Schnitzer Steel Industries, Inc. reported Thursday adjusted earnings per share of $0.16 and earnings per share of $0.12 for its fiscal 2014 third quarter ended May 31, 2014. This compares to adjusted earnings per share of $0.09 and earnings per share of $0.03 in the third quarter of fiscal 2013.
In the Metals Recycling Business, demand for recycled metals remained steady compared to the second quarter. However, a decline in ferrous prices for shipments early in the quarter led to lower average selling prices which resulted in an estimated adverse impact from average inventory accounting of approximately $10 per ton sequentially. This adverse average inventory impact more than offset the benefits from productivity improvements and cost reductions in the third quarter resulting in operating income per ton of $4 in the Metals Recycling Business. The Auto Parts Business achieved higher car volumes and seasonally stronger retail sales which more than offset the impact of weaker commodity prices and generated a sequentially higher operating margin of 8 percent. In the Steel Manufacturing Business, stronger nonresidential construction markets drove increased sales volumes and sequentially higher operating income of $5 million.
The Company continued to successfully execute on its $40 million productivity initiatives and cost savings program, approximately 70 percent of which are expected to be achieved by the end of fiscal 2014. In the third quarter, savings of $9 million were generated through the Metals Recycling and Steel Manufacturing Businesses which, together with prior savings, is a year-to-date benefit of $20 million.