Schnitzer Steel Results Impacted by Weak Demand, Operational Disruptions

SEATTLE (Scrap Monster): Portland, Oregon-headquartered Schnitzer Steel Industries, Inc. declared results for its first quarter of fiscal 2023 ended November 30, 2022. The results during the quarter were badly impacted by lower average selling prices for recycled metals and finished steel products.

The company reported diluted loss per share from continuing operations of $(0.64) and adjusted diluted loss per share from continuing operations of $(0.44). The quarter ended at net loss of $(18) million and net loss per ferrous ton of $(21). The adjusted EBITDA stood at $8 million, whereas the adjusted EBITDA per ferrous ton was $10.

The company press release noted that both ferrous and nonferrous sales volumes recorded decline over the sequential quarter, primarily on account of extended operational disruptions at the Everett and Oakland metals recycling facilities.

During the quarter, Schnitzer Steel made strategic growth investments in advanced metal recovery technologies. In addition to commissioning two primary nonferrous recovery systems in Massachusetts and California, the company purchased the operating assets of Dallas, Texas-based ScrapSource LLC.

Tamara Lundgren, Chairman and Chief Executive Officer noted that it foresees significant sequential improvements in Q2 results, mainly aided by increased demand for recycled metals in both the export and domestic markets and higher selling prices.

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