Schnitzer Steel Records 21% Jump in Ferrous Sales Volume

SEATTLE (Scrap Monster): Portland, Oregon-headquartered Schnitzer Steel Industries, Inc. has announced financial results for the second quarter of fiscal 2018 ended February this year. The quarter witnessed the strongest consolidated operating income since fiscal 2011. The quarterly finished steel volumes were up by 18%. Also, ferrous sales volumes surged higher by 21%.

Tamara Lundgren, President and Chief Executive Officer stated that the quarter saw strong demand and higher prices for recycled metals. He attributed the robust quarterly results to various commercial initiatives undertaken by the company in recent times to grow volumes and the ongoing efforts by the company to increase productivity.

According to company press release, it reported adjusted earnings per share (EPS) from continuing operations of $1.42, which is significantly higher when compared with $0.64 in the first quarter of 2018 and $0.40 in the corresponding period last fiscal. The Auto and Metals Recycling (AMR) division’s operating income surged to $45 million during Q2 2018, when compared with $25 million in same quarter the previous fiscal. AMRS’s ferrous sales volume was up by 21%. The average ferrous net selling prices too recorded substantial jump by almost 27%.

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The company’s Cascade Steel and Scrap (CSS) reported big jump in operating income during the second quarter. The operating income witnessed five-fold jump over the year from $1 million to $5 million. The improved operational performance was mainly on account of 18% surge in finished steel sales volume, aided by huge decline in steel rebar imports. The average selling prices too reported a jump of 20%.

Schnitzer Steel shipped ferrous, non-ferrous and recycled auto parts to as many as 22 countries during the quarter. The key destinations of ferrous shipments during the quarter were Turkey, China and Vietnam.