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Olympic Steel earnings soar in Q4

February 22, 2024

Olympic Steel

Fourth quarter ended Dec. 31	2023	2022	% Change
Net sales	$489.4	$520.0	-5.9%
Net earnings (loss)	$7.41	$3.96	87.1%
Per diluted share	$0.64	$0.34	88.2%
Twelve months ended Dec. 31
Net sales	$2,158.2	$2,560.0	-15.7%
Net earnings (loss)	$44.5	$90.9	-51.0%
Per diluted share	$3.85	$7.87	-51.1%

(in millions of dollars except per share)

Olympic Steel’s earnings jumped in the fourth quarter, even as the company dealt with “significant” price volatility in hot-rolled coil.

The company on Thursday reported net income of $7.4 million in Q4’23, up 87% from $3.96 million a year earlier on sales that fell 5.9% to $489.4 million.

Speaking about the full-year results, CEO Richard T. Marabito said in a press release, “Our pipe and tube business delivered its second most profitable year ever, and our carbon business showed its resiliency in navigating the pricing pressures of 2023.”

Regarding hot rolled, he said: “For the second year in a row, we withstood a hot-rolled carbon steel index pricing decline of more than 45% during the year.”

He noted that “despite significant pricing fluctuations, we continue to deliver on our commitment to achieve more consistent, profitable results.”

Looking ahead, Marabito was upbeat.

“As we head into 2024, Olympic Steel is stronger than ever,” he said. “We remain committed to our disciplines around working capital, operating expenses, cash flow and debt, while we seek opportunities to further expand our portfolio of higher-return, higher-value-add products.”

A breakdown of the company’s Q4 operating income by product is below.

Ethan Bernard

Ethan Bernard is managing 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.