UPDATE 1-Olympic Steel Q2 profit disappoints Street

* EPS $0.30 vs est $0.46

* Rev up 74 pct, above est

* Shares down 3 pct

Aug 5 (Reuters) - Olympic Steel Inc's (ZEUS.O) second-quarter profit fell short of Wall Street estimates as the steel products distributor's costs and expenses rose.

The company posted second-quarter net income of $3.3 million, or 30 cents a share, compared with a loss of $33.8 million, or $3.11 a share, a year ago.

Revenue rose 74 percent to $212.8 million, helped by an increase in tons sold during the quarter.

Analysts on average expected earnings of 46 cents a share, before items, on revenue of $200.6 million, according to Thomson Reuters I/B/E/S.

Costs and expenses were up 18 percent to $207.2 million.

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

Shares of the Ohio-based company were down 3 percent at $25.27 in early morning trade on Nasdaq. (Reporting by Vinay Sarawagi in Bangalore; Editing by Prem Udayabhanu) ((vinay.sarawagi@thomsonreuters.com; within U.S. +646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: vinay.sarawagi.reuters.com@reuters.net))