Schnitzer Steel posts large 4Q profit decline

Schnitzer Steel Industries posts large 4Q profit decline, 2009 loss

• On 12:11 pm EDT, Tuesday October 27, 2009

PORTLAND, Ore. (AP) -- Schnitzer Steel Industries Inc. said Tuesday it posted a 92 percent decline in its fourth-quarter profit and registered a loss for the full year as it struggled with a steep downturn in metals recycling, auto parts and steel manufacturing.

The Portland, Ore., company beat Wall Street estimates, but its shares fell sharply in morning trading.

Schnitzer reported net income of $10.3 million, or 36 cents per share, for the fourth quarter, compared with $126.4 million, or $4.38 per share, in the same quarter last year.

Analysts surveyed by Thomson Reuters expected Schnitzer Steel to earn 31 cents per share.

Revenue for the quarter ended Aug. 31 was $556.2 million, down 58 percent from $1.31 billion.

Analysts expected revenue to be $520 million.

Tamara Lundgren, president and CEO, said the weak U.S. economy continues to negatively impact demand for finished steel products and recycled metals.

"However, we believe our export platform and strong balance sheet have positioned us well to take advantage of growth opportunities during 2010 and beyond," she said.

For fiscal 2009, Schnitzer Steel posted a $32.2 million loss, or $1.14 per share, down sharply from a profit of $248.7 million, or $8.61 per share, in the same quarter last year.

Analysts surveyed by Thomson Reuters expected the company to post a loss of $1.20 per share.

Revenue for the year ended Aug. 31 was $1.9 billion, down 48 percent from $3.64 billion last year.

Shares fell $3.27, or 6.4 percent, to $47.92 in midday trading.

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