Cleveland, Ohio (September 6, 2000) – Olympic Steel, Inc. (Nasdaq: ZEUS) today announced that the Company expects third quarter revenues, tons, and gross margins to be lower compared to its second quarter and last year’s third quarter, and operating results to be below its expectations and analysts’ estimates. The Company now expects a loss for the third quarter of $0.38 to $0.42 per share. Earnings for the third quarter of 1999 were $0.08 per share.
The lower revenue forecast is mainly attributed to continued weakening order patterns in the Company’s automotive, transportation, and construction sectors and softening demand from other service centers. Gross margin dollars are being adversely affected by the continued downward pricing pressures in the steel marketplace. The Company expects to report a loss in the fourth quarter of 2000, but anticipates sales volumes and gross margins to improve over third quarter levels.
Final results for the third quarter ending September 30, 2000 are expected to be released on or about Thursday, October 19, 2000. At that time, the Company will hold an open conference call to discuss third quarter results.
Olympic Steel is a leading North American steel service center that has positioned itself for growth in a consolidating steel industry. It is experienced in the specialized processing and distribution of flat-rolled carbon and stainless steel products, as well as tubular steel products. Headquartered in Cleveland, Ohio, the company has over 1,000 employees in 15 locations serving nine geographic markets. For further information on Olympic Steel, Inc., visit the Company’s web site at http://www.olysteel.com.
Forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. 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 that speak only as of the date hereof. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive factors such as the availability and pricing of steel and fluctuations in demand, specifically in the automotive, transportation and construction markets; work stoppages by automotive manufacturers; potential equipment installation delays and malfunctions; and the successes of the Company’s strategic initiatives. Please refer to the Company’s Securities and Exchange Commission filings for further information.
Contact: Cathy S. Kish
Director-Investor Relations
ckish@olysteel.com
Telephone (216) 292-3800
Fax: (216) 682-4065
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