What caused ZEUS's earnings decline in 2024?

Olympic Steel's earnings decline in 2024 can be attributed to a combination of factors:

1. **Revenue Decline**: The company experienced a decrease in total revenue, with the third quarter reporting $470.0 million, a 11% decrease from the previous year's $526.3 million. This decline was driven by lower revenue across all segments, primarily due to reduced demand from OEM customers and pricing pressure in the Specialty Metals segment.
2. **Market Challenges**: The company faced significant market challenges, including reduced demand from OEM customers, particularly in the heavy equipment sector, which led to lower volumes in the Carbon segment. Additionally, stainless steel surcharges fell to a 3.5-year low, creating pricing pressure in the Specialty Metals segment.
3. **Strategic Diversification**: Despite the challenges, Olympic Steel's strategic diversification into counter-cyclical steel-intensive end products and focus on higher-margin opportunities helped mitigate the impact of fluctuating metal prices and positioned the company for sustained growth. The company's operational strategy remained robust, with a strong emphasis on disciplined cost control and investment in new equipment and automation to enhance safety, efficiency, and productivity.

In summary, Olympic Steel's earnings decline in 2024 was primarily caused by a decline in revenue due to market challenges such as reduced demand from OEM customers and pricing pressure in the Specialty Metals segment. However, the company's strategic diversification and focus on higher-margin opportunities helped mitigate the impact of these challenges.