Steel Mills
Olympic Positioned for Promising Q2
Written by Sandy Williams
April 30, 2014
Higher volumes increased Olympic Steel net sales 2.6 percent to $347 million in Q1 2014 from $338 million a year ago. Net sales increased sequentially by 19 percent despite adverse shipping conditions. Net income totaled $2.8 million, down from 5.16 million in 2013
Flat steel volume increased 3 percent y/y to 299,000 tons for the quarter for net sales of $287 million. Tubular product shipments increased but sales fell by a little more than $1 million to $61 million due to lower average prices.
Steel prices were under pressure during first quarter, falling in mid January and continuing for the next 60 days. Prices rebounded for carbon steel, nickel and stainless steel by the end of the quarter.
During the conference call, Chairman and CEO Michael Siegal said order books are picking up going into the second quarter but it was too early to comment on Q2 based on April. He said Olympic Steel is seeing double digit growth from March.
David Wolfort, president and COO, commented that, “prices have recovered the entire first quarter dip, and now offers are currently being made at the highest levels of the year. Channels remain tight with reasonable to lean service center inventories as a result well publicized supply side disruptions, further supporting higher market prices.” He added, “The set up for the next few months looks promising. We are well positioned with inventory and available capacity through our facility network and a healthy pricing environment.”
Weather issues impacted revenue from multiple-day site closures and increased transportation costs. Occupancy costs included $300,000 of incremental costs associated with heat and building maintenance and snow coverage.
Siegal said the company’s growth strategy is focused on value added opportunities that mitigate distribution costs.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Algoma to shut down line in Ontario ahead of EAF start
The 106” Mill was part of Algoma's plate and strip combination facility.
Nippon trial vs. US government to begin early next month: Report
Nippon Steel’s litigation against the US government is set to begin in early February, according to a report by Japan’s Kyodo News Agency. Nippon will file its opening brief on Feb. 3. And both parties will conclude their claims by March 17 in the US Court of Appeals for the District of Columbia Circuit, Kyodo […]
Nucor carbon targets certified by GSCC
Nucor’s “ambitious” carbon targets by the end of the decade and beyond have been certified by the Global Steel Climate Council (GSCC). The Charlotte, N.C.-based steelmaker used a base year of 2023 for its science-based emissions targets (SBET). It set an SBET of 0.975 metric tons (mt) of CO2 emissions per mt of hot-rolled steel […]
SSAB halts talks with Feds on Miss. green steel plant
The Department of Energy's Industrial Demonstrations Program page states that it is no longer moving forward with SSAB.
Cleveland-Cliffs CEO seeks ‘American solution’ for U.S. Steel
He said a new entity would operate under the U.S. Steel name and would retain its Pittsburgh headquarters.