Q3 2024 Olympic Steel Inc Earnings Call Transcript
Key Points
- Olympic Steel Inc (ZEUS) achieved EBITDA positive results across all three segments despite challenging market conditions.
- The company reduced its debt by approximately $12 million, bringing it down to $197 million.
- Olympic Steel Inc (ZEUS) has $304 million of credit availability to support growth initiatives.
- The company is actively investing in new equipment and automation to enhance safety, efficiency, and productivity.
- Olympic Steel Inc (ZEUS) continues to pursue acquisitions, with a focus on countercyclical and higher-margin opportunities.
- The company faced reduced demand from OEM customers, particularly in the heavy equipment sector, leading to lower volumes in the Carbon segment.
- Stainless steel surcharges fell to a 3.5-year low, creating pricing pressure in the Specialty Metals segment.
- Net income for the third quarter was $2.7 million, a significant decrease from $12.2 million in the same period last year.
- Operating expenses increased to $99 million from $91 million in the third quarter of 2023, partly due to the acquisition of Central Tube & Bar.
- Macroeconomic headwinds are expected to continue, with uncertainty surrounding the presidential election and future interest rate cuts.
Good morning, and welcome to the Olympic Steel 2024 third-quarter financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.
At this time, I would like to hand the conference call over to Rich Manson, Chief Financial Officer at Olympic Steel. Please go ahead, sir.
Thank you, operator. Welcome to Olympic Steel's earnings call for the third quarter of 2024. Our call this morning will be hosted by our Chief Executive Officer, Rick Marabito; and we will also be joined by our President and Chief Operating Officer, Andrew Greiff.
Before we begin, I have a few reminders. Some statements made on today's call will be predictive and are intended to be made as forward-looking within the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and may not reflect actual results. The company does not undertake to update such statements, changes in assumptions or changes in other factors affecting such forward-looking
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