CHICAGO Metals service
center operator Olympic Steel Inc. posted net income of $5.16
million in the first quarter, down 17.1 percent from $6.23
million in the same period last year on revenue that slid 11.5
percent to $338.06 million from record sales of $382.05 million
in the first three months of 2012.
Lower steel prices and reduced
volume contributed to the decline in revenue, chairman and
chief executive officer Michael D. Siegal said May 3.
"Business activity sequentially
rebounded in the first quarter compared with the end of last
year," Siegal said. And even though steel prices also have
increased from the lows of late last year, "they are below
year-ago levels and are expected to remain soft."
Olympic Steels tubular and
pipe products segment again performed well in the first
quarter, Siegal said, with operating earnings climbing 4.9
percent even though sales declined 4.7 percent. In contrast,
operating earnings by the flat-rolled segment slumped 38.4
percent on sales that fell 12.9 percent.
However, the companys
start-up ventures have increasingly contributed to consolidated
profits as they continue to mature, according to Siegal.
Having essentially completed the
capital spending associated with the companys multiyear
growth plan, Olympic is now "focused on generating higher cash
flow and earnings," he said.
The Bedford Heights, Ohio-based company sold 292,000 tons of
flat-rolled products during first quarter, down 6.1 percent
from 311,000 tons a year earlier.