Lower scrap prices propel Schnitzer to significant decline in earnings

Friday, 28 June 2013 01:26:24 (GMT+3)   |   San Diego
       

On Thursday, Schnitzer Steel Industries, Inc. reported adjusted earnings per share of $0.09 and earnings per share of $0.03 for its fiscal 2013 Q3 ended May 31, 2013. This compares to adjusted earnings per share of $0.36 and earnings per share of $0.32 in Q2 2013.

Operating income in the company's Metals Recycling Business was negatively impacted by the significant drop in ferrous selling prices which fell more quickly than purchase prices and offset some of the benefits from the increased volumes. Ferrous export selling prices declined steadily throughout Q3, Schnitzer said, with market prices at the end of May approximately $50 per ton lower than at the end of Q2 of fiscal 2013 driven primarily by lower export demand.

Ferrous sales volumes of 1.2 million tons in Q3 increased 6 percent sequentially due to stronger domestic volumes and the timing of shipments. Export customers accounted for 73 percent of total ferrous sales volumes in Q3. Ferrous and nonferrous products were shipped to 13 countries, with China, Turkey and Malaysia being the top ferrous export destinations.

The company also said that export prices declined steadily throughout the quarter as demand moderated. Higher priced sales orders before the market dropped resulted in average net ferrous selling prices which approximated Q2 levels.

In Schnitzer's Steel Manufacturing Business, finished steel sales volumes of 125,000 tons increased 31 percent from Q2 of fiscal 2013 due to seasonal improvements in demand. Average net sales prices for finished steel products of $687 per short ton approximated Q2. Operating results during the quarter approximated break-even levels. The decline in margins compared to the second quarter was due primarily to the impact on costs of goods sold from lower utilization levels as customer demand was partially met with inventories produced during the second quarter.

 


Similar articles

Mexican domestic scrap prices

28 Mar | Scrap & Raw Materials

Carbon and stainless scrap prices in Taiwanese domestic market - week 13, 2024

28 Mar | Scrap & Raw Materials

Turkey’s deep sea scrap prices stabilize at $385-390/mt CFR

28 Mar | Scrap & Raw Materials

CISA: Coking coal purchase cost in China down 9.86% in Jan-Feb

28 Mar | Steel News

US scrap market still expecting sideways pricing in April

27 Mar | Scrap & Raw Materials

Ex-US deep sea scrap prices to Turkey increase, ex-EU prices relatively stable

27 Mar | Scrap & Raw Materials

Downtrend reverses in Pakistan’s import scrap segment

27 Mar | Scrap & Raw Materials

Average local Chinese scrap prices rise amid tight supply after previous decreases

27 Mar | Scrap & Raw Materials

Import scrap prices in India move up, but low bids prevent deals

27 Mar | Scrap & Raw Materials

Baltic countries and Czech Republic seek EU ban on ex-Russia scrap imports

27 Mar | Steel News