Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 16

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1C
Chunk 16
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 in our specialty metals flat product segment increased 2 thousand tons, or 1.7%, to 118 thousand tons in 2024 from 116 thousand tons in 2023. We do not report tons sold for our end-use products. 

Net sales in our specialty metals flat products segment decreased $70.9 million, or 12.5%, to $496.9  million in 2024 from $567.7  million in 2023. The decrease in sales was due to a 13.9% decrease in average selling prices partially offset by a 1.7% increase in sales volume during 2024 compared to 2023. Average selling prices in 2024 decreased to $4,228 per ton, compared to $4,912 per ton in 2023. The decrease in the year-over-year average selling price per ton is a result of the decreased industry metals pricing discussed above in Results of Operations.

Cost of materials sold decreased $67.6 million, or 14.3%, to $406.2  million in 2024 from $473.8  million in 2023. The decrease in cost of materials sold was due to the decrease in 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 18.2% in 2024 from 16.5% in 2023. The average gross profit per ton sold totaled $771 in 2024 compared to $813 in 2023. The increase in the gross profit as a percentage of net sales is due to the average cost of inventory decreasing more quickly than the average selling prices as discussed above in Results of Operations.

Operating expenses (as defined in footnote (b) in the table above) decreased $0.2 million, or 0.2%, to $70.9  million in 2024 from $71.1  million in 2023. As a percentage of net sales, operating expenses increased to 14.2% of net sales in 2024 from 12.5% in 2023. The decrease in operating expenses was primarily attributable to lower year-over-year variable performance-based incentive compensation.

Operating income for 2024 totaled $19.7 million, or 4.0% of net sales, compared to