Thursday, August 5, 2010

Olympic Steel (Nasdaq:ZEUS) Earnings Miss on Higher Costs

Olympic Steel (Nasdaq:ZEUS) earnings disappointed, as income came in at $3.3 million, or 30 cents a share, while analysts, before charges, were expecting 46 cents a share.

Last year's earnings were a loss of $33.8 million, or $3.11 a share.

Revenue for the quarter rose and exceeded expectations, reaching $212.8 million, where analysts expected $200.6 million. That was an increase of 74 percent over last year in the same quarter.

The story for the quarter was the increased expenses and costs which ate into margins and earnings.

Chief Executive Michael Siegal said, "We expect to invest in growth initiatives in the second half of 2010, despite third quarter normal seasonal market softness."

No matter, they'll still have to deal with how to better manage costs to generate a better performance.

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