US service centre chain Olympic Steel expects cost management to spearhead its market strategy for 2016, Kallanish learns from the company’s year-end earnings outlook.

Olympic posted a net loss in 2015 of $26.8 million on sales of $1.2 billion. In 2014, Olympic recorded a loss of 19.1m on sales of $1.4 billion.

“Prior to the start of the year, we anticipated challenging industry conditions in 2015 and promptly executed an internal plan to cope with external developments,” says ceo Michael Siegal. “Looking ahead, Olympic Steel enters 2016 with a particularly strong balance sheet, a significantly lower operating expense base aligned with the industry-wide decline in sales volumes, and faster-turning inventory. Although steel prices have firmed from the 2015 market lows of December, the industry environment remains uncertain.”

Continuing to reduce the company’s debt and make the most of its working capital will be key to navigating another tough year, he adds.

“Our proven and continued discipline in cost containment and working capital management supported by a flexible, low-cost debt position is the right approach to weather persistently weak industry conditions,” he says. “We believe that we are favourably positioned to take advantage of the market.”