Schnitzer Steel Posts Robust Results in Q2 Fiscal 2019

SEATTLE (Scrap Monster):  Schnitzer Steel Industries, Inc. reported financial results for second quarter of fiscal 2019 ended February 28, 2019. The company delivered strong quarterly performance in a challenging environment.

Schnitzer Steel reported earnings from continuing operations of $0.46 per share in Q2, as compared with $0.57 per share for the first quarter of fiscal 2019. The adjusted earnings too recorded marginal decline from $0.58 per share to $0.48 over the quarter.

The company’s Auto and Metals Recycling (AMR) segment reported operating income of $22 million in Q2 as compared with the operating income of $23 million during the first quarter of fiscal 2019. On a year-on-year basis, the Cascade Steel and Scrap (CSS) operating income increased from $5 million to $6 million, primarily on account of benefits from productivity initiatives and notable jump in average net selling prices of finished steel.

Commenting on the results, Tamara Lundgren, President and Chief Executive Officer stated that the company benefited immensely from the swift execution of productivity initiatives. The CSS segment delivered robust results despite lower sales volume on account of construction delays due to unusually severe winter weather conditions in major markets.

The severe weather conditions also impacted scrap flows. Ferrous sales volumes declined by 4% over the previous year, whereas nonferrous sales volumes surged higher by 8%. The average ferrous net selling prices dropped 9% during the second quarter of fiscal 2019. Meantime, average nonferrous net selling prices witnessed much sharper decline of 19% compared to the prior year second quarter.