Release Date: February 21, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: What drove the impressive gross profit per ton in the carbon flat segment during the fourth quarter? A: Richard Manson, CFO, explained that the increase in gross profit was due to the expansion of end-use metal products companies like Metalworks and Metal Fab, which do not report tons sold. This expansion, along with a focus on growing the fabrication business and increased galvanized participation, contributed to the higher gross profit per ton.
Q: How is the pipe and tube segment expected to perform in the first quarter of 2025? A: Andrew Greiff, President and COO, stated that the first quarter is expected to be traditional, with new customer acquisitions and a shift towards greater fabrication. The segment aims for a 50/50 mix between distribution and fabrication, with investments in tube blazers supporting this growth.
Q: How will the increase in the Midwest transaction premium for aluminum impact the specialty metals segment? A: Andrew Greiff noted that while spot prices have increased due to tariffs, most of their aluminum business is contractual. The segment continues to grow, with most opportunities being on the contractual side, which helps mitigate the impact of spot price fluctuations.
Q: What synergies are anticipated from the Metalworks acquisition? A: Richard Marabito, CEO, highlighted that the main synergies include integration into Olympic Steel's supply chain, sourcing relationships, and first-stage processing capabilities. Additionally, Metalworks will be integrated into Olympic's systems and back-office operations, enhancing efficiency.
Q: How are tariffs expected to affect the metals industry and Olympic Steel's profitability? A: Richard Manson mentioned that while tariffs have led to price increases in the supply chain, their impact on profitability will likely be seen in late Q1 or early Q2. The company is monitoring developments closely, and any significant changes will depend on the implementation of tariffs.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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