CHICAGO Service center
chain Olympic Steel Inc. posted a fourth-quarter net loss of
more than $10.1 million, largely the result of a $6.6-million
goodwill impairment charge related to flat products in its
southern operations, in contrast to net income of $565,000 in
the last three months of 2011.
Fourth-quarter sales of $291.72
million were down 8.8 percent from $319.94 million a year
"During 2012, we made
significant progress on a variety of growth and development
initiatives. We successfully ramped up several new facilities
and completed major capital projects to enhance future
profitability," chairman and chief executive officer Michael D.
Siegal said in a statement. "The year ended with a
disappointing quarter, however, as steel demand and pricing
declined in tandem with mounting political and fiscal
uncertainty, masking much of our operational headway."
The Bedford Heights, Ohio-based
processor and distributor posted full-year net income of $2.28
million, down nearly 91 percent from $24.97 million the
previous year despite a 9.7-percent increase in sales to more
than $1.38 billion.
"Entering 2013, we are
encouraged by recovering demand for steel products," Siegal
said. "Now, the vast majority of cash outlays associated with
the multiyear capital expansion projects are behind us, and our
focus is on harnessing their potential to increase earnings and
The companys inventories
were valued at $290 million at the end of 2012, up 4.4 percent
from $277.8 million a year earlier.