During Portland, Oregon-based Schnitzer Steel Industries' fiscal Q3 conference call Thursday, President and CEO Tamara Lundgren said that looking forward to fiscal Q4, the long products sector is expected to remain weak and sales prices will likely approximate those seen in fiscal Q3.
In Q3, in its steel manufacturing business sector, average steel mill sales prices were $734/net ton (nt), compared to $687/nt in fiscal Q2 and $635/nt in fiscal Q3 2010. Sales volumes also rose to 118,000 nt in fiscal Q3, representing a jump from 99,000 nt in the prior quarter, but were down from 131,000 nt in fiscal Q3 2010.
"Our Steel Manufacturing Business achieved operating profitability for the quarter and year-to-date, primarily driven by higher sales prices and increased mill utilization," said Lundgren. "We expect to continue to benefit from the normal seasonal improvement in construction activity during the summer months and to maximize value from our product diversification and operational efficiencies."
Lundgren also said, however, that there is little sign to sustained recovery in the West Coast construction market, and the overall US market is only expanding modestly with a "fair amount of patchiness."
Overall, in fiscal Q3, total net income totaled about 33 million, compared to 30.1 million in fiscal Q2 2011, and 40.5 million in fiscal Q3 of last year. So far in fiscal 2011, Schnitzer has also made 10 acquisitions, and has made 24 acquisitions in the last five years.