Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 18

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1C
Chunk 18
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 prices and a 1.7% decrease in sales volume. Average selling prices in 2024 decreased to $1,321 per ton, compared to $1,430 per ton in 2023.

Cost of materials sold decreased $99.1 million, or 10.3%, to $864.6  million in 2024 from $963.7 million in 2023. The decrease in cost of materials sold was due to decreased industry metals pricing 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 22.0% in 2024 from 21.1% in 2023. The average gross profit per ton sold decreased $10 per ton, or 3.3%, to $291 in 2024 from $301 in 2023. The increase in gross profit as a percentage of net sales is a result of the average cost of inventory decreasing more quickly than the average selling prices as discussed above in Results of Operations, to the value-added acquisitions from 2023 having a continued positive impact on gross profit as well as the November 11, 2024 acquisition of Metal Works.

Operating expenses in 2024 increased $5.3 million, or 2.4%, to $228.1  million from $222.8  million in 2023. As a percentage of net sales, operating expenses increased to 20.5% in 2024 from 18.3% in 2023. Operating expenses increased primarily due to the November 11, 2024 acquisition of Metal Works, increased operating costs related to distribution and depreciation and the absence of year-over-year ERCs provided through CARES Act in 2023.

Operating income totaled $16.4 million, or 1.5% of net sales, in 2024 compared to operating income of $34.6 million, or 2.8% of net sales, in 2023.

     36

Tubular and pipe products

The following table sets forth certain income statement data for the tubular and pipe products segment for the years ended December 31, 2024 and 2023 (dollars shown in thousands).

      2024 

      2023 

     % of net sales

     % of net sales

      Net sales