Company: ZEUS
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001437749-25-024377
Chunk: 32

Company: OLYMPIC STEEL INC
Filing Date: 2025-08-01
Form: 10-Q
Item: Part I, Item 8
Chunk 32
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 operating expenses in the tubular and pipe products segment decreased $2.5 million and Corporate expenses increased $0.2 million in the second quarter of 2025 compared to the second quarter of 2024. The increase in operating expenses on a dollar basis was primarily attributable to the inclusion of MetalWorks operating expenses in 2025. 

Operating expenses in the first six months of 2025 increased $13.3 million, or 6.4%, to $221.1 million from $207.8 million in the first six months of 2024. As a percentage of net sales, operating expenses increased to 22.4% for the first six months of 2025 from 19.7% in the first six months of 2024. Operating expenses in the specialty metals flat products segment increased $1.0 million, operating expenses in the carbon flat products segment increased $15.5 million, operating expenses in the tubular and pipe products segment decreased $4.0 million and Corporate expenses increased $0.7 million in the first six months of 2025 compared to the first six months of 2024. The increase in operating expenses on a dollar basis was primarily attributable to the inclusion of MetalWorks operating expenses in 2025.

Interest and other expense on debt totaled $4.0 million, or 0.8% of net sales, in the second quarter of 2025 compared to $4.4 million, or 0.8% of net sales, in the second quarter of 2024. Interest and other expense on debt totaled $8.1 million, or 0.8% of net sales, in the first six months of 2025 compared to $8.4 million, or 0.8% of net sales, in the first six months of 2024. The decrease in the first six months of 2025 compared to the first six months of 2024 was due to a lower effective borrowing rate, partially offset by higher average borrowings. Our effective borrowing rate, exclusive of deferred financing fees and commitment fees, was 5.8% for the first six months of 2025 compared to 7.1% for the first six months of 2024.

In the second quarter of 2025, income before income taxes