Cleveland-based metal processor, Olympic Steel anticipates improved business this year in view of recovering market conditions and metal pricing that has attained record high levels.

 

The company believes it is positioned for notably better profitability in Q1 2021 while focusing on its long-term strategy for increased business growth through acquisitions and investments in development opportunities. However, Olympic remains cautious about operational decisions that will help retain proficiency and has been adapting operations to cope with the changing industry dynamics, economic improvements, and continuing impacts from the COVID-19 pandemic.  

 

Olympic continues developing through its purchase of Action Stainless & Alloys in Dec 2020, which brings more product offerings and expands the company in Arkansas, Missouri, and Texas, driving growth in its specialty metals business.

 

The metal provider furnished its best performance for 2020 during Q4 2020 when shipping volumes drew near pre-pandemic levels and metals prices increased leading to rising sales in its three divisions.  

 

The processor’s carbon flat products sales declined by 11pc to 897,709nt (814,388mt) in 2020 from 1.01mn nt in 2019. Specialty metals flat products sales fell 10.7pc to 126,673nt from 141,828nt in 2019 during the same period. 

 

Carbon flat product sales in Q4 2020 tallied at 225,576nt 1.9pc above 221,446nt in the same prior-year quarter. Specialty metals flat products sales were up 12pc to 34,031nt in Q4 2020 from 30,439nt in Q4 2019.

 

Olympic’s net sales fell by 22pc to $1.23bn in 2020 from $1.58bn in 2019 and tallied at $332mn in Q4 2020, up 3.7pc  from $320mn in the prior-year quarter. The fourth-quarter increase was attributed to a 3pc rise in consolidated volumes versus the prior-year quarter.

 

The company reported a net loss of $5.6mn in 2020 against a net income of $3.86mn in 2019. Net income in the fourth quarter stood at $1.79mn compared to a net loss of $890,000 in Q4 2019. The company’s adjusted EBITDA dropped by 30.8pc to $22.13mn in 2020 from $31.97mn in 2019, while adjusted EBITDA surged by 189pc to $9.9mn in Q4 2020 from $3.4mn in Q4 2019.

Leave a Reply

Your email address will not be published.