WRAPUP 1-Olympic Steel, Universal Stainless post Q1 losses

* Olympic, Universal posts Q1 losses

* Olympic Q1 sales halve; cuts dividend

* Universal sales down 25 percent

* Olympic shares down 7 percent; Universal trading flat

April 29 (Reuters) - Steel companies Olympic Steel Inc (ZEUS.O) Universal Stainless & Alloy Products Inc (USAP.O) swung to a first-quarter loss, weighed down by declining demand and pricing, as well as inventory-related write-downs.

Olympic Steel also slashed its quarterly dividend by 3 cents to 2 cents a share and said it expects second-quarter sales to be weaker than in the first quarter, due to low order entry and a drop in its backlog.

The company, however, did not provide a detailed outlook for the current quarter, citing "unprecedented uncertainty" in the industry.

The global recession has crippled steel demand in construction, vehicle manufacturing and other industries, forcing steelmakers to cut production sharply, shelve investment plans and lay off workers.

Olympic Steel posted a net loss of $25.5 million, or $2.34 a share, compared with net income of $13.2 million, or $1.21 a year ago. Net sales halved to $140.9 million in the quarter.

Universal Stainless also reported a loss of $3.8 million, or 57 cents a share, from a profit of $4.7 million, or 70 cents a share, in the previous year.

The industry has undergone a dramatic about-face since this time last year, when worldwide steel prices shot up 50 percent in the first half of 2008, leaving steel companies with higher cost inventory amidst slumping demand.

While Olympic Steel recorded a charge of $30.6 million related to inventory write downs, Universal Stainless took a hit of $1 million from stock inventory and $1.5 million from the sharp decline in raw material costs.

Universal Stainless also recorded a $1.9 million increase to its bad debt reserve due to contract delays.

Olympic Steel's shares dropped 13 percent to $17.25 in early trade, but later recouped some of their losses to trade down $1.41 at $18.59 Wednesday morning on Nasdaq. Shares of Universal Stainless were trading almost flat at $12.26

For more details, please click [ID:nWNAB0001] (Reporting by Antonita Madonna Devotta in Bangalore; Editing by Anil D'Silva)