The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Dave Storms - Stonegate Capital Partners LLC - Analyst
: Good morning. So you mentioned in the prepared remarks that you're obviously doing a lot to bring new machinery into your operations. Just
trying to get a sense of -- and I appreciate you laying out kind of the lead times for getting them in those machines in-house. Just trying to get a
sense of maybe what step two would be there between implementing those machines, getting employees trained up on them. How should we
be thinking about what it will take to get those machines up and running once they're in-house?
Question: Dave Storms - Stonegate Capital Partners LLC - Analyst
: Understood. That's very helpful. So we could hopefully start seeing some of that in 2025. Okay, perfect. And then just one more for me. Great to
see that you paid down some debt. I know you've obviously been acquisitive in the past. Are there any M&A targets that you're kind of keeping
your eye on? Maybe give a sense of what the market looks like? And maybe as you're thinking about M&A targets, are you targeting -- would you
be targeting more countercyclical-type companies that have been so beneficial for you recently?
Question: Dave Storms - Stonegate Capital Partners LLC - Analyst
: Thanks for taking my questions, and good luck on the fourth quarter.
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Hi. Good morning, guys. The continued demand weakness from industrial machinery and equipment OEMs, some of your peers have already
spoken to it, and you talked about it to seasonally soft third quarter volumes. Any thoughts regarding the potential for a release of pent-up demand
after we hopefully get past the election next week and gain some clarity on the next four years?
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Okay, thanks. That's helpful. I appreciate that. And then next, pipe and tube gross margin of 35% this quarter was the segment's best number of
the year, but sales have fallen almost 10% sequentially in both the second and the third quarter. So a two-part question here. Can you address how
segment volumes behaved during the third quarter? And then of that $79 million in sales in the third quarter, any way to frame up how much of
that's coming from the higher-margin Central Tube and Bar?
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: Okay, thank you. And then one last one for me. If Nippon is able to close on its acquisition of US Steel, what do you think changes both in the
marketplace and for Olympic specifically? And remind me, do you have any co-located facilities with US Steel right now?
Question: Samuel McKinney - KeyBanc Capital Markets - Analyst
: All right. Thanks, guys. Good luck on the fourth quarter.
Question: Chris Sakai - Singular Research - Analyst
: Hi, good morning. My question is that for carbon flat operating expenses, are a lot of these fixed expenses that can't -- you cannot change? Or what
can be done to reduce operating expenses?
Question: Chris Sakai - Singular Research - Analyst
: Okay, thanks. And then a lot -- it sounds like you're doing a lot of internal investments. Is the main goal here to really increase profitability? Is that
the main understanding?
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NOVEMBER 01, 2024 / 2:00PM, ZEUS.OQ - Q3 2024 Olympic Steel Inc Earnings Call
Question: Chris Sakai - Singular Research - Analyst
: Great. Thanks for the input.
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