Schnitzer Steel's Q4 Ferrous Volumes to Surge 17%

SEATTLE (Scrap Monster): Schnitzer Steel Industries, Inc. announced preliminary results for the fourth quarter of fiscal 2018, ended August 31, 2018. The company expects the earnings per share from continuing operations to range between $0.95 and $1.00. Meantime, the adjusted earnings per share are likely to be in the range of $0.93-$0.98.

The operating income of Auto and Metals Recycling (AMR) division is expected to be in the range of $32 million-$34 million. When compared with the prior quarter, the decline in ferrous and nonferrous selling prices are likely to have an adverse impact during Q4 fiscal 2018. This will be partially offset by benefits due to higher ferrous and nonferrous sales volumes and reduced raw material costs. The company will also reap the benefits of continuous capability enhancements.

Over the previous year, the average ferrous net selling prices are expected to surge higher by 23%, whereas ferrous sales volumes are expected to witness 19% jump. Meantime, the nonferrous net selling prices and sales volumes are likely to grow by 8% and 11% respectively, when compared with same quarter the previous fiscal.

The Cascade Steel and Scrap (CSS) segment operating income is expected to report substantial year-on-year improvement from $8 million to $14 million in Q4 fiscal 2018, primarily driven by higher average net selling prices for finished steel products.

During entire fiscal 2018, the total ferrous volumes are expected to improve by 17% compared to fiscal 2017.