Schnitzer Steel Foresees Higher Net Selling Prices for Finished Steel Products

SEATTLE (Scrap Monster): Portland, Oregon-headquartered Schnitzer Steel Industries, Inc. announced preliminary results for second quarter of fiscal 2019.

According to company press release, it expects the earnings from continuing operations to range between $0.42 per share and $0.46 per share. The adjusted earnings per share is forecast to be in the range $0.44-$0.48. This compares with the reported and adjusted earnings per share from continuing operations of $0.57 and $0.58 respectively during the prior quarter.

Schitzer Steel expects its Auto and Metals Recycling (AMR) division to report operating income in the range between $21 million and $22 million. It foresees operating income per ferrous ton to be in the range of $24-$25. The additional productivity initiatives are likely to substantially offset the impacts of seasonally lower volumes and retail sales. The huge drop in net selling prices for ferrous and nonferrous products is likely to lead to compression of operating margins. The average ferrous and nonferrous net selling prices are expected to decline sharply by 9% and 19% respectively. Also, ferrous sales volumes are projected to decline by 4%. Meantime, nonferrous sales volumes may witness 9% surge when compared with corresponding quarter the previous fiscal.

The Cascade Steel and Scrap (CSS) division is likely to post operating income of nearly $6 million, mainly due to higher average net selling prices for finished steel products. The average net selling prices are expected to be higher by 19% over the previous year. At the same time, the company expects 25% dip in finished steel sales volume.