Olympic Steel Reports 2010 Fourth Quarter and Full Year Financial Results

CLEVELAND, Feb. 24, 2011 (GLOBE NEWSWIRE) -- Olympic Steel, Inc. (Nasdaq:ZEUS),
a national steel service center, today announced its financial results for the
fourth quarter and year ended December 31, 2010.

Net sales for the fourth quarter of 2010 increased 55.4% to $215.2 million from
$138.5 million for the fourth quarter of 2009. Tons sold in the fourth quarter
of 2010 increased 31.0% to 254 thousand from 194 thousand in the fourth quarter
of 2009. Fourth quarter 2010 net loss totaled $1.6 million, or $0.15 per diluted
share, compared to a net loss of $2.6 million, or $0.24 per diluted share, for
last year's fourth quarter.

Net sales for the year ended December 31, 2010 increased by 53.8% to $805.0
million, compared to $523.4 million for 2009. Tons sold in 2010 increased 34.3%
to 969 thousand from 721 thousand in 2009. Net income for 2010 was $2.1 million
or $0.20 per diluted share, compared to a net loss of $61.2 million, or $5.62
per diluted share, for 2009. The 2010 results included a third quarter $2.1
million pretax bad debt charge related to an unexpected closure of a customer.
The 2009 results included $81.1 million of lower of cost or market pretax
charges in the aggregate to write down the value of inventory in the first half
of 2009.

Commenting on the results, Chairman and Chief Executive Officer Michael D.
Siegal stated, "Our 2010 shipments increased by 34% over 2009, which is
significantly greater than the total industry growth in steel shipments of 21%,
as reported in the Metals Service Center Institute's Market Activity Report. We
experienced strong momentum in material demand in the fourth quarter. Along with
announced price increases in all of our product lines beginning in November of
2010 and continuing still, our year-end inventory positions present additional
opportunities for market share growth and profitability into the coming year."

"Our strong balance sheet, along with our new $125 million, five-year, asset
based loan facility, allowed us to strategically invest in growth initiatives
during 2010, including ordering a new temper mill and cut-to-length line to be
located on United States Steel Corporation's Gary Works site in Indiana, product
growth in specialty metals, and additional equipment and geographic expansion
with our new location in Mount Sterling, Kentucky, which is expected to begin
operating in March 2011. These timely investments bode well for revenue growth
and value creation in the recovering economic environment," concluded Mr.
Siegal.

Olympic Steel's Board of Directors approved a regular quarterly cash dividend of
$0.02 per share to be paid to shareholders of record as of March 1, 2011, and
distributed on March 15, 2011.

A simulcast of Olympic Steel's 2010 fourth quarter earnings conference call may
be accessed via the Investor Relations section of the Company's website at
www.olysteel.com. The simulcast will begin at 10:00 a.m. Eastern Time today and
a replay of the call will be available for 14 days thereafter.

Founded in 1954, Olympic Steel is a leading U.S. metals service center focused
on the direct sale and distribution of large volumes of processed carbon, coated
and stainless flat-rolled sheet, coil and plate steel and aluminum products.
Headquartered in Cleveland, Ohio, the Company operates 16 facilities. For
further information, visit the Company's web site at http://www.olysteel.com.

The Olympic Steel, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=3582.

It is the Company's policy not to endorse any analyst's sales or earnings
estimates. Forward-looking statements in this release are made pursuant to the
safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are typically identified by words or phrases such as
"may," "will," "anticipate," "should," "intend," "expect," "believe,"
"estimate," "project," "plan," "potential," or "continue," as well as the
negative of these terms or other similar expressions. Such forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those implied by such statements.
Readers are cautioned not to place undue reliance on these forward-looking
statements. Such risks and uncertainties include, but are not limited to: the
ability to successfully finalize an agreement with U.S. Steel for the purchase
of the Gary, Indiana facility and to place the facility in operation on the
expected timeframe; fluctuations in steel demand and steel pricing; general and
global business, economic, financial and political conditions, including the
ongoing effects of the global economic recovery; access to capital and global
credit markets; competitive factors such as the availability and pricing of
metal, industry shipping and inventory levels, and rapid fluctuations in
customer demand and metal pricing; the cyclicality and volatility within the
metal industry; the ability of our customers (especially those that may be
highly leveraged and those with inadequate liquidity) to maintain their credit
availability and to honor their agreements related to derivative instruments;
customer, supplier, and competitor consolidation, bankruptcy or insolvency;
reduced production schedules, layoffs or work stoppages by our own, our
suppliers' or our customers' personnel; the availability and costs of
transportation and logistical services; equipment installation delays or
malfunctions, including the new Gary, Indiana temper mill and cut-to-length
line; the amounts, successes and ability to continue our capital investments and
strategic growth initiatives and our business information system
implementations; the successes of our strategic efforts and initiatives to
increase sales volumes, maintain or improve working capital turnover and free
cash flows, reduce costs and improve inventory turnover and improve customer
service; the timing and outcome of inventory lower of cost or market
adjustments; the adequacy of our existing information technology and business
system software; the successful implementation of our new information systems;
the timing and outcome of our joint venture's efforts and ability to liquidate
its remaining real estate; our ability to pay regular quarterly cash dividends
and the amounts and timing of any future dividends; and our ability to generate
free cash flow through operations, reduce inventory and repay debt within
anticipated time frames, the recently enacted federal healthcare legislation's
impact on the healthcare benefits required to be provided by us and the impact
of such legislation on our compensation and administrative costs. Further
information on these and other risks and uncertainties is provided under Item 1A
"Risk Factors" of our Annual Report on Form 10-K and Quarterly Reports on Form
10-Q, which disclosure is incorporated herein by reference, and elsewhere in
reports that the Company files or furnishes with the SEC. This release speaks
only as of its date and the Company undertakes no obligation to publicly update
forward-looking statements, whether as a result of new information, future
events or otherwise, except to the extent required by law. You are advised,
however, to consult any further disclosures the Company makes on related
subjects in its reports filed with or furnished to the SEC.

OLYMPIC STEEL

SELECTED FINANCIAL INFORMATION

(in thousands, except per share data and ratios)

Three Months Ended Twelve Months Ended

December 31, December 31,

---------------------- -----------------------

2010 2009 2010 2009

---------- ---------- ---------- -----------

SUMMARY RESULTS OF

OPERATIONS: (audited) (audited)

Net sales $ 215,201 $ 138,497 $ 805,043 $ 523,395

Operating income (loss) (1,535) (3,944) 6,102 (97,327)

Income (loss) before income

taxes (2,211) (4,300) 3,797 (99,544)

---------- ---------- ---------- -----------

Net income (loss) $ (1,596) $ (2,612) $ 2,132 $ (61,228)

========== ========== ========== ===========

Earnings per share:

Net income (loss) per

share - basic $ (0.15) $ (0.24) $ 0.20 $ (5.62)

Net income (loss) per

share - diluted $ (0.15) $ (0.24) $ 0.20 $ (5.62)

December 31,

----------------------

2010 2009

---------- ----------

SUMMARY BALANCE SHEET DATA: (audited)

Accounts receivable, net $ 82,859 $ 51,269

Inventories, net 200,606 111,663

Net property and equipment 118,234 113,560

Total assets 429,438 338,448

Current liabilities 102,625 66,254

Total debt 55,235 --

Shareholders' equity 261,638 259,612

Shareholders' equity per

share 24.01 23.85

Debt-to-equity ratio .21 to 1 n/a

Twelve Months Ended

December 31,

----------------------

2010 2009

---------- ----------

OTHER DATA: (audited)

Capital expenditures 17,846 11,862

Cash dividends per share $ 0.08 $ 0.11

It is the Company's policy not to make quarterly or annual sales or earnings

projections

for external use and not to endorse any analyst's sales or earnings estimates.

OLYMPIC STEEL

RESULTS OF OPERATIONS

(in thousands, except per share and tonnage
data)

Three Months Ended December 31,
Twelve Months Ended December 31,
--------------------------------------
---------------------------------------

2010 2009
2010 2009
------------------ ------------------
----------------- --------------------
(audited)
(audited)

Tons sold

Direct 230,594 174,576
878,323 644,752

Toll 23,712 19,604
90,300 76,226
---------- ----------
---------- -----------

254,306 194,180
968,623 720,978
% change 31.0% (15.1%)
34.3% (38.1%)

Net sales $ 215,201 $ 138,497 $
805,043 $ 523,395
% change 55.4% (45.4%)
53.8% (57.4%)

Costs and expenses

Cost of materials sold

(exclusive of items shown

below, includes $81,063

of inventory lower of

cost or market

adjustments for the nine

months ended September

30, 2009) 176,722 82.1% 111,703 80.7%
650,398 80.8% 502,134 95.9%
Warehouse and processing 14,421 6.7% 10,337 7.5%
51,478 6.4% 39,863 7.6%
Administrative and general 10,633 4.9% 8,773 6.3%
39,233 4.9% 33,956 6.5%
Distribution 5,095 2.4% 4,094 3.0%
19,407 2.4% 15,480 3.0%
Selling 4,957 2.3% 3,143 2.3%
19,802 2.5% 12,114 2.3%
Occupancy 1,380 0.6% 1,297 0.9%
5,320 0.7% 5,500 1.1%

Depreciation 3,528 3,094
13,303 11,675
---------- 1.6% ---------- 2.2%
---------- 1.7% ----------- 2.2%

Total costs and expenses 216,736 142,441
798,941 620,722
---------- 100.7% ---------- 102.8%
---------- 99.2% ----------- 118.6%

Operating income (loss) (1,535) (0.7%) (3,944) (2.8%)
6,102 0.8% (97,327) (18.6%)

Interest and other expense

on debt 676 356
2,305 2,217
---------- 0.3% ---------- 0.3%
---------- 0.3% ----------- 0.4%

Income (loss) before

income taxes (2,211) (1.0%) (4,300) (3.1%)
3,797 0.5% (99,544) (19.0%)

Income tax provision

(benefit) (615) (1,688)
1,665 (38,316)
---------- 27.8% ---------- 39.3%
---------- 43.9% ----------- 38.5%

Net income (loss) $ (1,596) $ (2,612) $
2,132 $ (61,228)
========== ==========
========== ===========

Earnings per share:

Net income (loss) per

share - basic $ (0.15) $ (0.24) $
0.20 $ (5.62)
========== ==========
========== ===========

Weighted average shares

outstanding - basic 10,913 10,898
10,905 10,887
========== ==========
========== ===========

Net income (loss) per

share - diluted $ (0.15) $ (0.24) $
0.20 $ (5.62)
========== ==========
========== ===========

Weighted average shares

outstanding - diluted 10,913 10,898
10,918 10,887
========== ==========
========== ===========

It is the Company's policy not to make quarterly or annual sales or
earnings projections
for external use and not to endorse any analyst's sales or
earnings estimates.

CONTACT: Richard T. Marabito
Chief Financial Officer
Telephone: (216) 292-3800
Fax: (216) 292-3974