Olympic Steel posts record results, remains optimistic

Despite declining carbon steel prices, US flatrolled and tubular service centre chain Olympic Steel is expressing optimism about first quarter business conditions as the stainless, aluminium, and pipe and tube markets remain robust.

The Cleveland-based stockist reports record results for Q4 and full-year 2021. Q4 net income of $24.9 million and sales of $625m pushed full-year income to $121.1m and sales to $2.3m. Income was up significantly from 2020’s net loss of $5.6m and sales were up 87%, Kallanish notes.

The company’s carbon flat product sales were up 3% year-on-year to 921,295 short tons in 2021, while sales of specialty flats rose 25% to 157,807 st. Average carbon flat selling prices jumped 90% on-year to $1,459/st while specialty selling prices rose 50% to $3,712/st.

“All three of our operating segments earned record ebitda in 2021, reflecting not only strong market demand for our products but also the benefits of our diversification and acquisition strategy,” says ceo Richard Marabito.

To minimise the impacts of market cyclicality, Olympic is working to broaden its offerings and expand into higher-margin products. The company has acquired five companies since 2018, including October’s purchase of Shaw Stainless and Alloy. Additionally, it divested its Detroit flatrolled metal operations last year.

Laura Miller USA