Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 690

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 6
Chunk 690
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2023. Metals pricing for the tubular and pipe products segment lags behind the carbon flat products segment by several months. Industry shipments overall were down over 2% in 2024 when compared to 2023.

Transactional or “spot” selling prices generally move in tandem with market price changes, while fixed selling prices typically lag and reset quarterly. Similarly, inventory costs (and, therefore, cost of materials sold) tend to move slower than market selling price changes due to mill lead times and inventory turnover impacting the rate of change in average cost. When average selling prices increase, and net sales increase, gross profit and operating expenses as a percentage of net sales will generally decrease. 

     33

Consolidated Operations

The following table sets forth certain consolidated income statement data for the years ended December 31, 2024 and 2023 (dollars shown in thousands):

      2024 

      2023 

      % of net sales 

      % of net sales 

      Net sales 
      
     $
     1,941,672

     100.0

     $
     2,158,163

     100.0

      Cost of materials sold (a) 

     1,490,491

     76.8

     1,684,663

     78.1

      Gross profit (b) 

     451,181

     23.2

     473,500

     21.9

      Operating expenses (c) 

     403,322

     20.7

     395,829

     18.3

      Operating income 

     47,859

     2.5

     77,671

     3.6

      Other loss, net 

     93

     0.0

     78

     0.0

      Interest and other expense on debt 

     16,461

     0.9

     16,006

     0.7

      Income before income taxes 

     31,305

     1.6

     61,587

     2.9

      Income taxes 

     8,325

     0.4

     17,058

     0.8

      Net income 
      
     $
     22,980

     1.2

     $
     44,529