Company: ZEUS
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001437749-25-014325
Chunk: 33

Company: OLYMPIC STEEL INC
Filing Date: 2025-05-02
Form: 10-Q
Item: Part I, Item 8
Chunk 33
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2024. The decrease was due to the decreased market price for metals discussed above in Results of Operations.

As a percentage of net sales, gross profit (as defined in footnote (a) in the table above) increased to 24.8% in the first quarter of 2025 compared to 21.7% in the first quarter of 2024. The increase in the gross profit as a percentage of net sales in the first quarter of 2025 when compared to the first quarter of 2024 was due to average cost of inventory decreasing more than the average selling prices.

     26

Operating expenses in the first quarter of 2025 increased $8.4 million, or 14.8%, to $65.1 million from $56.7 million in the first quarter of 2024. The increase in operating expenses on a dollar basis was primarily attributable to the inclusion of MetalWorks operating expenses in 2025 and increased variable operating expenses due to increased sales volume.

Operating income in the first quarter of 2025 totaled $5.8 million, or 2.0% of net sales, compared to operating income of $8.7 million, or 2.9% of net sales, in the first quarter of 2024. 

Tubular and pipe products

The following table presents selected operating results for our tubular and pipe products segment for the periods indicated (dollars are shown in thousands):

      For the Three Months Ended March 31, 

      2025 

      2024 

      % of net 

      % of net 

      $ 

      sales 

      $ 

      sales 

      Net sales 
      
     $
     77,163

     100.0

     $
     96,133

     100.0

      Cost of materials sold (a) 

     50,361

     65.3

     64,333

     66.9

      Gross profit (b) 

     26,802

     34.7

     31,800

     33.1

      Operating expenses (c) 

     22,657

     29.3

     24,173

     25.2

      Operating income 
      
     $
     4,145

     5.4

     $
     7,