Olympic Steel Reports 2007 First Quarter Sales and Earnings Results.CLEVELAND -- Olympic Steel, Inc., (Nasdaq:ZEUS), a national steel service center, today announced its financial results for the first quarter of 2007. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter of 2007 totaled $259.4 million, an 8.6% increase from the $238.9 million for the first quarter a year ago. First quarter 2007 net income totaled $5.3 million, or $0.49 per diluted share, compared to net income of $8.0 million, or $0.76 per diluted share for last year's first quarter. Tons sold decreased 7.9% to 312 thousand from 338 thousand in the first quarter of 2006, in line with the Metals Service Center Institute statistics of a 7.4% decline in year-over-year flat rolled shipments for the first quarter of 2007. Olympic Steel's Board of Directors approved a regular quarterly cash dividend of $.03 per share to be paid to shareholders of record as of June 1, 2007, and distributed on June 15, 2007. Commenting on the results, Chairman and Chief Executive Officer Michael D. Siegal, stated, "We are pleased to report improved sales and earnings performance over the fourth quarter of 2006. The first quarter carbon steel market was quite challenging, as the year began with high inventories at steel service centers, causing a very competitive landscape." "Looking forward, carbon imports continue to be low, steel-making input costs such as scrap and pellets have risen, service center inventories are now at more balanced levels, and demand appears to be slowly recovering, leading to a potential improving price and earnings environment for the second quarter of 2007. On a longer-term view, we are increasing our capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. in new equipment, facilities and technology solutions to support future growth. In 2007, we have placed orders for a new Red Bud stretcher stretcher /stretch·er/ (strech´er) a contrivance for carrying the sick or wounded. stretch·er n. leveler Leveler Member of a republican faction in England during the English Civil Wars and Commonwealth. The name was coined by the movement's enemies to suggest that its supporters wished to “level men's estates. cut-to-length line in Minneapolis, and new laser, plasma, and machining equipment in Cleveland and Chambersburg to support our growing value-add services. We have also broken ground on an expansion to our existing Iowa facility, and our previously announced new IT system project is proceeding on plan," concluded Mr. Siegal. A simulcast of Olympic Steel's 2007 first quarter earnings conference call may be accessed via the Investor Relations Investor relations The process by which the corporation communicates with its investors. section of the Company's website at www.olysteel.com. The simulcast will begin at 10:00 a.m. Eastern Time today and a replay of the call will be available for 14 days thereafter. Founded in 1954, Olympic Steel is a leading U.S. steel The United States Steel Corporation (NYSE: X) is an integrated steel producer with major production operations in the United States and Central Europe. The company is the world's seventh-largest steel producer ranked by sales (see list of steel producers). service center focused on the direct sale and distribution of large volumes of processed carbon, coated and stainless flat-rolled sheet, coil and plate steel products. Headquartered in Cleveland, Ohio "Cleveland" redirects here. For the Cleveland metropolitan area, see . For other uses, see Cleveland (disambiguation). Cleveland is a city in the U.S. state of Ohio and the county seat of Cuyahoga County, the most populous county in the state. , the Company operates 16 facilities. For further information, visit the Company's web site at http://www.olysteel.com. It is the Company's policy not to endorse any analyst's sales or earnings estimates. Forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. in this release are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. Forward-looking statements are typically identified by words or phrases such as "may," "will," "should," "expect," "anticipate," "intend," "plan," "believe," "estimate," "potential," or "continue," as well as the negative of these terms or other similar expressions. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements. Such risks and uncertainties include, but are not limited to: general and global business, economic and political conditions; competitive factors such as the availability and pricing of steel, industry inventory levels, and rapid fluctuations in customer demand and pricing; the cyclicality and volatility within the steel industry; the ability of customers (especially in the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. ) to maintain their credit availability; layoffs or work stoppages by the Company's, suppliers' or customers' personnel; the availability and cost of transportation and logistical services; equipment installation delays or malfunctions; the successes of the Company's capital investments, efforts and initiatives to increase sales volumes, improve cash flows and reduce debt, maintain or improve inventory turnover, and reduce costs; the timing and outcome of efforts and ability to liquidate To pay and settle the amount of a debt; to convert assets to cash; to aggregate the assets of an insolvent enterprise and calculate its liabilities in order to settle with the debtors and the creditors and apportion the remaining assets, if any, among the stockholders or owners of the OLP's remaining assets; the adequacy of our existing information technology and business system software and the success of implementing our new information system; customer, supplier, and competitor consolidation or insolvency; the post-acquisition integration of PS&W and the Company's ability to pay regular quarterly cash dividends. Further information on these and other risks and uncertainties is provided under Item 1A "Risk Factors" of the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and Quarterly Reports on Form 10-Q Form 10-Q See 10-Q. , which disclosure is incorporated herein by reference, and elsewhere in reports that the Company files or furnishes with the SEC. This release speaks only as of its date and the Company undertakes no obligation to publicly update forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent required by law. You are advised, however, to consult any further disclosures the Company makes on related subjects in its reports filed with or furnished to the SEC. [TABLE OMITTED] [TABLE OMITTED] |
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