CLEVELAND, Aug. 9, 2012 (GLOBE NEWSWIRE) -- Olympic Steel, Inc. (Nasdaq:ZEUS), a national metals service center, today announced its financial results for the second quarter and six months ended June 30, 2012.
Net sales for the second quarter of 2012 totaled $367.4 million, a 22.9% increase from the $299.0 million for the second quarter of 2011. Net sales for the first half of 2012 totaled $749.4 million, a 26.3% increase from the $593.4 million for the first six months of 2011. Second quarter 2012 net income totaled $4.5 million, or $0.41 per diluted share, compared to $7.9 million, or $0.73 per diluted share, in last year's second quarter. First half 2012 net income totaled $10.8 million, or $0.98 per diluted share, compared to net income of $18.3 million, or $1.67 per diluted share, for last year's first half. The 2012 financial results include the results of Chicago Tube and Iron (CTI), which was acquired by the Company on July 1, 2011.
Commenting on the results, Chairman and Chief Executive Officer Michael D. Siegal stated, "We are pleased with our sales and market share growth in the second quarter. Earnings were impacted by degradation of pricing in both carbon and nickel products, and costs associated with startups not yet fully operational. We are focused on increasing cash flows and reducing debt, and look to the future contributions of our 2012 startup locations in Gary, Indiana; Mount Sterling, Kentucky; Monterrey, Mexico; Kansas City, Missouri; and Streetsboro, Ohio. Our capital spending on these projects concludes in 2012, and we then expect future annual capital spending levels to be below depreciation levels. We are also pleased with CTI and its continued accretion to earnings and the product diversity that the pipe and tube business provides. To date, we have been expanding our investments in CTI's facilities and equipment. The remaining four years on our credit facility provides us with strong future liquidity."
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