Olympic Steel, Inc. reported its financial results for the third quarter and the first nine months of 2024, highlighting a decline in net sales and profitability compared to the same periods in 2023. For the three months ended September 30, 2024, net sales totaled $469.996 million, a decrease of $56.415 million (10.7%) from $526.411 million in Q3 2023. For the nine months ended September 30, 2024, net sales were $1.523 billion, down $145.867 million (8.7%) from $1.669 billion in the prior year.
The company's total costs and expenses for Q3 2024 were $462.187 million, down from $505.526 million in Q3 2023. Operating income for the third quarter fell to $7.809 million (1.7% of net sales) from $20.885 million (4.0% of net sales) in the same quarter last year. Net income for Q3 2024 was $2.734 million, a significant drop from $12.230 million in Q3 2023, resulting in basic earnings per share of $0.23 compared to $1.06 in the prior year.
For the nine-month period, operating income decreased to $38.857 million (2.6% of net sales) from $64.380 million (3.9% of net sales) in 2023, with net income falling to $19.091 million from $37.121 million, leading to basic earnings per share of $1.64, down from $3.21.
The company’s gross profit margin improved slightly, with gross profit as a percentage of net sales rising to 22.7% in both the third quarter and the first nine months of 2024, compared to 21.3% and 21.6% in the respective periods of 2023. However, operating expenses increased, with Q3 2024 operating expenses rising to $99.0 million from $91.1 million in Q3 2023.
Strategically, Olympic Steel has expanded its product offerings through acquisitions, including the purchase of Metal-Fab, Inc. in January 2023, which enhanced its carbon flat products segment, and Central Tube and Bar in October 2023, which bolstered its tubular and pipe products segment. The company operates in three reportable segments: specialty metals flat products, carbon flat products, and tubular and pipe products.
As of September 30, 2024, total assets increased to $1.012 billion from $984.835 million at the end of 2023, while total shareholders' equity rose to $570.610 million from $555.478 million. The company reported cash and cash equivalents of $11.116 million, down from $13.224 million at the end of 2023.
Dividends declared per share increased to $0.150 for Q3 2024, up from $0.125 in Q3 2023, reflecting a commitment to returning value to shareholders despite the decline in profitability.
About OLYMPIC STEEL INC
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