Schnitzer Steel Reduced Debt to Decade-Low Level

SEATTLE (Scrap Monster): Schnitzer Steel Industries, Inc. reported strong results for Q4 and the fiscal year ended August 31, 2020. The company reduced debt to lowest level in almost a decade. The board also declared quarterly dividend.

The earnings per share from continuing operations were $0.14 in the last quarter of the current fiscal. The adjusted earnings per share were $0.23. This compares with the reported and adjusted earnings per share from continuing operations of $0.41 and $0.42 respectively in the prior year fourth quarter.

The Auto and Metals Recycling (AMR) segment reported operating income of $15 million, as compared with $3 million in the prior quarter. The segment adjusted operating income of $18 per ferrous ton tripled over the sequential quarter.

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The operating income in the fourth quarter by the Cascade Steel and Scrap (CSS) segment was $8 million, higher from $7 million in the prior quarter. The improvement in performance was mainly supported by the surge in finished steel sales volumes.

The company reduced its total debt to $104 million and debt, net of cash to $87 million as of the end of fiscal 2020. The capital expenditures for the fiscal were $82 million. The Board of Directors declared a cash dividend of $0.1875 per common share, payable to shareholders on November 16, 2020.

Tamara Lundgren, Chairman and Chief Executive Officer stated that the company had kept its focus on optimizing its sales, streamlining its operating costs and continuing with its strategic investments.