Steel Mills
Olympic Steel Earnings Down 73% in Q1
May 4, 2023
Olympic Steel’s first-quarter net earnings slid 73% from the same period last year, but the company sees customer demand remaining steady through the second quarter despite economic uncertainties.
The Cleveland-based metals service center reported net income of $9.9 million in Q1, off from $37.3 million in the same period last year, on net sales that fell 18% to $573.1 million.
“All three of our segments reported solid profitability, including the second-most-profitable quarter ever for our tubular and pipe products segment,” CEO Richard T. Marabito said in a statement.
The company has a carbon flat products, specialty metals flat, and tubular and pipe segment.
He noted the performance of Olympic’s newly acquired Metal-Fab business, included in their carbon segment.
“We will begin to see the full effect of Metal-Fab’s earnings in our second-quarter results, as the $4.6 million of acquisition-related expenses and adjustments are behind us, and synergistic benefits should begin in the second half of 2023,” Marabito said.
He said the company has “record availability under our $625-million revolving credit line with over $350 million to invest in organic growth, automation and acquisition opportunities that align with our strategic priorities for long-term success.”
In Q2, Marabito expects “customer demand to remain steady” and he anticipates that Olympic’s “diversification strategy will result in consistent profitability despite an unsettled economic outlook.”
By Ethan Bernard, ethan@steelmarketupdate.com
Latest in Steel Mills
Nippon could up investment in USS facilities to $7B: Report
It's the latest twist as the proxy battle heats up for Pittsburgh-based U.S. Steel.
Hybar expansion still on the table as Arkansas mill startup nears
As Hybar nears the completion of its $700-million rebar mill in Arkansas, the company said it is still “actively considering” building other steel facilities in the southern US.
Global steel production edges lower in February
February’s global raw steel output is tied with last December's for the fourth-lowest monthly production rate recorded over the past two years.
Fate of U.S. Steel hangs in the balance
The future of U.S. Steel remains unclear, but the proxy fight for control of the company is heating up. Shareholders will cast their votes on the company's future at the annual meeting in May.
Cliffs to idle Dearborn blast furnace, restart Cleveland furnace by July
Cleveland-Cliffs has decided to idle the steelmaking operations at its Dearborn Works in Michigan due to weak automotive demand.