Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 433

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 2
Chunk 433
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 pipe products segment is on the distribution of metal tubing, pipe, bar, valve and fittings and the fabrication of pressure parts supplied to various industrial markets. Through the acquisition of CTB, the tubular and pipe products segment further expanded its geographic footprint and extended its value-added contract manufacturing capabilities. The tubular and pipe products segment operates from ten locations in the Midwestern and Southern United States. The tubular and pipe products segment distributes its products primarily through a direct sales force. 

Corporate expenses

Corporate expenses are reported as a separate line item for segment reporting purposes. Corporate expenses include the unallocated expenses related to managing the entire Company (i.e., all three segments), including compensation for certain personnel, expenses related to being a publicly traded entity such as board of directors’ expenses, audit expenses, and various other professional fees.

Results of Operations

This section of this Annual Report on Form 10-K generally discusses 2024 and 2023 items and year-to-year comparisons between 2024 and 2023. Discussions of 2022 items and year-to-year comparisons between 2023 and 2022 that are not included in this Annual Report on Form 10-K can be found in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

2024 Compared to 2023

Our results of operations are impacted by the market price of metals. Metals prices fluctuate significantly and changes to our net sales, cost of materials sold, gross profit, cost of inventory and profitability, are all impacted by industry metals pricing.

Metals prices in our specialty metals products segment decreased during 2024 compared to 2023 due to decreases in metal surcharges experienced during 2024. The average price of stainless surcharges decreased 24.2% during 2024 compared to 2023. Metals index pricing for our carbon flat products segment decreased 40.3% between December 2023 and July 2024, with index prices remaining within a $40 per ton range during the second half of 2024. The decrease in year-over-year industry metals pricing reduced both our average selling prices and average cost of materials sold in each operating segment in 2024 when compared to 2023. Metals pricing for the tubular and pipe products segment lags behind the carbon flat