CHICAGO Processor and
distributor Olympic Steel Inc. cited falling prices as a drag
on second-quarter net income, which fell 43 percent to $4.53
million despite sales jumping 22.9 percent from a year earlier
to $367.37 million.
"We are pleased with our sales
and market share growth in the second quarter," chairman and
chief executive officer Michael D. Siegal said Thursday.
However, he noted that falling
prices for both carbon and nickel products, as well as costs
associated with not-fully-operational start-ups, negatively
"We are focused on increasing
cash flows and reducing debt, and look to the future
contributions of our 2012 start-up locations in Gary, Ind.;
Mount Sterling, Ky.; Monterrey, Mexico; Kansas City, Mo., and
Streetsboro, Ohio," he said.
Romeoville, Ill.-based Chicago
Tube & Iron, which Olympic Steel acquired in July 2011,
continues to add to Olympics earnings and will receive
additional investments in facilities and equipment, the company
First-half net income totaled
$10.76 million, down 41.1 percent from the same period last
year despite a 26.3-percent sales increase to $749.42
The Bedford Heights, Ohio-based
company ended June with inventories valued at $312.3 million, a
12.4-percent from $277.8 million at the start of the year.
Olympic Steel plans to reduce its inventory during the second
half, chief financial offer and treasurer Rick Marabito said
during the companys conference call Thursday.