Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 615

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 4
Chunk 615
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 the cost of materials sold. 

      (c) Operating expenses are calculated as total costs and expenses less the cost of materials sold. 

Net sales decreased $33.6 million, or 9.1%, to $335.7  million in 2024 from $369.3  million in 2023. The decrease in net sales was due to a 11.4% decrease in average selling prices partially offset by a 2.6% increase in sales volume during 2024 due, in part to the CTB acquisition.

Cost of materials sold decreased $27.5 million, or 11.1%, to $219.7  million in 2024 from $247.2  million in 2023. The decrease in cost of materials sold is due to decreased metals pricing discussed above in Results of Operations. As a result of continued decreasing prices, during 2024, our tubular and pipe products segment recorded $5.7  million of LIFO income, compared to $8.3  million of LIFO income recorded in 2023.

As a percentage of net sales, gross profit (as defined in footnote (b) in the table above) increased to 34.6% in 2024 compared to 33.1% in 2023. As a percentage of net sales, the LIFO income recorded in 2024 increased gross profit by 1.7% compared to the LIFO income recorded in 2023, which increased gross profit by 2.2%.

Operating expenses (as defined in footnote (c) in the table above) increased $5.8 million, or 7.1%, to $87.2  million in 2024 from $81.4  million in 2023. As a percentage of net sales, operating expenses increased to 26.0% in 2024 compared to 22.1% in 2023. Operating expenses increased primarily due to the October 2, 2023 acquisition of CTB, partially offset by lower year-over-year variable performance based compensation.

Operating income for 2024 totaled $28.8 million, or 8.6% of net sales, compared to $40.7 million, or 11.0% of net sales, in 2023.

Corporate expenses

Corporate expenses decreased $3.4 million