Company: ZEUS
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001437749-25-004742
Chunk: 259

Company: OLYMPIC STEEL INC
Filing Date: 2025-02-21
Form: 10-K
Item: Item 1A
Chunk 259
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 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 $22.9 million, or 4.0% of net sales, in 2023.

     35

Carbon flat products

The following table sets forth certain income statement data for the carbon flat products segment for the years ended December 31, 2024 and 2023 (dollars shown in thousands, except per ton data):

      2024 

      2023 

     % of net sales

     % of net sales

      Direct tons sold 

     811,023

     820,144

      Toll tons sold 

     28,676

     34,048

      Total tons sold 

     839,699

     854,192

      Net sales 
      
     $
     1,109,100

     100.0

     $
     1,221,