Olympic Steel Reports Record Third Quarter Net Sales and Financial Results for the...

Olympic Steel Reports Record Third Quarter Net Sales and Financial Results for
the Three and Nine Months Ended September 30, 2011

CLEVELAND, Nov. 4, 2011 (GLOBE NEWSWIRE) -- Olympic Steel, Inc., (Nasdaq:ZEUS),
a national metals service center, today announced record third quarter net sales
and reported its financial results for the third quarter and nine months ended
September 30, 2011.

Net sales for the third quarter of 2011 totaled $348.5 million, our highest ever
for a third quarter. Net sales increased 67% from $209.2 million for the third
quarter of 2010, and increased by $49.5 million over the second quarter of 2011.
Third quarter 2011 net income totaled $6.1 million, or $0.56 per diluted share,
compared to a net loss of $1.2 million, or $0.11 per diluted share, in last
year's third quarter. The 2011 financial results include the results of Chicago
Tube and Iron (CTI), which was acquired by the Company on July 1, 2011. CTI's
third quarter sales totaled $61.4 million.

Third quarter 2011 cost of goods sold includes $1 million related to a CTI
purchase price accounting adjustment to write-up the value of certain CTI
inventory to fair value at July 1, 2011. The inventory adjustment had a negative
impact of $0.06 on third quarter 2011 earnings per share. Additionally, the
third quarter 2011 consolidated effective income tax rate was 12.2% as a result
of changes in unrecognized tax benefits during the quarter. The income tax
benefit had a positive impact of $0.17 on third quarter 2011 earnings per share.

Net sales for the first nine months of 2011 totaled $941.9 million, our second
highest ever nine-month revenue total. Net sales increased 59.7% from $589.8
million for the first nine months of 2010. For the first nine months of 2011,
net income increased by $20.7 million, or 555%, to $24.4 million, or $2.23 per
diluted share, compared to net income of $3.7 million, or $0.34 per diluted
share, for last year's first nine months.

Commenting on the results, Chairman and Chief Executive Officer Michael D.
Siegal stated, "Our 2011 financial results and record third quarter sales
benefited from strong overall performance and the inclusion of Chicago Tube and
Iron, which was acquired on July 1, 2011. CTI accelerates our market share
growth, and was immediately accretive to our third quarter earnings. We also
continue to successfully execute on our previously announced strategic
investments. Through the first nine months of 2011, our capital spending has
totaled $25 million, including new equipment, successful information system
infrastructure rollouts, and facility startups in Gary, Indiana; Mount Sterling,
Kentucky; Monterrey, Mexico; Kansas City, Missouri; Roseville, Minnesota; and
Streetsboro, Ohio. We confidently look forward to our new Gary temper mill
facility opening on time and on budget in early 2012, with 150,000 incremental
tons of capacity once fully operational. Our balance sheet remains strong with
our new five-year, $335 million credit facility providing a foundation for
continued growth and value creation."

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

A simulcast of Olympic Steel's 2011 third 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. The
Company's CTI subsidiary is a leading distributor of steel tubing, bar, pipe,
valves and fittings, and fabricates pressure parts for the electric utility
industry. Headquartered in Cleveland, Ohio, Olympic Steel currently operates
from 29 facilities in North America. 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 integrate CTI and achieve the expected results of the
acquisition; the ability to retain CTI's management team and CTI's relationships
with customers and suppliers; the ability to successfully place the new Gary,
Indiana facility in operation during the expected timeframe and achieve expected
results; the success of our new startups in Gary, Indiana; Mount Sterling,
Kentucky; Monterrey, Mexico; Roseville, Minnesota; Kansas City, Missouri; and
Streetsboro, Ohio; the ability to successfully integrate the newly leased
locations or newly acquired businesses into our operations and achieve expected
results; equipment installation delays or malfunctions, including the new Gary,
Indiana temper mill and cut-to-length line; the ability to comply with the terms
of the new asset-based credit facility and to make the required term-loan
payments; 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 customers (especially those
that may be highly leveraged and those with inadequate liquidity) to maintain
their credit availability; the ability of our customers 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; the amounts,
successes and our 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 our 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 timeframes; and
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 Nine Months Ended

September 30, September 30,

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

2011 2010 2011
2010
----------- ---------- -----------
----------
SUMMARY RESULTS OF

OPERATIONS: (unaudited) (unaudited)

Net sales $ 348,547 $ 209,185 $ 941,928 $
589,842

Operating income (loss) 9,315 (1,276) 40,527
7,637

Income (loss) before income

taxes 6,987 (1,878) 36,568
6,008
----------- ---------- -----------
----------

Net income (loss) $ 6,136 $ (1,237) $ 24,405 $
3,728
=========== ========== ===========
==========

Earnings per share:

Net income (loss) per share

- basic $ 0.56 $ (0.11) $ 2.23 $
0.34

Net income (loss) per share

- diluted $ 0.56 $ (0.11) $ 2.23 $
0.34

September 30, December

----------------------- 31,

2011 2010 2010

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

SUMMARY BALANCE SHEET DATA: (unaudited) (audited)

Accounts receivable, net $ 154,588 $ 96,213 $ 82,859

Inventories, net 293,585 181,348 200,606

Net property and equipment 182,768 114,613 118,234

Total assets 739,011 415,368 429,438

Current liabilities 172,136 93,742 102,625

Total debt 249,755 50,050 55,235

Shareholders' equity 286,074 263,241 261,638

Shareholders' equity per

share 26.23 24.16 24.01

Debt-to-equity ratio .87 to 1 .19 to 1 .21 to 1

Nine Months Ended

September 30,

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

2011 2010

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

OTHER DATA: (unaudited)

Capital expenditures 24,618 10,733

Cash dividends per share $ 0.06 $ 0.06

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 September 30, Nine
Months Ended September 30,
--------------------------------------
-------------------------------------

2011 2010
2011 2010
------------------ ------------------
------------------ -----------------
(unaudited)
(unaudited)

Net sales $ 348,547 $ 209,185 $
941,928 $ 589,842
% change 66.6% 72.0%
59.7% 53.2%

Costs and expenses

Cost of materials sold

(exclusive of items shown

below) 281,058 80.6% 171,730 82.1%
750,638 79.7% 473,676 80.3%
Warehouse and processing 19,471 5.6% 13,436 6.4%
51,432 5.5% 37,057 6.3%
Administrative and general 16,461 4.7% 9,388 4.5%
43,339 4.6% 28,600 4.8%
Distribution 8,080 2.3% 5,176 2.5%
20,427 2.2% 14,312 2.4%
Selling 7,209 2.1% 6,164 2.9%
18,140 1.9% 14,845 2.5%
Occupancy 2,297 0.7% 1,297 0.6%
5,790 0.6% 3,940 0.7%
Depreciation 4,434 1.3% 3,270 1.6%
11,413 1.2% 9,775 1.7%

Amortization 222 --
222 --
----------- 0.1% ---------- 0.0%
----------- 0.0% ---------- 0.0%

Total costs and expenses 339,232 210,461
901,401 582,205
----------- 97.3% ---------- 100.6%
----------- 95.7% ---------- 98.7%

Operating income (loss) 9,315 2.7% (1,276) (0.6%)
40,527 4.3% 7,637 1.3%

Other income and expense, net 91 --
91 --
----------- 0.0% ---------- 0.0%
----------- 0.0% ---------- 0.0%

Income (loss) before

financing cost and income

taxes 9,224 2.6% (1,276) (0.6%)
40,436 4.3% 7,637 1.3%

Interest and other expense on

debt 2,237 602
3,868 1,629
----------- 0.6% ---------- 0.3%
----------- 0.4% ---------- 0.3%

Income (loss) before income

taxes 6,987 2.0% (1,878) (0.9%)
36,568 3.9% 6,008 1.0%

Income tax provision

(benefit) 851 (641)
12,163 2,280
----------- 12.2% ---------- 34.1%
----------- 33.3% ---------- 37.9%

Net income (loss) $ 6,136 $ (1,237) $
24,405 $ 3,728
=========== ==========
=========== ==========

Earnings per share:

Net income (loss) per share

- basic $ 0.56 $ (0.11) $
2.23 $ 0.34
=========== ==========
=========== ==========

Weighted average shares

outstanding - basic 10,937 10,909
10,936 10,903
=========== ==========
=========== ==========

Net income (loss) per share

- diluted $ 0.56 $ (0.11) $
2.23 $ 0.34
=========== ==========
=========== ==========

Weighted average shares

outstanding - diluted 10,951 10,909
10,949 10,916
=========== ==========
=========== ==========

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