Schnitzer Steel Predicts Tremendous Jump in Ferrous Sales Volume

SEATTLE (Scrap Monster): Schnitzer Steel Industries, Inc. has announced preliminary results for its third quarter of Fiscal 2018 ended may 31, 2018. The earnings from continuing operations are likely to remain in the range of $1.27-$1.33 per share. The adjusted earnings are estimated to range between $1.22 per share and $1.28 per share. This is clear improvement over the prior year. Also, the company expects huge surge in ferrous sales volume during the quarter.

The Auto and Metals Recycling (AMR) division is expected to record operating income in the range of $53 million-$55 million, significantly higher when compared with the operating income of $30 million during the previous fiscal third quarter. The ferrous sales volumes are likely to witness 19% surge, whereas the nonferrous sales volumes are likely to see 3% decline over the previous year. The average net selling prices for ferrous and nonferrous are expected to increase by 31% and 14% respectively.

The Cascade Steel and Scrap (CSS) segment is likely to report operating income of nearly $11 million, rising substantially from the third quarter of fiscal 2017. The operating income had totaled only $1 million in Q3 of fiscal 2017. The sales volume of finished steel is expected to remain more or less flat over the previous year. However, the average net selling prices are expected to surge higher by 29%, which in turn will outpace the sharp jump in costs of steelmaking raw materials. The productivity improvements at Oregon metal recycling and steel manufacturing operations will also contribute to improved performance by the CSS segment.

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According to Schnitzer Steel, the operating cash flow is expected to range between $60 million and $65 million in the third quarter of fiscal 2018. The quarter will witness a likely reduction of $38 million in total debts.

The third quarter fiscal 2018 financial results will be declared on Tuesday, June 26, 2018.