Portland, Oregon, USA — Schnitzer Steel Industries, Inc. has announced preliminary results for its second quarter of fiscal 2018 ended February 28, 2018. Second quarter consolidated results are expected to be significantly improved compared to the prior year second quarter results of $0.40 earnings per share and $0.37 adjusted earnings per share.
For the second quarter of fiscal 2018, Auto and Metals Recycling (AMR) is expected to report operating income in the range of $42 – $44 million, or operating income per ferrous ton of $47 – $49, compared to operating income of $25 million, or operating income per ferrous ton of $34, in the prior year second quarter. Ferrous and nonferrous sales volumes are expected to increase by approximately 21 percent and 13 percent, respectively, compared to the prior year second quarter, and average ferrous and nonferrous selling prices are expected to increase by approximately 27 percent and 13 percent, respectively, compared to the same period in the prior year. AMR’s higher second quarter performance is expected to benefit from expanded metal spreads, operating leverage from higher volumes, increased average net selling prices and sustained contributions from productivity improvements. AMR’s second quarter results are expected to include a favorable impact from average inventory accounting of $4 million, consistent with the prior year second quarter.
Cascade Steel and Scrap (CSS) is expected to generate operating income of approximately $5 million, reflecting a significant improvement from the second quarter of fiscal 2017 operating loss of $1 million. Finished steel sales volumes are expected to be 18 percent higher than the prior year second quarter, and average selling prices for finished steel products are expected to increase by approximately 20 percent year-over-year. The expected improvement in CSS operating performance is primarily driven by the higher finished steel sales volumes and selling prices, higher export ferrous sales volumes and additional productivity improvements from the integration of our Oregon metal recycling and steel manufacturing operations. The prior year second quarter also included an adverse impact from higher beginning inventory costs following downtime for a major equipment upgrade in the preceding quarter.
The preliminary information provided above remains subject to change based on final review of the Company’s second quarter financial results.
Source: Business Wire