Steel Mills
Olympic Steel: Demand Improves in Q3
Written by Sandy Williams
November 5, 2020
Demand is back to 90 percent of pre-COVID levels after gaining strength in mid-September and continuing through October, said Olympic Steel CEO Richard Marabito in his third-quarter report to analysts and investors. Other than some normal seasonality, the service center expects demand to remain steady in the fourth quarter.
“Our third-quarter performance improved sequentially, as demand increased steadily throughout the quarter, and we successfully executed on our initiatives to improve inventory turns, lower expense run rates, and reduce our debt,” said Marabito. “While profitability lagged due to the impacts of COVID-19 on demand and falling metal prices, all of our segments were EBITDA-positive for the third quarter.”
Olympic Steel reported a net loss of $1.5 million in the third quarter compared to a loss of $6.5 million in Q2 2020 and net income of $591 million a year ago.
Sales for the quarter totaled $300 million, up from $248 million in Q2, but down from $384 million in Q3 2019. The year-over-year sales decline was due to lower average selling prices and volumes during the quarter.
“As we enter the final months of the year, we are seeing strengthening demand and tightening supply across the industry, which should support a positive pricing environment and result in Olympic Steel having a strong finish to 2020,” said Marabito.
Sandy Williams
Read more from Sandy WilliamsLatest in Steel Mills
Toyota Tsusho America to acquire Radius Recycling for $1.34 billion
The companies said Thursday that Radius shareholders will receive $30 per share in cash upon the deal’s closing, which is expected in the second half of this year.
Algoma resumes steel shipments to US, sees opportunity in tariffs
Algoma Steel has resumed shipments to the US, effective Friday, March 14. And the Canadian steelmaker sees a potential opportunity with the current tariff situation.
Algoma posts narrower Q4 loss, braces for tariff impact as US shipments pause
Algoma Steel's net loss narrowed in the fourth quarter vs. a year earlier amid economic uncertainty and tariff-related issues.
Evraz NA refutes report it falsified tests on plate for US military
Employees at Evraz North America, a subsidiary of Russia's Evraz plc, reportedly falsified quality control test results on armored plate for military vehicles. Evraz NA denies the claims.
Pacific Steel breaks ground on California rebar mill
Pacific Steel Group has broken ground on its Mojave Micro Mill in Southern California.