Schnitzer Steel Returned to Profitability in Q2 FY23

SEATTLE (Scrap Monster): Portland, Oregon-headquartered Schnitzer Steel Industries, Inc. today reported results for its second quarter of fiscal 2023 ended February 28, 2023.

The company reported diluted earnings per share from continuing operations of $0.14, net income of $4 million and net income per ferrous ton of $3. The adjusted diluted earnings per share from continuing operations stood at $0.14. The company recorded adjusted EBITDA of $32 million and adjusted EBITDA per ferrous ton of $25. Also, the operating cash flow generation remained strong at $88 million.

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The average net selling prices for ferrous and nonferrous metals increased by 8% and 10%, respectively over the sequential quarter. The ferrous sales volume surged 48% quarter-on-quarter, mainly driven by drawdown of inventories and resumption of full operations at the Everett and Oakland facilities in mid-November 2022. Meantime, the nonferrous sales volume were up marginally by 1% over the prior quarter.

Tamara Lundgren, Chairman and Chief Executive Officer noted that the strong sequential performance improvement is a reflection of the strengthening demand and prices for recycled metals and the successful resolution of the operational disruptions it faced in the first quarter. Looking forward, the company expects further improvement in results in the third quarter, Lungdren added.