Olympic Steel, a leading US metals service center, reported its financial results for the three months ended June 30, 2023, showcasing the success of its diversification strategy and investments in enhanced capabilities.Net income for the second quarter totaled $15.0 million, or $1.30 per diluted share, compared with net income of $37.6 million, or $3.26 per diluted share, in the second quarter of 2022. Despite lower metals prices and economic challenges, the company demonstrated resilience through its efforts to diversify product offerings and capitalize on higher-return opportunities. The Carbon segment achieved $18.4 million of Adjusted EBITDA for the quarter, and the Tubular and Pipe Products segment delivered its fourth-strongest quarter of profitability, earning $10.1 million of Adjusted EBITDA by meeting the growing demand for enhanced value-added processing capabilities.The second quarter results include the full earnings effect of Metal-Fab, the second largest acquisition in the company's history, added to their portfolio in January 2023. Metal-Fab significantly contributed to second-quarter earnings, and Olympic Steel anticipates benefiting further from supply chain synergies in the latter half of 2023. Operational enhancements, such as the new specialty metals and carbon fabricating facility in the Chicago market, further bolstered capabilities and production efficiency.With a robust balance sheet and substantial borrowing availability of over $340 million, Olympic Steel is actively exploring acquisitions and capital investments to advance their diversification strategy and drive additional profitable growth.While the near-term economic outlook remains uncertain, the company maintains optimism about the long-term prospects of the steel market, confident that the strategic measures taken have positioned Olympic Steel to deliver consistent results across all environments.
Olympic Steel, a leading US metals service center, reported its financial results for the three months ended June 30, 2023, showcasing the success of its diversification strategy and investments in enhanced capabilities.Net income for the second quarter totaled $15.0 million, or $1.30 per diluted share, compared with net income of $37.6 million, or $3.26 per diluted share, in the second quarter of 2022. Despite lower metals prices and economic challenges, the company demonstrated resilience through its efforts to diversify product offerings and capitalize on higher-return opportunities. The Carbon segment achieved $18.4 million of Adjusted EBITDA for the quarter, and the Tubular and Pipe Products segment delivered its fourth-strongest quarter of profitability, earning $10.1 million of Adjusted EBITDA by meeting the growing demand for enhanced value-added processing capabilities.The second quarter results include the full earnings effect of Metal-Fab, the second largest acquisition in the company's history, added to their portfolio in January 2023. Metal-Fab significantly contributed to second-quarter earnings, and Olympic Steel anticipates benefiting further from supply chain synergies in the latter half of 2023. Operational enhancements, such as the new specialty metals and carbon fabricating facility in the Chicago market, further bolstered capabilities and production efficiency.With a robust balance sheet and substantial borrowing availability of over $340 million, Olympic Steel is actively exploring acquisitions and capital investments to advance their diversification strategy and drive additional profitable growth.While the near-term economic outlook remains uncertain, the company maintains optimism about the long-term prospects of the steel market, confident that the strategic measures taken have positioned Olympic Steel to deliver consistent results across all environments.
