Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 609

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 4
Chunk 609
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112.0 million, or 9.2%, to $1.1 billion in 2024 compared to $1.2 billion in 2023 and were 57.1% of total net sales in 2024 compared to 56.6% of total net sales in 2023. Tubular and pipe products net sales decreased $33.6 million, or 9.1%, to $335.7 million in 2024 compared to $369.3 million in 2023 and were 17.3% of total net sales in 2024 compared to 17.1% of total net sales in 2023. The decrease in net sales was due to a 9.2% decrease in consolidated average selling prices during 2024 compared to 2023 and a 0.9% decrease in consolidated volume. Average selling prices in 2024 were $1,837 per ton, compared to $2,023 per ton in 2023. The decrease in the average selling price is a result of the market pricing dynamics discussed above in Results of Operations.

Cost of materials sold decreased $194.2 million, or 11.5%, to $1.5 billion in 2024 from $1.7 billion in 2023. During 2024, we recorded LIFO income of $5.7 million compared to LIFO income of $8.3 million in 2023. The decrease in cost of materials sold in 2024 is primarily related to decreased average metals pricing in 2024 compared to 2023.

As a percentage of net sales, gross profit (as defined in footnote (b) in the table above) increased to 23.2% in 2024 from 21.9% in 2023. The increase in the gross profit as a percentage of net sales is due to the average costs of inventory decreasing more quickly than the average selling prices as discussed above in Results of Operations, as well as to the value-added acquisitions from 2023 having a continued positive impact on gross profit.

Operating expenses (as defined in footnote (c) in the table above) increased $7.5 million, or 1.9%, to $403.3 million in 2024 from $395.8 million in 2023. As a percentage of net sales, operating expenses increased to