Schnitzer Reports First Quarter 2014 Financial Results
Sequential Improvements in Financial Performance
Continued Progress on Cost Reductions
Business Wire Schnitzer Steel Industries, Inc.
Schnitzer Steel Industries, Inc. (SCHN) today reported an adjusted loss per share of $(0.18) and a loss per share of $(0.23) for its fiscal 2014 first quarter ended November 30, 2013. Adjusted results for the first quarter exclude a $2 million, or $0.05 per share, restructuring charge associated with cost reduction initiatives. In the first quarter of fiscal 2013, the Company reported an adjusted loss per share of $(0.02) and a loss per share of $(0.06).
All three business segments generated positive operating income during the first quarter of fiscal 2014. As anticipated, our Metals Recycling Business improved sequentially, delivering results slightly above break-even. Our Auto Parts Business also improved compared to the fourth quarter of fiscal 2013, recording operating margins of 9%, excluding the impact of new stores added since the first quarter of fiscal 2013. Our Steel Manufacturing Business was in line sequentially notwithstanding a bad debt expense of $1 million, or $0.03 per share. The first quarter results also include a charge for deferred tax valuation allowances of $1 million, or $0.04 per share.
Market conditions improved as the quarter progressed. Both prices and demand were relatively weak in the first half of the quarter which impacted shipments in September and October. In the second half of the quarter, demand strengthened which increased prices by approximately $30 per ton. Consequently, performance in the last month of the quarter was significantly better than during the first two months.
Schnitzer Reports First Quarter 2013 Financial Results
Delivers Positive Operating Income and Expands Auto Parts Business Platform by Ten Stores
Press Release: Schnitzer Steel Industries, Inc. – Tue, Jan 8, 2013 8:30 AM EST.. .
PORTLAND, Ore.--(BUSINESS WIRE)--
Schnitzer Steel Industries, Inc. (SCHN) today reported adjusted operating income of $3 million, an adjusted loss per share of $0.02 and a loss per share of $0.06 for its fiscal 2013 first quarter ended November 30, 2012. Adjusted results for the quarter exclude a $2 million pre-tax restructuring charge associated with cost reduction initiatives announced in August 2012. All three of the Company's business segments generated positive operating income. Reported results for the first quarter include the adverse impact of a noncash valuation allowance on deferred tax assets of approximately $2 million, which equates to $0.06 per share, and the $2 million restructuring charge, which equates to $0.04 per share. In the fourth quarter of 2012, the Company reported a loss per share of $0.02.
During the first quarter, export and domestic sales prices for recycled ferrous metals dropped approximately $50 per ton from August levels driven by significantly lower domestic utilization rates and weak global economic conditions which continued to adversely impact overall steel demand. In addition, the supply of scrap continued to be constrained by low US GDP growth, and supply volumes were negatively impacted by the lower price environment. The combination of declining trend in selling prices, the impact of constrained supply volumes on production costs and the timing of shipments resulted in lower sales volumes and compressed margins during the quarter.