Olympic Steel Inc. (NASDAQ:ZEUS) Q3 2017 Earnings Conference Call - Final Transcript
Nov 08, 2017 • 10:00 am ET
Good morning, and welcome to the Olympic Steel 2017 Third Quarter Results Call.
Some statements made on today's call will be predictive and are intended to be made as forward-looking within the safe harbor protections of the Private Securities Litigation Reform Act of 1995 and may not reflect actual results. The company does not undertake to update such statements, changes in assumptions or changes in other factors affecting such forward-looking statements. Important assumptions, risks and uncertainties and other factors that could cause actual results to differ materially are set forth in the company's reports on forms 10-K and 10-Q, and press release filed with the Securities and Exchange Commission.
Today's live broadcast will be archived and available for replay on Olympic Steel's Web site. At this time, I'd like to introduce your host for today's call, Olympic Steel's Chairman and Chief Executive Officer, Michael Siegal. Please go ahead, Mr. Siegal.
Michael D. Siegal
Thank you, operator. Good morning, and thank you all for joining us to discuss Olympic Steel's 2017 financial performance in both the third quarter and the first nine months.
On the call with me this morning are Olympic Steel's President, David Wolfort, Chief Financial Officer, Rick Marabito, President of our Chicago Tube and Iron business, Don McNeeley, and Executive Vice President and Chief Operating Officer, Andrew Greiff. Since late last year our metal consuming markets have been recovering nicely and our customers expect strong demand to continue into 2018. With that we are pleased to announce our continued progress on profitable growth. Olympic Steel's performance this year is the direct result of our historic and ongoing investments in equipment, facilities, products and people.
Regardless of market conditions, strong capital management and execution in customer service has been essential for our growth strategies to be successful. As expected, all three of our reporting segments, carbon flat, specialty metals and pipe and tube, generated growth in shipping volumes and sales in the third quarter. Consolidated operating income improved in both the quarter and the first nine months of the year. Much of our growth, much of the current growth has been driven by our carbon flat product divisions. Shipping volume of carbon flat products was up 14% for Olympic Steel in both the quarter and the year-to-date periods. This was well ahead of the 3% growth in overall industry shipments as per the MSDI data. Specialty metals also outpaced the industry average with our shipments increasing more than 7% in the quarter and more than 9% in the first nine months.
Sales of our pipe and tubular products also rose sharply increasing 18% in both the third quarter and for the nine months period. Resulting from both strong shipping volumes and higher selling prices. Looking ahead to 2018, we have many reasons to be optimistic. Our philosophy has always been to manage the aspects of the business within our control and we have. Now the macroeconomic picture supported by GDP growth appears to be turning in our favor. For example, it