US metals service center, Olympic steel, posted a Q1 2020 profit despite environmental challenges.
The company indicated that reducing expenses and improving inventory management resulted in some positive impacts during the quarter and noted that its strong balance sheet and liquidity kept the company strong through COVID-19-related uncertainty.
Operating from 30 facilities in North America, Olympic cut non-critical spending and reduced its workforce and inventory to correspond with current business levels. Richard T. Marabito, chief executive officer, Olympic Steel stated that the business finished the first quarter with improved liquidity, and about $112mn of cash available under its asset-based revolving credit facility.
However, the Cleveland, Ohio- headquartered company did not issue an earnings or revenue outlook guidance at this time.
Olympic’s carbon flat products sales dropped by 3.7pc to 263,110nt (238,689mt) from 273,171nt shipped in Q1 2019. The company shipped 34,570nt of specialty metals flat products in Q1 2020, a 3.4pc decline from 35,784nt sold in Q1 2019.
Olympic posted revenue of $354mn in Q1 2020, a 20.5pc decline compared to $446mn in the same quarter last year. Its net income for Q1 2020 totaled $593,000, a decline of 71pc compared to $2.1mn in the first quarter of 2019. Olympic’s operating income fell by 49.8pc to $3.1mn in Q1 2020 from $6.1mn in Q1 2019.