Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 528

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 3
Chunk 528
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) in the table above) increased to 22.0% in 2024 from 21.1% in 2023. The average gross profit per ton sold decreased $10 per ton, or 3.3%, to $291 in 2024 from $301 in 2023. The increase in gross profit as a percentage of net sales is a result of the average cost of inventory decreasing more quickly than the average selling prices as discussed above in Results of Operations, to the value-added acquisitions from 2023 having a continued positive impact on gross profit as well as the November 11, 2024 acquisition of Metal Works.

Operating expenses in 2024 increased $5.3 million, or 2.4%, to $228.1  million from $222.8  million in 2023. As a percentage of net sales, operating expenses increased to 20.5% in 2024 from 18.3% in 2023. Operating expenses increased primarily due to the November 11, 2024 acquisition of Metal Works, increased operating costs related to distribution and depreciation and the absence of year-over-year ERCs provided through CARES Act in 2023.

Operating income totaled $16.4 million, or 1.5% of net sales, in 2024 compared to operating income of $34.6 million, or 2.8% of net sales, in 2023.

     36

Tubular and pipe products

The following table sets forth certain income statement data for the tubular and pipe products segment for the years ended December 31, 2024 and 2023 (dollars shown in thousands).

      2024 

      2023 

     % of net sales

     % of net sales

      Net sales 
      
     $
     335,718

     100.0

     $
     369,342

     100.0

      Cost of materials sold (a) 

     219,672

     65.4

     247,212

     66.9

      Gross profit (b) 

     116,046

     34.6

     122,130

     33.1

      Operating expenses (c) 

     87,237

     26.0

     81,438

     22.1

      Operating