Olympic Steel invested in its business, executed an acquisition plan, and, using strong cash flow, reduced debt by $110mn , the company said in a press release.
The firm is optimistic over progress made in advancing its strategy to diversify and strengthen its financial position, Olympic’s chief executive officer said.
In addition to its pipe and tube business segment’s exceptional profitability, the firm’s specialty metals business enjoyed its second-most profitable year in 2019—both despite challenging market conditions.
The company acquired two downstream companies, McCullough Industries and EZ-Dumper, which increased its carbon products group’s profitability.
Olympic attributed its discipline in operating expenses and inventory management to strong cash flow results, which reduced debt by 36pc last year.
Olympic sold 1.01mn nt (916,300mt) of carbon flat products and 142,000nt of specialty metals flat products in 2019, compared to 1.14mn nt and 136,000nt, respectively, the year prior.
In Q4 2019, 221,000nt of carbon flat products and 30,400nt of specialty metals flat products were sold, decreasing from 259,000nt and 35,000nt, respectively, in Q4 2018.
The company’s net sales totaled $1.58bn in 2019, decreasing by 8pc from $1.72bn in 2018. Sales for Q4 2019 totaled $320mn, down by 26pc from $430mn in Q4 2018.
Olympic’s reported net income of $3.86mn in 2019 declined from $33.76mn in 2018. This includes $3.7mn of LIFO proceeds in 2019, compared with $8.4mn of LIFO expenses in 2018.
The company’s net loss was $890,000 for Q4 2019 compared to a net loss of $1.32mn in Q4 2018. This includes $2.4mn of LIFO profits in Q4 of 2019, compared to $3.7mn of LIFO expenses in Q4 of 2018.