The following is a summary of the Olympic Steel, Inc. (ZEUS) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Olympic Steel reported Q1 sales of $527 million and a net income of $8.7 million, with all segments contributing to an adjusted EBITDA of $23.7 million.

• Despite a sequential 9% increase in shipping volumes from Q4 2023, significant pricing challenges led to a dip in realized prices.

• The index pricing for hot-rolled steel witnessed a sharp fall by 31% between January and mid-March.

• Q1 operating expenses were slightly higher as compared to Q1 2023, totaling $103.2 million.

Business Progress:

• Despite pricing challenges, the company managed to maintain its margins and outpace market shipments across all product lines.

• Anticipating an increase in outsourcing by industrial manufacturers, the company is in a position to accelerate growth through strategic investments in people, technology, and equipment.

• Strengthening the fabrication capabilities, industry veteran Max Fitzgerald has been hired as Vice President of Fabrication.

• The company plans to invest in more efficient equipment, automation, and software.

• With a strong balance sheet and access to ample capital, the company plans to continue investing in organic growth, automation opportunities, and mergers and acquisitions.

• For 2024, a strong demand is projected, with the company supporting this through a capital expenditure of $30 million.

More details: Olympic Steel IR

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