olympic segments were profitable, led by its pipe and tube business. The company has a carbon flat products, specialty metals flat, and tubular and pipe segment.

Marabito highlighted the Oct. 2 all-cash acquisition of Central Tube & Bar (CTB).

“The transaction, which marks the company’s seventh acquisition in the past six years, is our latest strategic investment focused on growing our portfolio of products and services with higher-margin returns,” he said.

Marabito added that CTB’s “value-added contract manufacturing capabilities, geographic reach in the South-Central US and complementary culture make the company an excellent fit for our pipe and tube business.”

Conway, Ark.-based CTB serves OEMs and fabricators across the mid-South region. It offers value-added fabrication services, including tube laser cutting, tube bending, robotic welding, flat laser burning, and brake press forming.

Looking ahead, Marabito said he’s optimistic about the long-term outlook for the US steel market and the company.

“We believe improved market pricing dynamics, continued industrial backlogs, and anticipated infrastructure spending, along with our ongoing efforts to invest in higher-return opportunities, will result in profitable growth in 2024,” he concluded.

Ethan Bernard

Ethan Bernard is a reporter and editor for Steel Market Update. He previously worked for American Metal Market as a copy editor in the New York office for two years starting in 2008. Later, he copy edited AMM’s monthly magazine on a freelance basis from 2015 until 2017. With experience in financial copywriting and textbook publishing, he holds a BA in Comparative Literature from UC Berkeley, and an MFA. in Creative Writing from New York University. He can be reached at ethan@steelmarketupdate.com or 724-759-7871.

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